It is not at all uncommon for people to try to cut costs where they can. Home buyers and sellers often think about saving money by not hiring a real estate agent. However, a professional real estate agent is a great asset who can provide invaluable knowledge and services to their clients, and actually save them significant hassle and money in the long run. Regardless of whether you’re a buyer or seller, it is important to understand what a real estate agent does and how their role can make navigating the process, from start to finish, a much smoother and less stressful transaction for you.
What is a Real Estate Agent?​​​​​​​
Real estate agents are licensed professionals who organize and facilitate real estate transactions between buyers and sellers. They are most often paid on commission, and may work independently or on behalf of another agent or broker. Agents who represent sellers are known as listing agents; agents who represent buyers are known as buyer's agents. Real estate agents can be both listing and buyer's agents, but typically not for the same transaction. In addition, real estate agents may have additional certifications or accreditations that can be helpful when buying or selling specific properties.
What a Real Estate Agent Can Offer
Where there are specific services and insight that a listing agent will provide the sellers, and a buyer's agent to the buyers, an innovative and competent real estate agent will not only be able to perform the role of intermediary between buyers and sellers, but offers an array of other valuable assets as well.
- Expertise & Resources: A professional real estate agent will always act in the best interest of their clients. They walk them through the entire home buying or selling process, while providing valuable expertise and resources along the way. Because agents work closely with a variety of other real estate professionals, such as mortgage consultants, home inspectors, attorneys, and title companies, they are able to provide their clients with referrals as needed. There are often a number of individuals involved in a home sale/purchase, and if complications arise during the process, your agent can recommend the best professional to help you with your specific situation.
- Laborious Tasks: Between work and daily life, most people don’t have the time or energy to multi-task the way a real estate agent does. Your agent has access to a wide range of potential buyers if you're selling, and a myriad of listings if you’re buying. They will conduct their search using your criteria to find homes with access to public transportation, priority school districts, or whatever factors are most important to you. As a result, this will save you countless hours of scheduling showings or searching endlessly for homes and properties.
- Market Knowledge & Access: An experienced agent will be familiar with market trends over a long period of time, helping them to recommend realistic prices to both buyers and sellers. An agent's knowledge of the local market and access to tools such as the multiple listing service (MLS) and sales statistics puts a wealth of market data at your agent's fingertips. This is information that is not available on consumer real estate websites.
- Negotiation Skills: Real estate transactions involve a multitude of steps from making and accepting an offer to completing inspections and repairs, and often requires skilled negotiations. A buyer's agent will develop an offer that reflects the market, and is sensitive to a client's budget, while a seller's agent will set a listing price that not only attracts multiple buyers, but also recognizes the worth of the property. Listing agents will negotiate various aspects of a home sale on behalf of their client, including negotiating the price of the home, losing costs, home warranties, fees, etc. There are legal actions that occur during the process of selling a home that fall on a real estate agent as well. If a home inspection or home appraisal reveals hidden issues with the property, an agent can help negotiate repairs and replacements.
- Closing Process: The closing process can be stressful and complicated for both buyers and sellers, but having a real estate agent's guidance can make it a smooth and easy transaction. Throughout the entire process, real estate agents have worked to keep the lines of communication and negotiation open between their client and the other party, again, representing their clients' best interest until the sale has been finalized. Whether you're buying or selling, there is a great deal of paperwork and it's the agent's responsibility to look over every document, ensuring accuracy and that all terms and conditions have been met before the home deed is transferred.
Why Not Do It Yourself?
While doing all the work yourself may save you on the commission rates, deciding to skip on a real estate agent may not be the way to go and could end up being significantly more expensive in the long run. Because buying or selling a home is a major financial (and emotional) undertaking, consider letting an experienced and reputable real estate professional be your start-to-finish guide. You’ll be glad you did!
