Blog Left Sidebar

The longer I work as a real estate broker, the more I am convinced that my profession should do a better job of educating the public about real estate agents and brokers. Few home buyers and sellers seem to really understand how real estate agents work, or how to follow protocol, who pays us and why we do the things that we do. Ask what the public does know, and you’ll hear all kinds of myths.

Because real estate agents can make or break your deal, you owe it yourself and to your financial future to understand how agents work. Do you know the difference between REALTORS® and real estate agents? Do you need an agent or would you be better off doing it all yourself? Which type of real estate agency might be best for you, dual or single? Should you sign with a buyer’s broker? Can you go to open houses and call other agents if an agent is e-mailing you listings? How are real estate agents paid and who pays them?

What are the different types of listing agreements? Find out the answers before you start looking for an agent to represent you.

About Finding and Hiring Real Estate Agents

I hate to admit this but I was once hired to sell a half-million dollar house simply because I was standing in the street, wearing my name badge and yakking on my cell. The seller spied me from her front porch and said, “Hey, you look like a real estate agent. I wanna sell my house!”

Speaks volumes about agents, doesn’t it? She was lucky. I knew how to price her home. But I could have been Joe Blow from Kokomo (no offense to those from Indiana). Or, some newbie agent. Agents are like any other profession, you’ve got good and bad and in-between.

What few agents will acknowledge is the fact that more than half of the deals they get are because the agents are in the right place at the right time. Not because (cough, cough) they are competent. Just watch enough HGTV and BRAVO TV shows and that point will become crystal clear to you. Want a pro? Here’s how to find a competent agent and make sure you get the services you truly deserve:

• Why You Should Hire a Real Estate Agent
• How to Find a Real Estate Agent
• How to Interview Your Agent
• The Differences Between Real Estate Agents and REALTORS®
• Do You Need Two Agents to Buy & Sell?

About Working With Real Estate Agents

Can you call your agent at 9:00 at night? How about 6 AM? Can you work with more than one agent at a time? How much trouble can you get into if you sign multiple purchase agreements through multiple agents? If a listing agent shows you a home, can you call your brother-in-law to write the offer and represent you? What if you’re unhappy or your agent doesn’t live up to your expectations? Can you get rid of the agent? How do you cancel a listing contract? If you’ve ever thought about these questions, these articles are for you.

• What an Agent Can and Cannot Do For You
• What is Procuring Cause?
• Understanding Agent Protocol
• Why Agents Take Overpriced Listings
• How to Fire Your Agent

About Real Estate Commissions

How agents get paid and whether it’s insulting to try to negotiate a commission are the two most often asked questions from buyers and sellers. It’s not that complicated but it sure seems that way on the surface, doesn’t it? After all, what makes agents worth all that money? What do they do to deserve six-figure incomes anyway? Does the amount of the commission depend on whether it’s a hot or cold market? Is it possible to get maximum exposure for your home with a minimum-service agent? The answers might surprise you.

• Full-Service Real Estate Agents
• Who Pays the Commission?
• How to Negotiate Real Estate Commissions

Source

Some people, for their own reasons, don’t trust real estate agents and don’t really understand what an agent brings to the table that they can’t do for themselves. It’s an understandable reaction, as it’s a polarizing subject. Agents are either despised or loved. They earn an A or an F on their closing report card – there is rarely a C on performance in this business.

Some buyers and sellers could manage very well on their own. An A-rated agent can bring added value to the transaction, but for some consumers, an agent is not always completely necessary. It depends on how much money you want to make. Generally, you make more selling with an agent. Here is how you can tell.

Do You Need a Listing Agent to Sell Your Home?

As a seller, you can find your own buyer. But an agent may be able to help you get more on your bottom line – according to NAR, almost 22% more. Much depends on the real estate market.

In super hot seller markets, almost anybody can stick a sign in the yard and attract offers. That’s because buyers are falling all over themselves to buy and waving earnest money deposits in the air. Have you extensive experience handling multiple offers yourself? Will you get sued? Do you know how to extract more money from buyers? Will you get through the home inspection? Will you close?

In buyer’s markets, there are fewer buyers, which makes an agent’s services worth even more.

More than 80% of buyers purchase a home through a real estate agent. If you don’t hire an agent, you could be losing exposure to 80% of the buying population.

Listing Agents Can Bring Added-Value to a Transaction

Unless you routinely attend every open house in your neighborhood, you may not possess intimate information about the interiors of your neighbor’s homes nor know why some sold for higher prices than others. Experienced agents have this knowledge and use it to position your home to sell at the highest possible price.

Top listing agents sell homes day in and day out. Here is a list of services most listing agents offer to sellers:

• Marketing materials and proven selling systems.
• Professional virtual tours and photography.
• Wide internet exposure.
• Promotion at company meetings and MLS meetings.
• Networking with fellow real estate agents.
• Price guidance according to market data and recent sales.
• Home stagers, inspector and repair contractor referrals.
• Buyer feedback and private showings.
• Confirmation of potential buyer qualifications.
• Counteroffer and negotiation expertise, especially with multiple offers.
• Guidance to get past the home inspection without making repairs.
• Suggestions for dealing with low appraisals.

Buyer’s Agents Work for the Buyer and Not the Seller

Done correctly, a buyer’s agent’s job is to put the buyer’s interests ahead of the agent’s, to disclose all material facts, keep the buyer’s information confidential, provide the buyer with sufficient information to purchase a home and expertly negotiate on the buyer’s behalf.

Here are some of the services you can expect to get from a buyer’s agent that you might not be able to obtain on your own. Apart from hearing about listings before homes are available to the public, agents can:

• Provide comparable sales from the tax rolls.
• Provide sales data from MLS based on map searches.
• Pull property profiles reflecting sales history, property data, demographics and neighborhood services.
• Obtain a copy of the home’s historical documents.
• Run reports on listing agent’s list-price to sales-price ratios.
• Calculate annual facts and trends about an area.
• Suggest a pricing strategy.
• Prepare a strong offer that presents the buyer in the best light based on market demands and agent interaction/networking.
• Review of documents for loopholes and obtain disclosures.
• Provide a buffer between you and the seller’s agent.

If you feel competent that you can handle a sale or purchase on your own, maybe you can. But you might always wonder whether you paid too much or accepted too low of a price.

Source