The recent development of services that assist homebuyers and sellers in completing their own real estate transactions may have you wondering if employing a real estate agent is becoming a thing of the past. While completing the job yourself might save you money on commissions that many real estate agents charge, for many people, doing it alone is not the best option—and may end up costing more than a realtor’s commission in the long run. Purchasing or selling a house is a significant financial (and emotional) commitment. Learn why you shouldn’t rule out the possibility of hiring an agent just yet.
More Convenience/Easier Access-Real Estate Agent Is Still Necessary
The full-time work of a real estate agent is to serve as a middleman between buyers and sellers. This implies he’ll have quick access to all other homes posted by other agents. Both the buyer’s and seller’s representatives are full-time real estate professionals who understand what it takes to close a deal. If you want to purchase a house, for example, a real estate agent will seek homes that fit your requirements, contact the sellers’ representatives, and schedule appointments for you to see the houses. You’ll have to play telephone tag on your own if you’re buying on your own. This might be especially challenging if you’re looking for-sale-by-owner properties.
Similarly, if you want to sell your house on your own, you’ll have to field calls from potential buyers, answer inquiries, and schedule visits. Keep in mind that if you’re always busy or don’t react soon enough, potential purchasers will move on. Alternatively, you may find yourself hurrying home after scheduling an appointment only to discover that no one shows up.
Negotiating is a challenging task-Real Estate Agent Is Still Necessary
Many individuals dislike the concept of going through an agent to complete a real estate transaction, believing that direct negotiation between buyers and sellers is more transparent and allows the parties to better protect their own interests. This is most likely true if both the buyer and seller in a given transaction are normal persons who can get along. This isn’t always an easy connection, unfortunately.
What if you adore a house but detest its wood-paneled walls, shag carpet, and flamboyant orange kitchen as a buyer? If you’re working with an agency, you may voice your distaste for the existing owner’s decorating abilities while also ranting about how much it’ll cost to renovate the house without offending the owner. It’s possible that the owner’s late mother picked the decor with care. Your real estate agent can inform the sellers’ agent of your concerns. As a messenger, the agent may be in a better position to negotiate a lower price without upsetting the homeowner.
A real estate agent can also play the role of the “bad guy” in a transaction, avoiding bad blood between the buyer and seller from sabotaging the transaction. Remember that a seller has the right to reject a potential buyer’s offer for any reason, including just because they despise his or her guts. An agent can assist you by speaking on your behalf in difficult negotiations and smoothing things out to avoid them becoming too personal. This may put you in a better position to obtain the home of your dreams. The seller, too, might benefit from a tough real estate agent who can promote their interests without alienating potential purchasers who wish to haggle over the price.
Contracts may be difficult to manage-Real Estate Agent Is Still Necessary
A real estate agent can also play the role of the “bad guy” in a transaction, avoiding bad blood between The offer to purchase contract is designed to safeguard you and guarantee that you may back out of the transaction if certain requirements aren’t satisfied if you decide to buy or sell a house. For example, if you want to buy a property with a mortgage but neglect to make financing one of the selling conditions—and you aren’t accepted for the mortgage—you might lose your deposit and be sued by the seller for failing to fulfill your part of the bargain.
A competent real estate agent is aware of which conditions should be utilized, when they may safely be withdrawn, and how to use the contract to protect you, whether you’re buying or selling your house.
Agents in the real estate industry are not allowed to make false statements
They can, in fact, do so. However, because they are certified professionals, they face greater consequences than a private buyer or vendor. If you engage with a licensed real estate agent under an agency agreement (i.e., a traditional, full-service commission arrangement in which the agent agrees to represent you), your agent will be obligated to a fiduciary relationship under common law (in most states). In other words, the agent is required by law to work in the best interests of their customers (not his or her own).
Furthermore, most realtors rely on recommendations and repeat business to create the sort of clientele required to stay in business. This implies that doing what is best for their customers should be as essential to them as making a certain transaction.
Finally, if you discover that your agent has gotten away with lying to you, you may pursue legal action through your agent’s broker, a professional group (such as the National Association Of Realtors), or even in court if you can establish that your agent has breached his fiduciary obligations.
When a buyer and seller work together directly, they can (and should) seek legal advice, but because each is expected to act in his or her own best interests, there’s nothing you can do if you discover later that you were deceived about numerous offers or the home’s condition. By the time the deal is completed, having a lawyer on retainer every time you want to talk about potentially buying or selling a property might cost considerably more than an agent’s commissions.
Not Everyone Is Able to Save Money
Many individuals avoid employing a real estate agent in order to save money but bear in mind that neither the buyer nor the seller will profit from not having to pay commissions. For example, if you are selling your property on your own, you will price it based on the sale prices of similar homes in your region. Many of these homes will be sold with the assistance of a real estate agent. This means that the seller keeps the portion of the home’s sale price that would normally go to the real estate agent.
Buyers who want to buy a property sold by the owner, on the other hand, may feel they may save money by not using an agent. They could even anticipate it and make an appropriate offer. However, unless both the buyer and seller agree to divide the savings, they will be unable to save the fee.
While some people are eligible to sell their own houses, a short glance at the extensive list of frequently asked questions on most “for sale by owner” websites reveals that the procedure isn’t as straightforward as many people believe. And having a specialist on your side may be quite beneficial when you find yourself in a difficult position.