I hear and read about it all the time… Especially from sellers!! One of the biggest myth’s in Real Estate is…. YOU DO NOT NEED AN AGENT!
Why do we need an agent? First and foremost, there has been several Real Estate Companies in the past that have tried to — believe it or not — cut agents out of the transaction by offering flat fees. They get a listing on the MLS and that is it. The sellers deal with all the showings, offers directly, phone calls, all the problems, and worst of all deal with all the paperwork! NONE of those companies are still in business because guess what? We DO need Real Estate Agents!
There are tons of issues that can arise in a real estate transaction. When an agent is representing a seller it is their job to make sure the seller gets top dollar for their home. This happens only when the property is marketed correctly, including professional photos, aggressive marketing, taking care of the cooperating agents CORRECTLY (you agents know what I mean), and once the home is sold to make sure that the buyer’s agent performs the correct steps in a transaction.
When an agent is representing a buyer, it is the agents job to guide the buyer through the jungle of a real estate market. Markets are always full of sellers with their heads in the clouds with their list prices. The buyer’s agent makes sure the buyer does not over pay for a home and that the client does not lose their appraisal & home inspection fees. This agent is also responsible for ordering the home inspection, making sure the lender gets a copy of the purchase contract, making sure the lender and the title company are on the same page so the appraisal can be ordered in a timely fashion. Make sure the client gets a copy of the HOA resale docs (ordered by the listing agent) and knowing all the contingency periods (due diligence period, appraisal, financing, HOA are all contingencies that need to be tracked). The agent needs to make sure the buyers loan stays on track and at the end when it all comes together it closes. One of personal biggest values to a buyer is keeping the train on the tracks. This is VERY important in a real estate transactions!
There are so many ways a deal can cancel. A private person trying to close a real estate transaction with no training and no experience is almost impossible. It does happen from time to time but I would bet there are many mistakes happening!! And real estate is NOT something you want to make a mistake with… It can cost you everything!!
A solid real estate agent should NOT be viewed as a cost but as an asset… We can put way more money in your pocket than what you are paying out. You definitely get what you pay for in this business. I will cover this on another blog post!! But cutting an inexperienced agents commission to save a buck in a real estate transaction is one of the worst things you could do!!
Hire an agent that has a ton of experience and pay him what he asks VS. paying an inexperienced agent who is cutting their commission to get the deal I would bet that the experienced agent will put more money in your pocket at closing… Period!!!!