Most major cities across the nation are experiencing a housing boom, and record setting sales numbers for homes for sale in 2021. This fast-moving market is due in part, to low federal interest rates, and lots of people moving to places like Florida, to retire in the sunshine. Not to mention that folks are able to sell their homes quickly, with the average listing’s days on market to under 30-days.
So why would you want to hire a real estate agent who will take a large commission for their services? If the market is so great, wouldn’t your property sell fast anyways?
What Real Estate Agents do?
It is true, you can list any property for sale by owner, and not have to pay any real estate commissions, whatsoever. But before you decode that realtor are too expensive, let’s take a closer look at what exactly they do.
Realtors should be local experts in the area, and communities you want to buy or sell properties within. They should be able to properly guide you from thinking about selling, to listing your home on the MLS, and then, getting your sale to closing. That is a lot more work and effort than most people think.
A realtor may tell you to list your home for less money than you initially wanted to. There are times that getting lots of buyers to the property quickly, means that you will get multiple offers and hopefully get higher offer amounts because of the competition.
In the same spirit, a realtor may have you list your home for way more than you originally planned too. You might not even realize that your property is worth more in the current market. In this case, a real estate agent could save you thousands of dollars, if not more.
Realtors will coordinate the title company, inspection company and timeframe, and help you do anything necessary to the property, or your overall situation, to make it easier to achieve your goals.
How Much do Real Estate Agents Cost?
If you choose to hire a real estate agent when you’re looking to buy a house, there is typically no cost involved, since agents mostly get paid by the sellers. It is highly recommended that you do hire an agent when purchasing real estate because their knowledge and advise can be priceless yet cost you nothing.
When you want to sell your property and list it on the open market, there are some important things to consider before you hire an agent.
- How much do they charge to list?
- Are they experts in your specific neighborhood?
- Can you verify that they have been successful selling homes in your area?
Read all their online reviews to see what type of experiences others have had using that agent. Understanding how their past sales have gone, will provide you with an excellent way to gage if they will be right for you.
Bottom line is that the fee agents make is negotiable, but typically is around 6%, which is 3% for the selling agent and 3% for the listing agent.
How do Real Estate Agents Get Paid?
Don’t worry if you want an agent to list and sell your property, you will not need to pay them anything until the sale closes. In fact, the title company will disburse the funds once your deal gets closed and they will pay the real estate agent’s Broker at that time, on your behalf.
However, you will need to pay for things such as inspections, HOA fees, security systems, appraisals, or repair needed, before you list. This is the type of information that you will be able to tackle with your agent. Make them earn their payments. If you aren’t happy with an agent’s representation, tell them so.
Agents want listings, so don’t let them do anything that you do not agree with, just to make a sale. Most agents will listen to their sellers and inform them when there is something important to discuss.
Can a Realtor Help with Mortgages?
No, a realtor can not help you find the best mortgage to fit your financial situation. Unless they are licensed to sell real estate and also close home loans, which many agents are. However, if your realtor is not a state licensed mortgage broker, the only thing that they can do is refer you to their preferred home loans specialist. In many cases, this referral works out, and if not, you can always find your own home loans by yourself, online.
There are many different things to consider and actively handle while buying or selling real estate. Most agents are extremely helpful, professional, and worth their weight in gold. However, there are always those agents who don’t have their client’s best interests at heart. Hopefully you have seen the things to ask them, to ensure you won’t get anything but the absolute best representation possible.
Remember that when you’re selling a house, you are the boss and want to get the results you expect. The agent you hire should be an extension of your goals. Many times, friends, and family can refer you to a great agent. Moreover, any agent you hire, will provide important guidance you may not even think you need, but it can save, or make you a lot more money than just going it alone, like a shot in the dark.