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Benefits Of Hiring Realtor For Home Buyers And Sellers

Gustan Cho Associates
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Benefits Of Hiring Realtor For Home Buyers And Sellers

This BLOG On Benefits Of Hiring Realtor For Home Buyers And Sellers Was UPDATED On May 10th, 2019

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 Home

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
Gustan Cho Associates Mortgage News

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

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

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