The expansion of services that help homebuyers and sellers complete their own real estate deals is fairly recent, and it might have you questioning whether using a real estate agent is ending up being an antique of a bygone era. While doing the work yourself can conserve you the considerable commission rates numerous real estate agents command, for many, flying solo might not be the way to go-- and might end up being more expensive than a realtor's commission in the long run.
1. Much Better Access/More Convenience
A real estate agent's full-time task is to act as an intermediary between buyers and sellers. Both the purchaser's and seller's agent work full time as real estate agents and they understand what needs to be done to get an offer together. If you are looking to buy a home, a real estate agent will track down houses that meet your requirements, get in touch with sellers' agents and make visits for you to see the homes.
If you are looking to offer your home yourself, you will have to solicit calls from interested celebrations, answer concerns and make appointments. Prospective buyers are likely to move on if you tend to be busy or do not react rapidly enough. You may find yourself making a consultation and hurrying home, only to discover that no one reveals up.
2. Negotiating Is Tricky Business
Many individuals don't like the concept of doing a real estate deal through an agent and feel that direct settlement between buyers and sellers is more transparent and enables the celebrations to better look after their own best interests. This is most likely real-- presuming that both the purchaser and seller in a given transaction are reasonable people who have the ability to get along. This isn't always an easy relationship.
If you are working with an agent, you can express your contempt for the current owner's decorating skills and rant about how much it'll cost you to upgrade the home without insulting the owner. Your real estate agent can convey your concerns to the sellers' agent.
A realty agent can also play the "bad guy" in a transaction, preventing the bad blood between a buyer and seller that can kill a deal. Keep in mind that a seller can reject a potential buyer's deal for any factor-- consisting of just because they hate his or her guts. An agent can help by promoting you in hard deals and smoothing things over to keep them from getting too individual. This can put you in a much better position to get your house you desire. The exact same is true for the seller, who can take advantage of a hard-nosed real estate agent who will represent their interests without turning off potential purchasers who wish to niggle about the cost.
3. Agreements Can Be Hard To Handle
If you decide to purchase or offer a home, the offer to purchase agreement is there to secure you and make sure that you are able to back out of the offer if specific conditions aren't met. If you plan to purchase a home with a home loan but you stop working to make financing one of the conditions of the sale-- and you aren't authorized for the home loan-- you can lose your deposit on the home and could even be taken legal action against by the seller for failing to fulfill your end of the agreement.
An experienced property agent deals with the very same contracts and conditions on a regular basis, and recognizes with which conditions must be used, when they can safely be removed and how to use the agreement to protect you, whether you're buying or offering your home.
4. Real Estate Agents Can't Lie
Well, OK, really they can. Because they are licensed professionals there are more consequences if they do than for a personal buyer or seller. If you are dealing with a certified realty agent under a firm arrangement, (i.e., a conventional, full-service commission arrangement in which the agent agrees to represent you), your agent will be bound by common law (in a lot of states) to a fiduciary relationship. In other words, the agent is bound by license law to act in their clients' benefit (not his/her own).
In addition, most real estate agents depend on referrals and repeat company to build the sort of clientèle base they'll need to endure in the business. This suggests that doing what's finest for their clients should be as crucial to them as any individual sale.
If you do find that your agent has actually gotten away with lying to you, you will have more avenues for recourse, such as through your agent's broker, professional association (such as the National Association Of Realtors) or possibly even in court if you can show that your agent has stopped working to uphold his fiduciary responsibilities.
When a purchaser and seller collaborate straight, they can (and should) seek legal counsel, however because each is expected to act in his/her best interest, there isn't much you can do if you discover later that you've been duped about several offers or the home's condition. And having a legal representative on retainer at any time you wish to speak about possibly purchasing or selling a house could cost far more than an agent's commissions by the time the transaction is total.
5. Not Everyone Can Save Money
Many individuals eschew utilizing a property agent to conserve money, but bear in mind that it is unlikely that both the buyer and seller will reap the benefits of not having to pay commissions. For example, if you are selling your home on your own, you will price it based on the sale prices of other comparable properties in your area. Much of these homes will be offered with the help of an agent. This indicates that the seller gets the keep the portion of the home's price that might otherwise be paid to the real estate agent.
Purchasers who are looking to buy a home sold by owners might likewise believe they can save some cash on the home by not having an agent involved. They may even anticipate it and make an offer accordingly. Nevertheless, unless purchaser and seller agree to divide the cost savings, they can't both save the commission.
The Bottom Line
While there are certainly people who are certified to sell their own homes, taking a glance at the long click reference list of frequently asked questions on a lot of "for sale by owner" websites recommends the process isn't as simple as many individuals assume. And when you enter a tight spot, it can really pay to have a professional in your corner.