When it comes to home sales, buyers and sellers are on opposing sides of the aisle. What one wants to see happen is frequently diametrically opposed to what the other wants to see happen—the first usually wants to steal the property, while the latter wants to make money. Despite this, they both have the same ultimate goal. They want to make a sale.
Both parties can benefit significantly from hiring a real estate agent to assist them, but for different reasons.
Everything Comes Down To Money…
Consider this if you’re thinking about selling your home “FSBO” (for sale by owner). Of course, people want to get the most money for their house, and you may believe that means avoiding extra commissions. However, according to a 2017 study, FSBOs sold for about 30% less than agent-listed properties.
And if your buyer is represented by an agent, you’ll almost certainly have to pay a commission. The buyer’s agent’s commission is usually factored into the deal, but you’ll still save money on the commission you would have paid your own agent.
And, if you’re the buyer, why not hire an agent? After all, the commission is paid by the seller, not the buyer.
…And Attention To Detail
You may be completely out of your element when it comes to reviewing and comprehending the numerous documents involved in a real estate transaction, and you should have a thorough understanding of what you’re getting into whether you’re buying or selling. In 2019, purchase agreements alone can exceed ten pages, not to mention federal, state, and local document requirements.
Fortunately, your agent will be far more acquainted with all of this paperwork than you are. If you’re still thinking about saving money, consider this: Some errors or omissions in these documents can cost you as much as the commission you were attempting to avoid, if not far more.
Agents are aware of what to look for.
Buyers typically have a fairly firm idea of what they want in a property, from the number of bedrooms to an attached garage to a variety of other must-have and must-not-have factors. You’ll probably feel more at ease looking at houses with that list in the back of your mind.
However, your agent will be on the lookout for issues that you may not be aware of, such as furnace problems, leaks, roofing problems, and mold and insect infestations. An agent will recognize the telltale signs of these issues and will know how to approach them in the most effective way. Again, this experience and knowledge can save you thousands of dollars in the long run.
If you’re the seller, you know exactly how much you want for your home, but is the price you’ve set reasonable? You won’t know for sure unless you can find comparable sales that confirm you’re in the right price range—or not. Agents can perform comparative market analyses while sleeping.
An agent can provide well-researched, up-to-date, and credible data on a neighborhood’s demographics, crime rates, schools, and other important factors. That’s a lot of time-consuming research to do on your own, especially if you’re not sure where to begin.
Agents are excellent negotiators.
It is your agent’s responsibility to obtain the best possible price for your home or to ensure that you receive the best possible deal on the property you wish to purchase.
Agents are taught to negotiate well, even if only through experience. They are aware of what works and what does not. Most have their own set of tried-and-true techniques. Most importantly, they do not have an emotional stake in the outcome, which can cloud their judgment.
It’s just more money saved if you have an agent who keeps you from taking unnecessary risks.
When you hire people who are smarter than you, it proves that you are smarter than them, according to Henry Ford. The trick is to recognize when you need assistance and to locate the appropriate person.