Selling Your Property Without A Real Estate Agent?
This is obvious; you will see some benefits of saving some money by selling your property without a real estate agent. The big question is “Are you sure, you are really saving money?” Study says, by not paying a commission, you have room to lower your price to stay ahead in a competitive market. Even after adjusting your price, you could be left with some additional profit on your home.
If you’re confident about being able to negotiate the deal and have the time to be available for showing and selling your house without a realtor still you cannot maximize the profit from your house.
Selling Your Property With A Real Estate Agent?
While the commission paid to a realtor can seem like a loss of profit when you sell your property. But study says there are numbers of benefits of hiring someone to help you sell your property.
A real estate agent can give your house more exposure than if you sell on your own. Not only do they have access to list on MLS, they may also promote your listing in magazines for home buyers and on their own website.
By hiring a realtor, you also gain their experience in judging the price you should list for and ultimately what you should be willing to sell at. Their experience is an asset when it comes to finalizing the agreements; pointing out differences between multiple offers and helping you choose the best one.
By far, the greatest benefit of having a realtor on your side is during the negotiating process. Having a real estate agent that is a good negotiator can possibly cover their entire commission by not leaving money on the table when it comes to settling on a final price.
Let’s have a look, Why to Use a Realtor When Selling Your Home?
Selling a house is not an easy process. A professional Realtor can help you to sell your property at every stage, from setting a right price of the property until the completion of sale.
Pricing Your Property
The selling process generally begins with a determination of a reasonable asking price. Your Realtor can give you up-to-date information, what is happening in your local marketplace, as well as the pricing, financing and terms and conditions of competing properties. The key factors are marketing your property and selling it at the best price.
Marketing Your Property
This is one of the most important part of selling your property. It exposes your property to the public as well as to other real estate agents through a MLS (Multiple Listing Service). The Realtor Code of Ethics requires Realtors to use cooperative relationships when they benefit clients. Moreover an agent will also know when, where and how to advertise like, which medium, format and frequency will work best for your property and your market.
Securing Your Property
When your property is marketed with the help of an agent, you are safe and secured that no strangers will visit your property. Because, a Real Estate Agent will bring only the qualified prospective clients.
Negotiating For The Best Price
A professional and experienced real estate agent can be a strong negotiator between the parties. Your agent can help you objectively evaluate every buyer’s proposal without compromising your marketing position. This includes a process of appraisals, inspections and financing. Your Realtor can also help you write a legally bindings, win-win agreement that will be more likely to make it through the process.
Lawful Guarantee Of the Transactions
All real estate licensees are not the same. Only real estate agents who are members of the Canadian Real Estate Association (CREA), Real Estate Council of Ontario (RECO) are called Realtors. They proudly display the Realtor logo on their business card, website, and marketing. Realtors subscribe to a strict Code of Ethics and are expected to maintain a higher level of knowledge of the process of buying and selling real estate. Realtors are committed to treating all parties to a transaction honestly.
Five Reasons Why You Still Need A Real Estate Agent
The proliferation of services that help homebuyers and sellers complete their own real estate transactions is relatively recent, and it may have you wondering whether using a real estate agent is becoming a relic of a bygone era. While doing the work yourself can save you the significant commission rates many real estate agents command, for many, flying solo may not be the way to go–and could end up being more costly than a realtor’s commission in the long run. Buying or selling a home is a major financial (and emotional) undertaking. Find out why you shouldn’t discard the notion of hiring an agent just yet.
Better Access/More Convenience
A real estate agent’s full-time job is to act as a liaison between buyers and sellers. This means that he or she will have easy access to all other properties listed by other agents. Both the buyer’s and seller’s agent work full time as real estate agents and they know what needs to be done to get a deal together. For example, if you are looking to buy a home, a real estate agent will track down homes that meet your criteria, get in touch with sellers’ agents and make appointments for you to view the homes. If you are buying on your own, you will have to play this telephone tag yourself. This may be especially difficult if you’re shopping for homes that are for sale by owner.
Similarly, if you are looking to sell your home yourself, you will have to solicit calls from interested parties, answer questions and make appointments. Keep in mind that potential buyers are likely to move on if you tend to be busy or don’t respond quickly enough. Alternatively, you may find yourself making an appointment and rushing home, only to find that no one shows up.
Negotiating Is Tricky Business
Many people don’t like the idea of doing a real estate deal through an agent and feel that direct negotiation between buyers and sellers is more transparent and allows the parties to better look after their own best interests. This is probably true–assuming that both the buyer and seller in a given transaction are reasonable people who are able to get along. Unfortunately, this isn’t always an easy relationship.
What if you, as a buyer, like a home but despise its wood-paneled walls, shag carpet and lurid orange kitchen? 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. For all you know, the owner’s late mother may have lovingly chosen the décor. Your real estate agent can convey your concerns to the sellers’ agent. Acting as a messenger, the agent may be in a better position to negotiate a discount without ruffling the homeowner’s feathers.
A real estate 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 offer for any reason–including just because they hate his or her guts. An agent can help by speaking for you in tough transactions and smoothing things over to keep them from getting too personal. This can put you in a better position to get the house you want. The same is true for the seller, who can benefit from a hard-nosed real estate agent who will represent their interests without turning off potential buyers who want to niggle about the price.
Contracts Can Be Hard To Handle
If you decide to buy or sell a home, the offer to purchase contract is there to protect you and ensure that you are able to back out of the deal if certain conditions aren’t met. For example, if you plan to buy a home with a mortgage but you fail to make financing one of the conditions of the sale–and you aren’t approved for the mortgage–you can lose your deposit on the home and could even be sued by the seller for failing to fulfill your end of the contract.
An experienced real estate agent deals with the same contracts and conditions on a regular basis, and is familiar with which conditions should be used, when they can safely be removed and how to use the contract to protect you, whether you’re buying or selling your home.
Real Estate Agents Can’t Lie
Well, OK, actually they can. But because they are licensed professionals there are more repercussions if they do than for a private buyer or seller. If you are working with a licensed real estate agent under an agency agreement, (i.e., a conventional, full-service commission agreement in which the agent agrees to represent you), your agent will be bound by common law (in most states) to a fiduciary relationship. In other words, the agent is bound by license law to act in their clients’ best interest (not his or her own).
In addition, most realtors rely on referrals and repeat business to build the kind of clientèle base they’ll need to survive in the business. This means that doing what’s best for their clients should be as important to them as any individual sale.
Finally, if you do find that your agent has 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 prove that your agent has failed to uphold his fiduciary duties.
When a buyer and seller work together directly, they can (and should) seek legal counsel, but because each is expected to act in his or her best interest, there isn’t much you can do if you find out later that you’ve been duped about multiple offers or the home’s condition. And having a lawyer on retainer any time you want to talk about potentially buying or selling a house could cost far more than an agent’s commissions by the time the transaction is complete.
Not Everyone Can Save Money
Many people eschew using a real estate agent to save money, but keep 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. Many of these properties will be sold with the help of an agent. This means that the seller gets the keep the percentage of the home’s sale price that might otherwise be paid to the real estate agent.
However, buyers who are looking to purchase a home sold by owners may also believe they can save some money on the home by not having an agent involved. They might even expect it and make an offer accordingly. However, unless buyer and seller agree to split the savings, they can’t both save the commission.
The Bottom Line
While there are certainly people who are qualified to sell their own homes, taking a quick look at the long list of frequently asked questions on most for sale by owner websites suggests the process isn’t as simple as many people assume. And when you get into a difficult situation, it can really pay to have a professional on your side.