When purchasing a home, there are five reasons to hire a real estate agent.
When it comes to home sales, buyers and sellers are on opposite sides of the fence. What one wants to achieve is frequently diametrically opposed to what the other wants to see happen — the first usually wants to steal the property, whereas the second wants top dollar. Despite this, their ultimate goal is the same. They want to make a profit.
Both parties can benefit greatly from retaining the services of a real estate agent, but their motivations may differ.
1. It's All About the Money
If you're thinking about selling your property "FSBO" (for sale by owner), keep this in mind. Of course, you want to obtain the most money for their house, and you might believe that means skipping out on commissions. However, according to a 2017 survey, FSBOs sold for around 30% less than houses listed by an agent.Â
If your buyer is represented by an agent, you'll almost certainly have to pay a commission. The commission paid to the buyer's agent is usually considered into the deal, but you'll still save money on the commission you would have paid your own agency.
If you're a buyer, why not employ an agent? After all, the commission is paid by the seller, not you. Of course, there's always the chance that the seller would refuse, but if that appears to be the case, you can usually move on and look at other houses, though this will depend on whether you're shopping in a buyers' or sellers' market and who has the upper hand.
You may feel out of your element when it comes to studying and comprehending the numerous documents involved in a real estate transaction, and whether you're buying or selling, you should have a complete grasp of what you're getting into. In 2019, purchase agreements can easily exceed ten pages, not to mention federal, state, and municipal document requirements.
Fortunately, your agent will be far more knowledgeable about all of this documentation than you are. If you're still considering saving money, consider the following: Some errors or omissions in these paperwork can cost you as much as—or even more than—the commission you were hoping to avoid paying.
Here's an illustration: A buyer may make an offer on a home that is conditional on obtaining a mortgage. The buyer cannot acquire the property without first obtaining finance, but there is no contingency or escape hatch incorporated into the purchase agreement to allow the buyer to back out if financing falls through. If a mortgage isn't obtained, the buyer is forced to complete the transaction or face legal action.
If you're still determined on not employing an agent to handle everything, consider hiring a broker for a lower one-time cost to only check your contracts before signing them.
3. Confidentiality, Privacy, and Fiduciary Duty
Whether you're a buyer or a seller, your real estate agent has your back. The term "fiduciary" refers to an agent's duty to his or her clients. They had a legal obligation to prioritise their clients' best interests.
This responsibility imposes a very high level of confidentiality. Do you really, really want to hand up your most personal financial information to a seller who has no legal need to keep it confidential? The same goes for giving any and all information to the seller's agent, who has no fiduciary duty to you and only to the seller.
If you're a buyer and the seller's agent has lied to you, deceived you, or exposed sensitive information, you have options. You can notify the agent's professional association, such as the National Association of Realtors, about the situation. However, this presupposes that the seller is represented by an agency.
4. Agents Know What to Look For
Buyers typically have a very good sense of what they want in a home, from the number of bedrooms to an attached garage and a variety of other must-have and must-not-have features. With that list firmly 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 issues that may not occur to you, such as furnace problems, leaks, roofing issues, and mould and insect infestations. An agent will be able to spot the warning signs of these issues and choose the best course of action. Again, this knowledge and experience could end up saving you hundreds of dollars in the long run.
If you're a seller, you know exactly how much you want for your house, but is the price you've set reasonable? You may only know for sure if you can find comparable sales that show you're in the proper ballpark—or not. Comparative market analyses are something that agents can undertake in their sleep.
An agent may provide data on a neighborhood's demographics, crime rates, schools, and other vital elements that has been thoroughly studied, current, and credible. That's a lot of research to complete on your own, especially if you have no idea where to begin.
5. Agents are excellent negotiators.
If you're not an attorney, mediator, union representative...or a real estate agent, you might not be a negotiating shark. Keep in mind that your agent owes you a fiduciary duty. It is your agent's job to obtain the greatest price for your home or to make sure you receive the best bargain on the property you wish to buy.
Even if it's simply via experience, agents are taught to negotiate skilfully. They are well-versed in what works and what does not. Most have their own tried-and-true methods. They also have no emotional investment in the outcome, which can impair their judgement.
You, on the other hand, might be willing to spend an extra $10,000 to get that dream house, never realising that it's not essential because you have certain negotiating chips. It's just more money saved if you have an agent who keeps you from making a costly mistake.
Want to know more information:
Website: https://paramountbaldivis.com.au
Location: Baldivis Rd, Baldivis WA 6171
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