As the real estate industry evolves it seemingly becomes easier to market your house without the use of a professional. Knowing whether to use a REALTOR® or sell privately (FSBO) can be difficult to determine. It is important to understand what a good agent will bring to the table. Some of the main advantages of using a professional include: emotional objectivity, knowledge and marketing reach.
Before you decide to take on the job of selling your house privately ask yourself a few key questions:
1. Am I ready to emotionally detach myself from my house?
Sellers generally become attached to their home. Most consider their home a sanctuary where they create an environment of relaxation and exhibit their own style. It is difficult to let go of something that has become a part of you over the years.
A home becomes your canvas; a painting of your life. Albums are filled with photos from 10 years of holiday family events: Christmas mornings, Easter egg hunts and 4th of July barbeques with hamburgers, hotdogs and fireworks. Walking across the floor you instinctively know what boards will creak, how to get the toilet to stop running and how to open the screen door in a second flat when no one else seems to have a clue. While some things may have once seemed like an annoyance they are now a part of what makes a home your own.
Additionally, it can be difficult to maintain objectivity as buyers critique your home. Something you find endearing, that make it so special to you, may be the opposite for a buyer. It is important to listen to buyer criticisms and to be open to suggestions for improvement. A REALTOR® will serve as an emotional bridge helping you maintain an air of calm during the selling experience.
2. Do I have the proper knowledge to price my house appropriately?
The first step is reaching a listing price. Some sellers have an unrealistic idea of the price their house may sell. Whether your idea is low or high, your agent will play a crucial role in helping come to a sensible price range. After completing a comparative market analysis (CMA) and examining other data, they will offer their respectful suggestion as to the price range you’ll be able to obtain. Once the listing price has been settled the marketing of your house begins.
3. Am I able to market my home effectively?
The initial marketing of your house is the most important aspect of the marketing process. You’re not just selling a house, you’re selling the intimacy and peace a home should make one feel. Once your agent has viewed your house, he or she writes engaging ads focused on the key elements of your house that make it saleable. These ads may be placed in newspapers, magazines and the local MLS and are crucial to successfully selling your house. While you may be particularly fond of the 1970’s feel of your rust-colored carpet, a modern REALTOR® understands that today’s home buyer will be less fond of this characteristic. Instead they may focus on the uniquely large size of secondary bedrooms, the proximity of your home to parks and schools or significantly lower taxes. Even if you’re able to detach yourself from your house and market it appropriately, will you be able to tackle problems presented during escrow?
4. Can I anticipate and respond to problems quickly?
REALTORS® are trained to anticipate and avoid problems or respond to difficult situations quickly. They’ve likely handled countless transactions and run into near deal breakers throughout their careers. The ability to quickly handle problems during escrow can be the difference between a closed deal and one that falls through. Real property vs. personal property can present issues during the closing process. For example, if you are selling your home FSBO and do not stipulate your expensive, antique chandelier will be moving with you, you could run into trouble. An accomplished agent would ensure any questionable items be listed in the Bill of Sale.
5. Do you have time to show your home to buyers and will you make yourself scarce?
Most often FSBO homes do not offer access to their home via a lockbox. This cripples the ability for agents to show your home to potential buyers while you are at work. Further, home buyers generally feel intimidated by the presence of the seller during their visit. They rush through the house and tell you how wonderful it is even if they hate it. They feel uncomfortable looking through every nook and cranny even though this is one of the most important avenues a buyer must travel to make the decision to purchase your house. Hence, your presence hinders the sale of your house.
These are but a few of the issues sellers can run into during the selling process. Depending on your personal situation, knowledge and availability, it may be in your best interest to enlist the help and expertise of a professional real estate agent. In doing so you should interview multiple agents prior to signing a contract to ensure you find the agent that is best able to serve you.
Choosing a REALTOR® to Sell Your Home
You’ve decided to enlist the help of a professional to help you sell your home. Here are some tips to help you find a real estate agent that will serve your needs best.
1. Find at least three real estate agent’s to interview.
Ask friends, family and even neighbor’s for recommendations. Who did they use when sold their home? Would they use that same agent in another real estate transaction? Did they feel safe and trust the agent they used throughout the selling process?
Use the internet. Buyers are using the internet in increasing numbers to find homes. An agent with a website near the top of a search engine for competitive phrases will likely hold an edge over an agent that doesn’t. Further, it is a great way to evaluate an agent before you even pick up the phone to arrange an interview. Simply go to your favorite search engine and conduct a search. Try different variations like “Your City real estate”, “Your City REALTOR” or even “Your City home for sale”.
Check out the agent’s web site to see if they include a page that discusses their own achievements, experience and years in the industry. However, it would be wise to not discount an agent simply because they are new and don’t have experience. Generally, new agents have more time to help you and are eager to please.
2. Interview the top agents you’ve found yourself or were recommended to you by others. You should be prepared to ask relevant questions to help you determine if the agent will be a good match for you.
* Are you a REALTOR®?
It is usually in a seller’s best interest to find a REALTOR®, not just a real estate agent. REALTORS® generally work full time, are committed financially to their business and have been extensively trained to serve your needs. They are also members of the National Association of REALTORS®.
* How long have you worked the real estate market in this area?
Experience can certainly play an important role in helping you sell your house. New agents may not know how to deal with certain situations that occur during the transaction. An agent capable of handling difficult transactions can be the key to closing the deal.
However, remember new agents generally more time on their hands. They may be more vigorous in their mission to sell your house. In addition, they have extensive backing from their Broker during situations they may not be familiar with. Don’t discount new agents simply because they are new. Take into consideration whether the other agents you interview already have full plates.
* How quickly will you return my phone calls? Do you have a call back policy?
Some agents return phone calls during specific times each day while others will call you back as soon as they receive the message. Make sure the agent gives you one good phone number that you’ll be able to reach them with at all times.
* Don’t conduct your interview as a question/answer interview. Have a real conversation. You need to get a feel for the agent’s personality as well.
* Agents that answer your questions stating yes or no are probably not someone you want to deal with. Find an agent that will happily answer your questions extensively so you understand the details of your relationship from the beginning. This will help you avoid any problems down the road.
3. Ask the agent for references and testimonials from past clients. If they’ve been in the business long enough, they are bound to have quite a few. This can help you weed out an agent that may not be well liked. Don’t just look at the testimonials… READ THEM! How enthusiastic do the sellers sound? Were they ecstatic with the agent’s service? Have they used the agent more than once?
4. Compare the agents you interviewed to make the final decision of whom to hire. What do you like and not like about each? Make a list and discuss it with family and friends that have been through the process. They may have valuable tips to help you make the right decision.
Who is the Realtor Really Working For?
For the real estate investor who may be thinking about purchasing a new home, especially if this is their first time being involved with the real estate market, it is imperative to find a quality real estate agent. Knowing what questions to ask of the realtor is the only way to fully qualify them and find out whether or not they are someone who would be good to work with in the real estate transaction. However, for whom is the realtor working? Is the real estate agent looking out for the best interests of the seller or the buyer?
One of the most common misconceptions among both homeowners and homebuyers is that the realtor will be working solely for only the buyer or only the seller. This is actually not the case, so forget about even asking for whom the realtor is working. The real estate agent does not make any money unless the buyer and seller of the real estate reach mutually agreeable terms and finalize a contract.
The realtor's commission is only paid after a successful sale, the sale is only successful when both parties are satisfied enough to sign. While it may be true that the real estate broker will always have a personal interest and may even be prejudiced to a degree, it will always be in their best interest to find common ground between the buyer and the seller of the property.
If the homeowner is asking too much money for a piece of real estate, the realtor is going to have a difficult time selling it. Even if they could make a better commission, they will waste more time than it is worth showing a piece of property to people they know are not going to pay the asking price. It is not in their benefit to waste large amounts of time trying to put together a deal that is never going to work.
Conversely, if a potential real estate investor is making an offer that would not even entice a novice to accept it, the realtor would once again be wasting everyone's time including their own. By keeping everything above board and reasonable for everyone involved in the real estate market, the real estate broker is going to be able to provide better opportunities for everyone involved and ultimately will make more money. No matter which side of the real estate transaction the real estate marketer is on, the realtor is going to work equally hard to please them.
Realtor Information for Buyers
Finding the right Realtor
Purchasing a home is going to be the single largest financial investment for over ninety percent of all people today. Surprisingly, many real estate investors go in blindly, accepting as truth, every story which is told to them by every homeowner and salesperson they talk to. Finding the right realtor can be instrumental in making sure that the financial capital invested in real properties is not only well spent, but will produce the desired results as well.
A good real estate agent should be able to make the whole process of real estate investment a pleasing and rewarding experience. It is important to remember that the real estate agent is a sales person, and as such, some of them will try and push certain properties which they know will be more personally and financially rewarding for them. A very simple process can weed out real estate agents of this nature. Actively communicating with the agent and discussing what housing options are available that suit the needs of the individual. If the agent is unwilling to listen carefully to the needs of the real estate investor and will not discuss specific options, than another real estate agent should be on the priority list before any deals are completed.
The real estate agent should be very specific with questions and answers. This does not mean that they should not be friendly; on the contrary, being friendly is part of their job. It just simply means that if the real estate investor is looking for a home less than two blocks away from an elementary school, the real estate agent should not be showing them homes in a neighborhood that has no elementary schools.
Qualifying the real estate agent is just as important to the real estate investor as qualifying the buyer is to the real estate agent. Even for the first time homebuyer, there should be no fear of asking questions. Whether the real estate investor is looking at purchasing a home for the primary residence or looking at capital investments in order to establish a financial portfolio, finding the proper real estate agent can make the whole process much easier. Finding a real estate agent who can answer with specifics will most often result in finding a real estate agent who can provide for specifics.Flat Rate or Commission?
When deciding how to select a real estate agent, many homebuyers and home sellers rely solely on one or two rudimentary facts. The two most common forms of referral for a real estate agent are by word of mouth from a friend and pricing. Pricing however, is by far, the most common means that real estate investors will use to grade a quality realtor.
While "You get what you pay for" is an old adage and has its merits, it is not altogether true in this instance. Conversely, finding the most successful agent in the country who charges what would otherwise be exorbitant fees is not necessary either. How then, does the average homeowner or homebuyer find a quality real estate agent based on price?
While flat fee services do offer package deals for the real estate investor at what usually seems to be a reduced price, care must be taken to make sure that the contract is read in its entirety. This real estate contract will define exactly what is and what is not included in the terms and the conditions of the financial transaction. If the price seems to be too good to be true, chances are that there is a reason for this.
Even a real estate agent who works on a strictly commission basis needs to be looked at closely regarding any financial transactions however. Some realtors will include all costs in their one low price. Many other fees are often not associated directly with the sale of the real property however, so they will still be reverted to the fiscal responsibility of the homeowner or homebuyer. The money may still be coming out of the pocket of the one using these services no matter whom they choose.
Ultimately, while the price of a real estate agent and the inclusions and exclusions of any listing or sales contract for a home should all be examined very closely, the bottom line price is still a deceiving number in the big picture of real estate investments. For most homeowners trying to sell their house or homebuyers looking to purchase a primary residence or even investment properties, finding the proper realtor is more than just finding the proper price.
Choosing a REALTOR®
You’ve decided to enlist the help of a professional to help you find and buy a home. Here are some tips to help you find a real estate agent.
1. Find at least three real estate agent’s to interview.
* Ask friends, family and even neighbor’s for recommendations. Who did they use when purchasing their home? Would they use that same agent in another real estate transaction? Did they feel safe and trust the agent they used throughout the search and during the buying process?
* Use the internet. The internet is a great way to find professionals. Increasing numbers of agents have web sites readily available for you to evaluate before you even pick up the phone to arrange an interview. Simply go to your favorite search engine and conduct a search for real estate in the city you hope to buy. Try different variations like “City real estate”, “City REALTOR” or even “City home for sale”.
Check out the agent’s web site to see if they include a page that discusses their own achievements, experience and years in the industry. If you have special needs such as relocation from a different state, you may want to consider an agent that specializes in relocation needs. Or, if you are a senior looking for retirement property, you may want to consider hiring a Senior Specialist.
Don’t discount an agent simply because they are new and don’t have much experience. Generally, new agents have more time to help you and are eager to please.
2. Interview the top agents you’ve found yourself or were recommended to you by others. You should be prepared to ask relevant questions to help you determine if the agent will be a good match for you.
* Are you a REALTOR®?
It is usually in a buyer’s best interest to find a REALTOR®, not just a real estate agent. REALTORS® generally work full time, are committed financially to their business and have been extensively trained to serve your needs. They are also members of the National Association of REALTORS®.
* Are you a full time REALTOR®?
Part time agents might miss your dream house as it hits the market. If the market is hot, you risk losing your dream home. Full time agents are better options.
* How often will you inform me of new listings that match my criteria?
If an agent is not ready, willing and able to inform you of new listings matching your criteria the same day they hit the market you may want to consider a different agent. In hot markets homes sell quickly.
* How long have you worked the real estate market in this area?
Experience can certainly play an important role in helping you find and buy the perfect home. New agents may not know how to deal with certain situations that occur during the transaction. An agent capable of handling difficult transactions can be the key to closing the deal.
However, remember new agents generally have much time on their hands. They may be more vigorous in your home search than an agent currently working with many other buyers. In addition, they have extensive backing from their Broker during situations they may not be familiar with. Don’t discount new agents simply because they are new. Take into consideration whether the other agents you interview already have full plates.
* How quickly will you return my phone calls? Do you have a call back policy?
Some agents return phone calls during specific times each day while others will call you back as soon as they receive the message. Make sure the agent gives you one good phone number that you’ll be able to reach them with at all times.
* Don’t conduct your interview as a question/answer interview. Have a real conversation. You need to get a feel for the agent’s personality as well.
* Agents that answer your questions stating yes or no are probably not someone you want to deal with. Find an agent that will happily answer your questions extensively so you understand the details of your relationship from the beginning. This will help you avoid any problems down the road.
* If you have special needs such as relocation, first time home buying, or any others, tell the agent and ask if they have any experience and training with buyers like you.
3. Ask the agent for references and testimonials from past clients. If they’ve been in the business long enough, they are bound to have quite a few. This can help you weed out an agent that may not be well liked. Don’t just look at the testimonials… READ THEM! How enthusiastic do the buyers sound? Were they ecstatic with the agent’s service? Have they used the agent more than once?
4. Compare the agents you interviewed to make the final decision of whom to hire. What do you like and not like about each? Make a list and discuss it with family and friends that have been through the process. They may have valuable tips to help you make the right decision.
Why You Need a Real Estate Professional
The integration of real estate into the internet has revolutionized the way in which home buyers think. It has become easier for buyers to find a home on the internet in the past few years. Today, buyers often ask the question, “Why do I need an agent?”
Home buying is not something someone typically does often. It’s not an every day event or even a yearly event. It can be emotional and stressful, especially when you don’t know real estate and understand the laws, rules and regulations involved in transactions. You’ll need someone with knowledge to spell out the details of the transaction. Remember, this is one of the biggest purchasing decisions you will likely make. It is not something to take lightly.
REALTORS® Know Real Estate
REALTORS® deal with real estate issues and concerns on a daily basis. They have been educated extensively on the laws and regulations that influence the market. By law agents are required to get continued education to renew their license ensuring they are always up-to-date on the latest real estate news and laws. Further, as Professionals, they have access to tools and an endless array of contacts in the industry to help YOU find the perfect home.
The good news for buyers’ is that lenders will never lend more money than a home is worth. So, you can rest easy knowing that you will never overpay. But there are other problems that can haunt you if you’re not careful. For example, REALTORS® are trained to ensure all necessary disclosures are given completely and in a timely manner. There are many disclosures differing within each state. Some disclosures may include: natural hazards, mello-roos and bonds, smoke detector, lead-based paint, mold, wildfire zones, inundation zones, and Megan’s Law. Do you know all the required disclosures for your state? It can be difficult to keep up with the ever growing list of disclosures! Laws change regularly and if you’re not involved in the real estate market on a regular basis you may fall short of providing yourself ideal representation.
Other potential problems that buyers’ may encounter in the buying process involve homeowner association rules and regulations. For example, you’re a dog lover and have three but you just purchased a condo that doesn’t allow pets. What can you do? Nothing! You can sell the condo but that’s about it. You’re legally bound by your agreement with the association and you’re unlikely to change their rules as a new member.
Be smart: Know that as much as you think you know… there is always more to know. Trust that you’ll likely forget something in the process. Hiring a real estate agent will save you the trouble in your attempt to research every problem you may run into during the home buying process. You’ll not only save yourself time researching but help your family avoid potential risks.
Further, real estate professionals are trained and experienced in helping people find homes to suit their needs and their budget. While you may want to move to a certain area, you may not have the budget to do so. Or it could be the other way around. Perhaps you don’t realize you can afford to buy in a particular area. Hiring a REALTOR® to help you determine your ability to buy in certain areas will save you valuable time. Once you’ve been pre-approved for a loan your agent can begin the task of finding the perfect home for you. They will tailor your search criteria based upon different factors including, but not limited to:
1.Price range you’ve been pre-approved for
2.Number of bedrooms desired
3.Number of bathrooms desired
4.Areas and communities of interest to you
5.Special features such as pool, yard, garage, main floor bedroom, etc.
Your REALTOR® will then sift through all the results of homes matching your criteria to find the best homes to show. If there are many homes matching your criteria and in your price range, it can be grueling to look through them all yourself.
Once you’ve decided to hire an agent to assist you in the buying process, you’ll need to find an agent that will be able to understand YOUR needs. Not every agent will be the right agent for you.
Who is the Realtor Really Working For?
For the real estate investor who may be thinking about purchasing a new home, especially if this is their first time being involved with the real estate market, it is imperative to find a quality real estate agent. Knowing what questions to ask of the realtor is the only way to fully qualify them and find out whether or not they are someone who would be good to work with in the real estate transaction. However, for whom is the realtor working? Is the real estate agent looking out for the best interests of the seller or the buyer?
One of the most common misconceptions among both homeowners and homebuyers is that the realtor will be working solely for only the buyer or only the seller. This is actually not the case, so forget about even asking for whom the realtor is working. The real estate agent does not make any money unless the buyer and seller of the real estate reach mutually agreeable terms and finalize a contract.
The realtor's commission is only paid after a successful sale, the sale is only successful when both parties are satisfied enough to sign. While it may be true that the real estate broker will always have a personal interest and may even be prejudiced to a degree, it will always be in their best interest to find common ground between the buyer and the seller of the property.
If the homeowner is asking too much money for a piece of real estate, the realtor is going to have a difficult time selling it. Even if they could make a better commission, they will waste more time than it is worth showing a piece of property to people they know are not going to pay the asking price. It is not in their benefit to waste large amounts of time trying to put together a deal that is never going to work.
Conversely, if a potential real estate investor is making an offer that would not even entice a novice to accept it, the realtor would once again be wasting everyone's time including their own. By keeping everything above board and reasonable for everyone involved in the real estate market, the real estate broker is going to be able to provide better opportunities for everyone involved and ultimately will make more money. No matter which side of the real estate transaction the real estate marketer is on, the realtor is going to work equally hard to please them.
