When it comes to home sales, buyers and sellers are on opposite sides of the fence. The goals of each party are frequently diametrically opposed to one another; for example, the first party normally wants to steal the property while the second wants to sell it for the highest price. However, their ultimate objective is the same. They desire a sale. Both parties can gain a lot from working with a real estate agent, while their motivations may vary.
1 .Money comes first
If you’re thinking about listing your house “FSBO” (for sale by owner), take this into consideration. Of course, you want to get as much as you can for their house, and you might believe that means refusing to accept further commissions. However, a 2017 study found that FSBOs brought in roughly 30% less for their owners than properties marketed by agents.
And if your buyer is represented by an agency, you’ll probably still have to pay a commission. Although the commission of the buyer’s agent is often taken into account, you still save on the commission you would have otherwise paid your own agency.
And if you’re the buyer, why not utilize an agent? After all, the seller, not you, is the one who pays the commission. Of course, there is always the remote potential that the seller may decline to do so, but if it seems likely that this will be the case, you can probably move on and look at other houses. This will depend on whether you are shopping in a buyers’ or sellers’ market and who has the upper hand.
2.The details are in the fine line
Whether you’re buying or selling a home, you should fully grasp what you’re getting into because you may be out of your element when it comes to reading and comprehending the numerous documentation involved in a real estate transaction. Not to include the requirements for federal, state, and local documents, purchase agreements by themselves can exceed ten pages.
Fortunately, you won’t know anything about this paperwork like your agent does. If you’re still trying to save money, keep in mind that some errors or omissions in these paperwork may end up costing you significantly more than the commission you were trying to avoid.
A potential buyer might make a mortgage-dependent offer on a house. There is no way the buyer could buy the home without first obtaining finance, but the purchase agreement doesn’t contain any clauses that would allow the buyer to back out of the contract if financing doesn’t work out. If a mortgage doesn’t materialize, the buyer is required to complete the transaction or risk legal action.
If you’re still adamant that you won’t hire an agent to handle all of this, think about hiring a broker for a lower one-time charge to only check your contracts before signing.
3.The client comes first.
Not only are the dealings and transactions confidential and private, your real estate agent is bound by law to put you first as they are bound by fiduciary duty.
A very high level for confidentiality is imparted by this job. Do you, as a buyer, really, really want to give your most private financial information to an FSBO seller who has no legal need to keep it private? The seller’s agent, who does not have a fiduciary duty to you but only to the seller, should be given any and all information. Any information the opposing agent is requesting from you would be known to be reasonable by your own agent.
If you’re a buyer and the seller’s agent has deceived you, lied to you, or revealed sensitive information, you do have options. You can inform the National Association of Realtors or another agent’s professional association about it. However, this also presumes that the vendor has a representative. If the property is for sale by owner, you’ll have much fewer possibilities.
4.Agents already know what to look for.
Typically, buyers have a pretty clear concept of what they want in a home, including the number of bedrooms, whether there is an attached garage, and a host of other must-have and must-not-have features. With that list securely tucked away in the back of your mind, you’ll probably feel relatively at ease looking at houses.
However, your agent will be on the lookout for problems like furnace problems, leaks, roofing issues, mold and bug problems that you might not be thinking about. A representative will be able to identify these issues and know how to best handle them. Once more, this knowledge and experience could end up saving you thousands in the long run.
If you’re the seller, you know exactly how much you want for your house, but is the price you’ve set fair? The only way to be certain is if you can find similar sales that show you’re in the appropriate range, or not. Market comparisons can be performed by agents as they sleep.
A real estate agent can provide well-researched, up-to-date, and reliable information on a neighborhood’s population, crime rate, educational system, and other vital details. That is a significant amount of time-consuming research to conduct on your own, especially if you are unsure of where to begin.
5.The agents will negotiate for you
If you’re not a lawyer, mediator, union rep, real estate agent, etc., you might not be a negotiating shark. Keep in mind the fiduciary duty your agent owes you. Your agent’s responsibility is to negotiate the best price for you when selling your home or to ensure that you receive the finest terms when purchasing a property.
Through experience, agents are taught how to negotiate effectively. They are aware of what typically works and what doesn’t. Most people have their own tried-and-true methods. Most significantly, they have no emotional investment in the result, which can prevent them from thinking clearly.
Buying and selling a home takes a lot of grit and decision making, but we can make it happen!
Call me at 731.234.0049 and we’ll make your home selling/buying a step further into your future!
#RealEstateAgent
#REALTOR
#AmyMcLemoreRealEstate
#AmyMcLemoreBlogs
