Understand why you should use a real estate agent. Find out how a trained professional can help you with everything from setting a price to negotiating and closing the deal.
Its goes without saying that most property sales involve a local real estate agent, for good reason. The majority of individuals that try to act for themselves don’t achieve their aim. For one or all of the following reasons:
What can a professional agent do for you to guarantee a positive outcome?
Setting the right price.
One of the first things a real estate agent presents to a seller is a competitive market analysis (CMA). The CMA is based on current market trends, recent sales in a given area and is the basis for the agent’s recommended listing price. Setting the right price is crucial in property sales, because an inflated asking price can turn away buyers. And according to the National Association of REALTORS in the USA and data out of Australia, sellers who use a real estate agent receive on average 20 percent more for their homes than those who succeed in selling their own property.
A professional dealing with the market on a day to day bases has a better understanding of what is available, in the Neighbourhood they are operating in and why. He or she should also have important information about the area to hand, including future projects, noise levels, schools, shopping, property taxes and demographics and the required experience and training to overcome those objections if that’s what they become. For the vendor, these details are equally important, as if they are handled badly could affect the value and marketability of a property.
Along with a CMA, a real estate agent typically will present sellers with a marketing strategy that details how he or she believes the best outcome can be obtained. This may include coordinating open home inspections, writing and placing ads in various media, printing and distributing brochures and showing the property to potential buyers. Agents also have exclusive access to two resources that are often critical to selling a property: other agents and an extensive data base that will include qualified buyers. Overseas studies have revealed that 82 percent of homes are sold through an agent’s contacts.
A professional agent will always act in the best interest of the vendor or buyer if employed as a buyer’s agent. A conjunctional agreement allows the vendors agent to use their professional contacts to market the property at no extra cost to the vendor. Once a home is listed, information about it can be accessed by all the agents in the area and matched to buyers: in effect, your home is being sold by not one person, but by all those who subscribe to the Conjunctional agreement. A professional agent may also arrange an open house just for real estate agents. In turn, these agents recommend the house to their buyers.
When selling, a real estate agent can provide an unemotional view of the property and what needs to be added or subtracted to make it more appealing to buyers. Buyers who choose to enlist a buyer’s agent benefit from the agent’s responsibility to disclose potential drawbacks and flaws of a property, something an owner has little incentive to do.
Experienced agents having qualified buyers will only inspect properties that fit the buyers criteria or as is often the case having listened to the buyer what they are really looking for. Buyers’ agents help sellers, too, by only showing houses to qualified buyers. This means less chance of a mad rush to clean the house and get the kids out the door for people who are just tyre kickers.
A professional real estate agent negotiates contracts every day often; having received in depth training in this specialised area. Many sales “Fall Over” at contract stage due to a lack of understanding that this is a sensitive moment for all parties that should be dealt with transparently and efficiently! Your agent will know what is required and the information that must be included in the documents, so as to avoid unwanted issues in the future. Your agent can also advise on what stipulations you should make in the contract — items that should remain in the house at closing, for example. Your agent could well have to remind you, at this difficult time, what your original aim was and are you achieving it?
Negotiation and closing assistance.
A real estate agent can provide advice to both buyers and sellers about whether to accept or modify an offer or counter-offer. Once an offer has been accepted, the agent may arrange for a home inspector, financing, a title search and a solicitor, as well as ensure that all repairs and stipulations in the contract are complete.
Not to be your friend.
Deliver the unpleasant news, point out the realities of the market, remind you what you set out to do, what your priorities were, most of which will have been lost to you during the process. Most importantly, provide you with the opportunity for a positive outcome, whatever that may be.