Those who buy and those who sell are on opposite ends of what can seem like a brutal process of tug of war. This is only natural as a house is the largest purchase that most people will ever make, and a few hours can make a difference by thousands of dollars. One is trying to lower the price, and the other is trying to get the best price, and they might both have credible arguments. The advantage of working with professionals is that they have a grasp of what is a fair price.
Realtors Know About Money
Someone wanting to sell their house has the option of listing the house themselves or conducting a private sale. This option is referred to as FSBO in the housing market, which means “for sale by owner.” Selling a house yourself is often done in order to avoid the commissions and fees of hiring a broker. This is not always advisable because often an agency gets a better deal.
A study in 2017 suggests that homes put on the market without an agent tend to sell for 30 percent less than those listed by a realtor. There are a lot of reasons for this, the first being that agents can put houses on popular lists and know more about drumming up potential buyers. The second is that they are professional negotiators, and the buyers might have their own negotiators to beat down the price.
The seller ends up paying all the fees, including the commissions for both the buyer and the seller. This creates an incentive for buyers to hire their own agents, which does potentially put an unrepresented seller at a disadvantage. It might be possible for a seller to get a good price if the housing market is on an upward trend, but going unrepresented is still such a terrible gamble.
A Realtor Pays Attention to Detail
For better or worse, a novice at home selling does not know much about the ins and outs of the industry. They do not know the terminology all that well and might be at a loss when it comes to reviewing documents. Since a major sale involves legal documents and a contract, it is essential to know how to deal with these. Someone with more experience could do a better job of handling applicable laws.
IT can also just avoid a headache to allow a realtor to read the documents. The purchase agreement alone might involve more than ten pages of legalese, and this does not include the national and local requirements for documentation. A realtor can both read the jargon and write documents in the same language. The seller does not have to worry about it if they hired an agent.
It is very dangerous to have to handle legal documents on your own. Not only is it very boring, but the legal text is far less forgiving than writing other types of documents. A mistake or the omission of entire statements could be very costly or force you to hire someone to rewrite it. It could end costing less to hire an agency, to begin with.
An example of this situation is when a buyer makes an offer, but they have to obtain a mortgage. It might be that the buyer has no choice but to seek out financing. This could create a legal headache if the buyer does not have an option to leave a deal if they cannot secure the home loan they are pursuing. Imagine trying to force a sale from a buyer who made the highest bid but who cannot secure a loan to match their promise.
At the very least, hire a broker to review all contracts. At the very best, hire an agent to write the contract and to negotiate better terms. Realtors can be worth their weight in gold, considering the value of the asset at stake.
Realtors Respect Privacy When It Matters
As a legal professional, a real estate agent has a responsibility to put the interests of their client first. This is known as a fiduciary duty, and it is actually a legal obligation in real estate. This duty includes respecting confidentiality wherever there is no reason not to.
There is no reason for real estate agents not to respect the most intimate details of your life. It is your own right not to have to tell them everything, but they might want to know some information in order to help sale a house. They are also going through your personal living space when they appraise the value of a home.
It is better to work with your own agent, as an agent representing a buyer has no legal obligation to respect the privacy and rights of someone on the other end of the bargain. A realtor on your side can give expert advice such as whether or not the other agent has a right to request certain types of information.
Real estate agents are held to professional accountability. This means that if they violate your rights and interests, they can be reported to organizations such as the National Association of Realtors. The odds of benefiting from realty services is much higher than the odds of being screwed by it. The odds of getting a raw deal is higher without representation.
Agents Keep Their Eyes Peeled
Buyers and sellers in the housing market both need to have a keen eye for what to look for. The buyer often has an idea of what they want and will look at the number of bedrooms and the exterior, among other things. The seller should know what angle to play when selling a house and should also look for pitfalls that might lower the market price of a home.
A realtor can identify small issues better than the homeowner in many cases. Being experienced in home sales, a realtor can think of many issues right off the tip of the head. They know that things like the roof and the central heating unit should be inspected before listing the house. They can identify problems like mold at a glance.
If there is an issue, then a realtor knows how to handle it when negotiating a price tag. If you are left negotiating yourself, then the buyer might try to knock off way too much money for an issue. Even better, a realtor can identify these issues first, so the buyer does not even have the chance to haggle.
The Bottom Line
It pays to know what you do not know and hire professionals who do. The most successful people in the world know how to capitalize on other people’s talent. For your part, it can make a difference in the cost and profit of selling what is likely your most valuable asset.
The City of Murfreesboro is committed to “creating a better quality of life”, a sentiment residents have adopted as their town motto. A dynamic, fast-growing city with a strong local economy and a rich heritage, Murfreesboro is representative of the rebirth of the Southeast. The city is located southeast of Nashville in Rutherford County, the geographic center of the state and one of the 50 fastest-growing counties in the United States. Colonial style single-family homes, estates and townhouses make up the real estate in Murfreesboro.
Murfreesboro provides its more than 98,000 residents with a family-oriented atmosphere and a strong sense of community. Neighborhood schools, community libraries, volunteer organizations, local recreational facilities and clubs are a few of the places locals meet to socialize and strengthen their community bonds.
In addition to appreciating their town’s fast-paced present and working toward the future, Murfreesboro residents remember the past. The city was the site of the Civil War Battle of Stone’s River and was the state capital from 1819 to 1826. Today, Murfreesboro remains the county seat. The town provides a traditional, small-town environment well suited for family life and comes complete with a bustling public square, as well as many of the amenities of a large city.