Real estate transactions have become synonymous with real estate agents. However, you may wonder what exactly these folks actually do. With the advent of online platforms and technologies, is there still a great need to hire a real estate professional?
The answer is almost always yes. There's a reason why the vast majority of home sales involve one or more agents. In fact, there are multiple reasons. A real estate agent truly provides a variety of services to help clients buy or sell properties. Here are some of the most important functions performed by agents.
Marketing and advertising
A real estate agent can help market and advertise a property to potential buyers through various channels, including online platforms, print and radio ads, and open houses. This is by far the biggest reason for a property owner to hire an agent. They are the best tool you can arm yourself with to get your home sold quickly and for the highest price.
There' something slightly counterintuitive about this point. Many people assume that the more technology and information available online makes it easier for them to forego using a seller's agent. Yet the opposite is actually true. The more new systems and channels there are, the more you need a a licensed real estate agent to help you navigate them. It takes experience and insight to understand where to find buyers; a good listing agent help cut through the noise to get the job done.
Additionally, many people forget to factor in a marketing budget if they sell FSBO (for sale by owner). A selling agent often puts their own money into marketing a property; an added bonus.
Negotiating
A real estate agent can help negotiate the terms of a sale, including the price, contingencies, and any other agreements between the buyer and seller.
Often times, negotiations in a residential real estate transaction can get tense. After all, it is someone's home where they (presumably) lived or will live; it's difficult not to let it become personal. This is when it's helpful to have a real estate broker on your side -- an intermediary to advocate for your best interests while being unaffected and unemotional about the process of making a deal.
Also, a good real estate agent has a comprehensive understanding of all the talking points in a sale. It's never totally about the final sale price! They understand where you can give and take to stroke the right balance. Getting real estate agents involved is a great way to help you get a negotiation done smoothly.
Handling paperwork
A real estate agent can help clients navigate the complex process of buying or selling a house, including completing and reviewing contracts and other legal documents. let's face it -- nobody wants to read the fine print over and over again, and real estate documents can very extremely dense, repetitive, and esoteric.
Understanding the technical language and procedural compliance is the primary reason an agent has to study to get their real estate license. Simply knowing the rule state's rules is the first step toward successfully navigating them. The real estate business is tough enough, having expert guidance through the minutia is an extremely valuable asset.
Providing market knowledge
Most real estate agents are familiar with the local real estate market and can provide valuable insights into trends, property values, and other factors that may affect the sale of a property.
While most folks can stay abreast of trends and developments in the national housing market, it's very tricky to stay current in the local market between neighborhood to neighborhood. The only folks who will have that type of on-demand insight are real estate brokers. They hear about comparable properties most home buyers or sellers never would. Just monitoring and indexing transactions comprise a huge prat of a real estate agent's day!
Assisting with financing
A buyer's agent can help their client find financing options and connect them with lenders who can provide the necessary financing to buy a property.
Most prospective buyers will require -- or at least want to speak with -- a mortgage lender. Property transactions are so large that it's important for buyers to get the best financial terms for them. Real estate agents work to make sure their clients' get the most bang for their buck; sometimes that means acting as a financial advisor beyond the simple act of buying a house.
Coordinating with other professionals
Your agent will also work with other professionals, such as home inspectors, appraisers, attorneys, and other real estate agents to ensure that the transaction goes smoothly.
It's easy to think that seller's agents vet potential buyers and speak to no one else during the process. Or that a good buyer's agent just sniff out property showings. However, agents are in constant dialogue with numerous parties. Real estate agents earn their reputation as master communicators.
Conclusion
Overall, the services provided by real estate agents can vary depending on the specific needs of the client and the terms of the agent's real estate company. It's always a good idea to clarify the services that will be provided upfront to ensure that you have a clear understanding of what to expect. The right real estate agent will be tremendous help to anyone selling or buying a home.
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