Many people ask “Why use a real estate agent?”, when you’re looking to buy a home or selling your current one, it’s a good idea to work with an experienced real estate agent. An inexperienced agent can waste your time and money, and may even put you at risk of losing your dream home.
1) Education & Experience
Anyone can use the internet to look up homes for sale and arrange viewings. Public records and geographic information system maps can be used to research sales and property assessment histories on many municipal websites. However, knowledgeable real estate agents have daily exposure to local markets and can offer the kind of detailed information and recommendations unlikely to be discovered from online real estate searches.
Agents can provide useful guidance in a variety of ways, including:
- Relationships with other agents: Because seasoned agents are familiar with other agents in the neighborhood, this helps speed up house sales. For instance, if you’re looking to buy a home, your agent can inform other agents to alert them as soon as a property that fits the bill is set to reach the market.
- Market tempo: Skilled agents are adept at spotting and even foreseeing trends. They can inform you of the areas that are heading upward or downward and why. They can provide you advice on whether to act and when to wait if you don’t need to buy or sell right away.
- Negotiation experience: The greatest way to refine the technique of negotiating the best price is to do it repeatedly. It also helps to know who you’re dealing with; a seasoned agent frequently has insight into who is eager to purchase or sell now and who can wait for a better price.
- Knowledgeable referrals: Working with vendors including mortgage lenders, title firms, house inspectors, appraisers, general contractors, and pest inspectors is typical when buying or selling a home. Agents with experience know who to trust and who to stay away from.
- Community connections: Expert agents have connections in the local business community and at City Hall. They are aware of market implications and are aware whether a major firm in the area is growing or cutting jobs. They frequently can inform you about zoning amendments that will affect particular communities before they even make the press.
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2) Agents are Buffers
Real estate agents clear the air during your real estate transaction. The builder’s agent won’t be able to bite or nibble at your wallet if you’re a new home buyer since your agent will draw their sword and keep them at bay. Similarly, a knowledgeable real estate agent will weed out all of the emotion that may be present during these high-stakes talks, leaving only the facts for you to consider.
3) Neighborhood Knowledge
Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $600,000, but an agent will know it had upgrades and sold at $550,000 after 75 days on the market and after twice falling out of escrow.
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4) Price Guidance
Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves based on a variety of factors. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.
5) Knowledge of Market Conditions
Real estate agents can disclose market conditions, which will heavily influence the selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.
6) Professional Networking
Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency and competitive pricing. Agents can, however, give you a list of references with whom they have worked and provide background information to help you make a wise selection.
7) Negotiation Skills & Confidentiality
Top producing real estate agents are excellent negotiators who, unlike most buyers and sellers, are able to detach themselves from the emotional components of the transaction. If not properly planned and carried out, the home inspection procedure alone can ruin a deal. We receive specific training on inspections, contract mechanics, and fluid negotiating techniques at Origins. It’s a requirement of our employment. While you utilize a real estate agent, you will ultimately sell your house for a net greater value or get the best deal when purchasing.
8) Handling Volumes of Paperwork
Today’s purchase agreements run 10 pages or more. That does not include the federal and state mandated disclosures nor disclosures dictated by local custom. Most real estate files average from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures.
9) Answer Questions After Closing
Even the smoothest transactions that closes without complications can come back to haunt. For example, taxing authorities that collect property tax assessments, doc stamps or transfer taxes can fall months behind and mix up invoices, but one call to your agent can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Good agents stand by ready to assist. Worthy and honest agents don’t leave you in the dust to fend for yourself. A professional real estate agent works hard to maintain their level of respect in the community and will not abandon a client.
See Also: 8 Reasons to Buy a House
10) Develop Relationships for Future Business
The basis for an agent’s success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make sure clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.
Why use a real estate agent takeaways
- Agents who have repeatedly renewed their licenses are more likely to have a track record of consistently closing deals.
- Experienced real estate agents can provide the kind of nuanced information and advice that online real estate searches cannot.
- The advantages of working with an experienced real estate agent include rapport with other agents, market knowledge, and solid referrals.
- When selecting a real estate agent, look for someone with good communication skills, patience, and marketing knowledge.