Every so often when speaking with a buyer or seller the topic arises, “Do I really need a real estate agent?”
Well the short answer is no you don't. Depending on the circumstances, a person's experience, and a person's comfort level, you can absolutely buy or sell a home without a real estate agent. But why take the risk?
The real question should be “Why wouldn't you want help from a real estate agent?” I think the real issue is not having a thorough understanding of everything that's involved in a real estate transaction not to mention the potential pitfalls and financial risks.
My top ten reasons to use a real estate agent are:
1. Market knowledge. A good real estate agent is constantly studying the real estate market. We have to, for ourselves and for our clients. Determining a homes market value is absolutely essential in order to make sure our buyers don't pay too much, and that our sellers meet their goals when selling their home.
2. Serve as a guide through the process. Most people will buy and sell a handful of homes (their personal residences) throughout their lifetime. Most people are not doing that everyday, however. Doesn't it make sense to work with someone that is involved with real estate to guide you around potential pitfalls in some of the largest financial transactions you're likely to perform?
3. Effectively market a property. As real estate agents, we have access to a cooperative database that contains the majority of homes for sale, the Multiple Listing Service (the MLS). Additionally, we know many techniques to ensure that buyers and sellers are able to connect and meet their respective needs.
4. Help you evaluate contracts. When you work with a real estate agent everything is done through contracts. This is a very good thing. For your relationship with the agent it sets expectations and details what will be done. For the relationship between buyers and sellers it ensures that there are no misunderstandings.
5. Explain financing. Good real estate agents can explain financing options and help in identifying qualified lenders.
6. Monitor the market. As conditions in the market change a qualified real estate agent keeps their clients informed to help them in making educated decisions.
7. Network to help clients meet their goals. A successful real estate agent is likely a member to many groups and organizations, both physical and virtual (online). This is how I learn new techniques, exchange ideas, and provide better service to my clients. This is another great tool for finding the right buyer to a property or getting the word out on homes we're selling.
8. Handling offers. What is a fair market price? How do you know if you're paying too much or an offer is too low? Experience is key. As is using all the tools at our disposal to secure an equitable transaction.
9. Negotiate. Negotiating is an art. You get better at it through practice (experience). You can't be afraid to ask for what you want, and then work out the details of how both parties will get there.
10. Being objective. Because real estate transactions typically involve a substantial amount of money, emotions often get in the way. An effective real estate agent is objective and that objectivity helps their clients in making wise and informed decisions.
There are certainly many more reasons why you would want to work with successful, experienced professionals. If my car is making a strange noise, I know that a good mechanic is the best place to go. If I'm not feeling well, a doctor will be able to help me heal or be cured. If I have a legal issue, the first person I'd be talking to is an experienced lawyer.
A real estate transaction is no different. Well maybe slightly different since there are typically several hundred thousand dollars exchanging hands and a long term commitment being defined. An effective real estate agent is indispensable in helping you get to where you want to be.
