Benefits Of Hiring Realtor For Home Buyers And Sellers

This Article Is About Benefits Of Hiring Realtor For Home Buyers And Sellers

Buying or selling a home can be both an exciting and stressful process.

  • For home sellers, the question arises whether to sell home with or without a realtor
  • Saving to pay the 6% real estate commission to a real estate agent is often the biggest stress and concern for the seller
  • Average home prices are around $200,000
  • 6% of $200,000 is $12,000 which is not chump change
  • However, realtors do a lot of back end work for both home buyers and sellers
  • In my opinion, the realtor’s commission is nothing compared to the services they perform
  • Realtor’s commissions are paid by the home seller
  • The buyer’s realtor will get half of the total real estate commission paid by the home seller
  • The listing real estate agent will get the other half
  • If the listing real estate agent finds his or her own home buyer on the property that is listed, the listing agent will get the whole commission

Benefits Of Hiring Realtor When Buying A HomeBenefits Of Hiring Realtor

First time home buyers and seasoned home buyers should always get a real estate agent on their home searches.

  • Buyers can easily go online and to sites like Zillow.com, Realtor.com, and Trulia.com and shop for homes
  • They can contact the listing real estate agent
  • The fact of the matter is that the listing agent represents the home seller
  • May not have the best interest at heart for buyers
  • The listing agent may just show their listings and not the particular home that particularly suits buyers
  • HIring a real estate agent, buyer’s realtor, the real estate agent will interview buyers and ask a series of questions such as the type of home that suits their needs
  • Such questions may be the following:
    • number of bedrooms
    • number of bathrooms
    • square footage
    • lot size and yard space
    • storage area
    • number of garages spaces
    • location of the home and neighborhood 
  • The real estate agent will also ask the price range of the home
  • Property taxes vary from city to city, county to county, and it will be a major factor in determining the home buying power
  • There are areas where property taxes are $10,000
  • Other areas property taxes may be substantially less like $4,000 for the same property type and price range
  • Property taxes are taken into account by lenders when they calculate debt to income ratios
 

Benefits Of Hiring Realtor Is They Bring Experience And Knowledge

Benefits Of Hiring Realtor is they bring knowledge and experience to the table. Benefits Of Hiring Realtor is for both home buyers and sellers. A real estate agent is priceless when buying or selling home.

  • A real estate agent will offer a list of properties that meet criteria
  • Will consistently email properties that come on the market
  • Will eliminate looking for properties that are not suitable
  • Real estate agents are extremely knowledgeable about the following:
    • comparable sales in the area
    • accessibility to public and private schools
    • transportation
    • shopping
    • restaurants
    • entertainment
  • Real estate agents have no emotional ties to the homes they are showing
  • Buyers will get an objective opinion from a realtor
  • They can pinpoint out the advantages and disadvantages of a particular home as well as the particular areas buyers are looking at
  • The real estate agent will negotiate the best possible price with the seller’s real estate agent
  • Buyers realtors will have buyers best interests in mind when negotiation of purchase begins
  • They will discuss with offers and counter-offers until a final price is agreed upon
  • The best part of hiring a buyer’s real estate agent is that there is no cost to the home buyer
  • This because the sellers pay for the real estate agent’ commissions

Benefits Of Hiring Real Estate Agent When Selling Home

What can be the benefit of hiring a real estate agent when selling your home

The benefits of hiring a real estate agent when selling a home are the knowledge of the market listing agents have. Listing agents can help sellers price home at the right price. Listing agents will market home and their goal is for a quick sale for the best offer possible. Their mission and goal are to attract the maximum amount of potential home buyers.

  • Sellers cannot overprice home
  • This because the majority of the home buyers will need financing
  • With financing comes an appraisal requirement
  • If the home does not appraise out, the home buyer will not get the financing for the home unless sellers lower the sales prices
  • A professional realtor will do his or her due diligence on what recently sold in the area
  • Comps that are comparable to the subject property will be carefully reviewed
  • Listing agents will try to get the maximum price for the property
  • They will make sure home is not priced lower than competitors
  • A real estate agent will figure out the net cash proceeds from a property sale
  • They will be taking into account the following:
    • the current outstanding loan balance
    • property tax proration sellers need to credit the home buyer
    • closing costs sellers will be liable for
    • potential owner financing sellers may offer to make the deal happen
  • A real estate agent will market home whether is via the internet marketing, initiating open houses, and contacting all nearby realtors to maximize exposure to property
  • Keep in mind that most homes that are properly priced and marketed sell within 90 days
  • After 90 days of listing a property, the real estate agent needs to re-analyze the subject property
  • Need to see why there are not enough showings and why there is no contract on the property yet
  • A real estate agent may recommend home staging
  • The Realtor may suggest doing minor repairs
  • May even advise sellers to take the property off the market and cancel the listing on the MLS for 30 or more days and re-list the property after some minor repairs have been made

Qualifying Home Buyers

One of the major advantages of hiring a real estate agent when selling a home is that they will field all potential home buyer’s phone calls. They will screen potential home buyers and make sure they are armed with a solid pre-approval letter from a licensed mortgage lender.  Some real estate agents call the mortgage lender from the pre-approval letter to make sure that the home buyer is solid.  A real estate agent will also advise sellers when if there are multiple offers home and recommend who to choose and how to price it.  Just because a home buyer comes in with the highest offer does not mean that they are the most qualified home buyer.  The real estate agent will want to know what loan program the home buyer is approved for, whether it is FHA, Conventional, USDA, or VA or even hard money loans.

Related> Benefits of hiring a real estate agent

Related> Benefits of hiring a realtor

29 Comments
  1. Eli Richardson says

    I’m glad you talked about how a real estate agent helps you get an objective opinion during a transaction. Recently, my mom mentioned she wants to invest in real estate. She wants to rent her house and purchase other properties, so I’ll be sure to share this article with her. Thanks for the advice on realtors and how they’re helpful for property transactions.My VA lender that gave me preapproval with which I signed a contract has now denied my approval because my dti is 52. They won’t accept that my son makes payments to me for two vehicles in my name. He had bad credit so I got them but we showed a year and a half of Venmo’s. He pays me $1600 a month. They won’t count it

  2. Kate Hansen says

    I loved how you mentioned that they can help you sell your home at the right price. My cousin was telling me last night about how she and her husband want to look into selling their home since they plan on moving in a couple of months, and they were wondering if they should hire an agent to help them. I’ll make sure to pass this information along to them so that they can know the benefits of hiring a real estate agent when selling their home! Hello! My name is Tommy. I am wanting to see if you can help me get approved for a VA loan. I already have my certificate of eligibility. I can be reached through this email address,

  3. maallik patel says

    Very informative information from Alex Carlucci and Michelle McCue of Gustan Cho Associates. Have been following http://www.gustancho.com for the past twenty four months and have learned a wealth of information from the detailed blogs.
    This article is very nice and contains useful information. I really appreciate your efforts for this article.

  4. Max Jones says

    Thanks for explaining that a home will typically sell within 90 days if it is priced right. My brother is looking to buy a home because he just got a new job. I’ll share this advice with him as he looks for a way to sell his current home and find a new place to live. I like to thank Gustan Cho Associates for the very latest and greatest mortgage and real estate information.

  5. maallik989 says

    That’s great as i have personal experience of selling my home through real estate agent .To hire a real estate agent has many benefits for selling your home because agent took all the responsibility about the matter and you just need to be communicate with agent time by time but you have to take care about one thing that you have hired a professional agent.

  6. Braden Bills says

    I’ve been trying to get a new home, but I’m not sure how to choose one. It makes sense that working with a realtor would be really beneficial for me! I love that they can help me choose a place based on what kind of public locations I’ll be able to easily access from there.

  7. Taylor Hicken says

    I currently have poor to fair credit
    I have been working on it to raise it and it just seems stagnant
    I have credit cards and I make a decent wage

  8. Adam Golightly says

    My sister has been thinking about buying a new home because she would really like to have more rooms for her kids. She would really like to get some help from a professional in order to find the right home. I liked what you said about how they can ensure that the home buyer is solid by getting a pre-approval letter from a mortgage lender. Fha streamline. Non-credit qualifying. The current mortgage rate is 7%!!!!! Original note originated 2002 original loan amt 103,500. And the value of 105k. The payoff is 65k. No late payments in the last 24 months… Just looking to reduce the rate to get the payment down. I’m the cbrwr on the loan with my mom we will both remain on the loan we both live here as this is our primary and only residence.

  9. Thomson Smith says

    It’s cool that you elaborate on how a real estate agent can help you find the right house to buy. My wife and I want to purchase a single-family home this summer, so we’re thinking about hiring a real estate agent to help us. I’m going to look for a good real estate agent in the area that can help buy a single-family home. Wife’s uncle is selling her grandma’s house. He is asking 100k, we have 20k in the bank for the down payment. Need a bank statement loan, credit score isn’t the best.

  10. Kristofer Van Wagner says

    Hello Gustan,

    Hope you are doing well. Writing with an update on the local commercial real estate market.

    Most CEOs report that their employees will return to the office by fall 2021. But the increased pace of vaccinations has not yet led to a meaningful return to regular office usage, with only 22.5% working at the office.

    That said, leading indicators in the last quarter suggest we will see a significant return to the office and surge of leasing activity in the next 12 months:

    Office leasing tours increased by 250% in Chicago.
    New business formation increased by 20% in Illinois.
    35% fear they will contract COVID, a record low
    The increase in touring is driven by pent-up demand and deal hunters. But big challenges still lie ahead: nearly 85% of respondents to DLA Piper’s “State of the Market Survey” anticipate two years for office building vacancy to return to pre-pandemic levels.

    PS – Please let me know if my commercial real estate brokerage services may benefit you or anyone you know.

    Troy Golden

    President
    Golden Group Real Estate

  11. Braden Bills says

    I’m trying to get a home bought, but I’m not sure how to go about it. It makes sense that I would want to find a real estate agent to ensure that I do things properly! It’s so nice that they can help out with projects like this. I would like to do a cash-out refinance. The total loan would be $165,000. I do have a 30 day late in the last year but only one in the last 12 months.

  12. Thomson Smith says

    My credit score is at 570, I have 10% down, could you qualify me for FHA loan?

    1. Gustan Cho, NMLS 873293 says

      Yes, you can. We allow credit scores down to 500 FICO. However, any borrower with under 580 credit scores requires a 10% down payment versus a 3.5% down payment.

  13. Jr. Jhonthan says

    I simply wanted to write down a quick word to say thanks to you for those wonderful tips and hints you are showing on this site.

  14. Kaleigh Smith says

    It’s great that you point out that a real estate agent can screen prospective buyers for you when you intend to sell your home. My wife and I want to put out house on the market this summer, so hiring a real estate agent sounds like a good idea. I’m going to see if there’s a good real estate agent in the area that we can use.
    Good morning,

    My husband and I are relocating from CT to AR and are trying to purchase a home in Arkansas with a VA loan. We were refered to the VA lighthouse program to help us increase our credit score to be approved for a loan. We thought we were finally ready – house sold, jobs obtained, credit scores up and then we were told there was a medical account in collections on my credit report that had to be deleted. This account is erroneous and I’ve been fighting it for a year and a half and have a lawsuit pending against the creditor and collection agency. I have all documentation from my insurance company proving that I don’t owe this debt – but I can’t get it off my credit report because the collections agency won’t allow me to pay it and refused to remove it because I filed a complaint against them with CFPB. So – we are between a rock and a hard place because this is the only thing standing in our way so I am looking for alternative options. Can you help us?

    Thank you,

  15. Jonathan Hansen says

    Thank you for mentioning that a real estate agent can help you set the correct price for your home when you want to sell it. I’m thinking about putting my home on the market this summer, so contacting a real estate agent sounds like a good idea. I’m going to look for a good real estate agent in the area that can help me sell my home.
    http://www.markmeers1.com/

  16. namrata says

    This is very advance knowledge. it is effect on our business. if you want give more service about real estate then visit https://mantrarealty.in/
    Thank you

  17. Braden Bills says

    I’m trying to get a piece of property, but I’m not sure how to do it. It makes sense that getting a realtor would make this a whole lot easier for me! They would have plenty of experience to ensure that the process goes smoothly. https://kayrogan.com/

  18. Conrad O'Connor says

    My husband and I are attempting to buy a used mobile home and 1.3 acres of land. The land and home are considered to be inside the City limits of Meridian MS although the school district for the home is in a county school zone area. The home was built in 1992 but has been well cared for and is in good shape. The land alone is worth $15k and the home would be worth $15k. We are post Chapter 7 bankruptcy and are attempting to rebuild our credit. Both my husband and I have credit scores ranging from the 580’s to 640’s and have sufficient steady incomes. However we do not want to run our credit multiple times!

  19. Conrad O'Connor says

    Hello!

    My name is Conrad O’Connor. I read about your mortgage company helping individuals with poor credit. I wanted to see if you would be able to help me purchase a home in Colorado where I live. I am a school teacher with student loan debt. I have been told in the past that I can’t receive financing with my student loan debt. If there is a way to receive financing, please inform me of the way in which I need to proceed. Thank you for your time!

    1. Gustan Cho, NMLS 873293 says

      We can help you. Please reach out to us at [email protected] with your contact information.

  20. Erika Brady says

    Thanks for the advice on why you should hire a realtor. My friend’s sister graduates this fall and wants to purchase a home once she finds a job. I’ll let her know that it’s best to hire a realtor to help with this.

  21. Rachel Frampton says

    I live in Michigan and I have a VA loan. Two years ago I filed chapter 13. I made all payments on time. Is it possible to refi and take cash out to payoff ch. 13 debts (possibly more to invest in a business).
    What credit score is required? Which version of FICO score is used? Should I dispute any credit report info at all?

  22. Daniel M. Barron says

    Thank’s, it’s a great thing that this article suggested the importance of 6 steps to repaying reverse mortgage after death

  23. Thomas Clarence says

    cash out refinance please. my credit score with Experian is 517.

  24. Hailey Miller says

    It really helped when you said that real estate agents are knowledgeable about the market and can help sellers price their homes for a quick sale. My partner and I are planning to sell our old beach house in July since we’re having a hard time paying the bills this pandemic. I think we should look for a real estate expert who can give us the best possible offer as it’s really hard for us to let go of the house because of its sentimental value. Good morning,

    I have poor credit currently and would like to get back on the path to a home purchase. I was wondering if you have a team or dept that could provide some advice to see if a VA loan would be feasible within the next year. Thanks

  25. Kristofer Van Wagner says

    This post made an excellent point that one of the benefits of hiring a real estate agent is that they are experienced. By hiring them to look for real estate, we will be under expert guidance. I will definitely keep this information in mind when I plan on buying a house. I have very poor credit *(580), but have steady income and am ready to purchase. Please help. Having a tough time finding a lender that will trust me and go off VA loan qualifications. Thank you.

  26. Lauren Smith says

    Thank you for sharing this informative blog. Sometimes, agents can help you find the right buyers or sellers for your home that you may not be able to discover on your own. Also, if you’re looking for such a service, Gustan Cho Associates is the right place to go. Hello,
    My name is Megan. I recently moved to Austin Tx looking to get into MLO.
    I Had some questions regarding if there is any disqualification such as bad credit? Not having banking experience etc..

    Hope to hear back from you,
    Megan Y

  27. Mia Evans says

    I like that you pointed out that a professional realtor will be able to find what is recently sold in the area. I will definitely hire one to help me find the right property for my preferences and budget. It has been the reason why I am saving my money for about three years, so I hope they can help find the best deal for me in the area. http://www.wynmoorcondos.com/

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