Regardless of how slow the real estate market becomes or how difficult it is to match buyers and sellers, people still start families, move out on their own and relocate for professional opportunities. So, when it comes time to purchase or sell a home, it is more important than ever to fully understand your options: should you go with a realtor or take the DIY approach? In the end, there is no right or wrong way to sell or buy a home -- as long as it is a fair deal and it gets done.
If a real estate market is a seller’s market, and everyone is buying at lofty prices without batting an eyelash, it may be fairly easy to go it alone without the help of a realtor. However, if times are a bit tougher, hiring a real estate agent to do the dirty work might be the most logical step. More importantly, regardless of market conditions, realtors often have a network of buyers lined up, and have better insights on price ranges and what people are actually willing to spend to buy a piece of property or a home. On the other hand, realtors can also be invaluable in a slower market -- but they are not miracle workers. Granted, they are motivated by commissions, but even the best realtor cannot make a buyer appear out of thin air.
When choosing a realtor, consider the following points as they will help you determine whether or not to use a real estate agent, as well as what things to look out for should you choose to hire one.
Look at your schedule
Whether you are buying or selling a house -- or both at once -- think of all of the time that it takes to close a deal on a house. After all, it takes a lot more than placing an advertisement on a website. It’s true that there are countless places to effectively promote your interests, but most cost money. Now, think how much simpler it would be to have a realtor coordinate your affairs on his own coin. Also, although the realtor may have other listings, this is his full-time job and when it comes to things like answering phone calls and e-mails or showing the house, the real estate agent can cater to the client’s schedule rather than having the client adjust to yours.Run the numbers and negotiate
It’s no secret that realtors earn a commission. They typically get paid when a transaction is complete and their final fee is usually 6% to 7% of the total deal price. And when you do hire a realtor, the actual price in the end will be affected.For instance, if you are selling and want $200,000 for your home, the realtor will need to list at around $214,000, and that upward pricing pressure will factor into the current market conditions. Do not be afraid to negotiate, and certainly take the time to review the realtor’s contract. Some real estate agents advertise that they will do a commission rate of 2% to 3%, while others will ask for 6% to 7% and may have hidden fees and exclusivity or time frame clauses within the contract. Often, realtors will demand a 10% fee for vacant-land deals and still others, regardless of the type of sale and final value, will charge a flat fee, of say $299, for successfully completing a transaction.
Sometimes, even if the realtor did absolutely nothing and you found the buyer yourself, you still may be obligated to pay the realtor’s commission. Short and simple, always read the contract's fine print to make sure you are being treated fairly and certainly do not hesitate to haggle.
There is always wiggle room and negotiation can put you in a position to have a professional realtor on your side and save you a few dollars as well -- especially in a competitive market.
Leverage your realtor’s knowledge
Realtors often get hired because many people have the impression that they are sales people and are there to sell houses. Of course, selling your home and representing you to buyers is part of their job, but we forget that realtors are licensed professionals. Unless you have a strong real estate background, odds are that the realtor knows more about such things as real estate law, buying and selling trends, and contract ethics than you do. Leverage this knowledge, and do not be afraid to ask questions to gain some. The realtor is there to place classified ads on your behalf and to protect you from falling into a trap or committing some form of a faux pas during the deal. From taking appropriate actions to placing an advertisement to helping with the closing, title and transfer, your realtor is a wealth of knowledge. Additionally, asking the realtor questions during your selection phase will give you insight into their actual abilities.Investigate and check references
There’s nothing wrong with doing a little homework. Do not feel embarrassed about asking awkward questions concerning your realtor’s status. It’s also beneficial to visit your state’s website to ensure that their licenses are valid, to review their past transactions and to see if there are any legal complaints against them. Also, ask for references and talk to the realtor’s previous clients to see how the relationship went. You will find that some realtor’s are more proactive than others. Were the final prices in the transaction up to par? Maybe there is a pattern of clients that feel the price was not as good as they wanted? Additionally, find out if the realtor jumps from brokerage to brokerage, as it may affect your relationship and your ability to get the desired result.there to represent
The real estate agent is ostensibly there to protect your interests, but will naturally be inclined to protect their own. Remember to do your homework and keep it a business transaction for all.Resources:
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