Advantages: Working with a Real Estate Agent
- Laicey Harris
- Mar 12, 2023
- 7 min read
Updated: Mar 16, 2023
A guide detailing the advantages home buyers and sellers have when partnered with a real estate agent.
A quick look at the profile of recent home buyers and sellers.
A solo journey to purchasing or selling a home one can most certainly accomplish. But lets face some facts. Unless you sell or purchase a home frequently, knowing just whats involved can be a task in of itself. Unfortunately buyers and sellers can fall short in one area or another, partly due to the lack of knowledge and expertise in the processes of purchasing and selling a property. In the end, what was deemed to be a major accomplishment turns into a headache, costly mistakes made, and worst case scenario, ends up being terminated. Never fear; the journey doesn't have to be difficult or complicated. Partnering with a licensed real estate professional has been proven to eliminate hiccups throughout the process.
86% of recent home buyers purchased their home through a real estate agent or broker Reference
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A look at the profile of recent home buyers and sellers
47% of home buyers started their search online, looking up properties for sale as their first step. 60% of which was conducted on a cellular phone, compared to 34% conducted on a computer
Reaching out to a real estate agent as a first step was done by 34% of home buyers
Buyers typically searched for a home on average 10 weeks, up from an average of eight weeks compared to 2020 and 2021 data.
38% of buyers partnered with a real estate agent that was referred to them by family and friends, while 10% found an agent when inquiring about a specific home found online. 12% used the realtor they used from a previous transaction.
86% of sellers worked with a real estate agent to sell their home, a noted 10% sold on their own
80% of sellers only contacted one real estate agent before finding the "right" one to work with
When it came to offering incentives to attract buyers, only 20% of sellers fit this category
Sellers typically lived in their home for about 10 years before deciding to sell
"Definitely recommend" their agent for future services came in at 73%, with about 27% of sellers recommending their realtor four or more times after selling their home.
"For sale by owner" sellers median sales price was noted at $225,000, a significant difference from the median sales price when listed with a real estate agent at $345,000.
Advantages: For Home Buyers
When you go to a store to purchase an item, sometimes you need assistance from an employee. You find an employee and ask if they know about the product you are inquiring about. It is their job to assist you when needed, and more over, they get paid whether you decide to buy or not. A genuine real estate agent is more than a hired professional. A real estate professional is a true server of their community, providing top notch service, not just because its their job, its their passion. Whats more, real estate agents pose as much more; your therapist, cheerleader, interpreter, and voice of reason, just to name a few. Detailed below will put concepts in perspective on the advantages of working with a realtor.
Market expert: A skilled real estate agent will know the in and outs of the market they service. You wouldn't go on a city tour with a guide who doesn't know the area. Searching for the right home is the same. Your agent will stay current on market trends, such as determining how the home your interested in compares to other homes in that particular area, and what neighborhoods have prospective properties that meet your must haves list, budget, and borrowing capabilities.
Researcher: Whether you have a strict budget, or even a particular neighborhood you desire to be in, there may be hundreds of homes within that criteria. Scrolling page after page, listing after listing can become tiresome and time consuming. A realtor will gather pertinent information of your requirements, narrowing down the options to the best choices. Taking care of the busy work, all thats left is to go view the homes in person if desired.
Objectivity: As home buyers move closer to closing the deal on the perfect home, the excitement can cause some to move forward with rose-colored glasses. Having a realtor by your side, offering unbiased counsel, is crucial at this point so you don't make a costly mistake by missing potential red flags. A prepared agent will recommend plans of recourse, not limited to scheduling a home inspection, or incorporate contingencies to be sure you don't get blindsided.
Negotiator: Real estate professionals understand that the asking price sometimes wont be what a buyer actually pays for a home. There are legal and practical nuances when it comes to negotiating. A skilled realtor offers guidance, based on market conditions, before submitting an offer, such as if an offer is too high, too low, and even convincing a seller to cover certain expenses like repairs and part of closing costs. Your real estate agent will put his or her skills to work to get you the best deal possible. Tip: determining whether the market favors buyers or sellers holds leverage while negotiating.
Advisor: You've finally made it to the closing table and ready to sign the paperwork and take possession of your new home. The purchase of a home is too big a deal to breeze through the documents on your own. As a resource of knowledge, your realtor can guide you to verify details are accurate and you understand exactly what your are signing, as some documents hold legal responsibility to you, the buyer.
Advocate: When you agree to work with a real estate professional, that relationship holds a special meaning. Your agent has a fiduciary duty to you. This means that they hold all regards to ensuring that your best interest is at the forefront of every aspect in purchasing your home. Loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care and diligence is what your partnered real estate agent provides to you.
Key takeaway for home buyers. You don't have to pursue your goal of homeownership alone. When you collaborate with a real estate agent, its more than just hiring a professional, you get, overall, someone who cares. Your first contact is the beginning to a long lasting relationship.
Advantages: For Home Sellers
Nobody knows the value of your home better than yourself as the homeowner. This has been your sanctuary for years. So when you make the decision to sell your home, it is the thought that you are the most qualified candidate to do so. And you are absolutely correct. For sale by owner is one of the various options to gain a return from your investment, however, research has shown that houses listed as such fall short on numerous marks. Lets face some facts, the planning of details, marketing, and paperwork associated with selling a property can cause headaches, pointless interactions, and possibly a long drawn out process to close, if not selling at all. There is light at the end of the tunnel. The partnership with a real estate agent boasts many advantages, one main factor being the fiduciary duty to you, the seller. Detailed below are some key benefits in working with a realtor.
Market Expert: A real estate agent who is an expert in the local market comes with great knowledge. Thus aiding in providing you with important information, and more over, keeping your sales expectations in line with current market trends. Providing details by conducting a market analysis can help you decide the right time and price point to list your home, creating the best opportunity for the necessary foot traffic that produces a qualified buyer. One way real estate agents accomplish this is having access to multiple outlets to advertise your home listing.Additionally, real estate agents know what attracts potential buyers, so they can create a marketing plan accordingly.
Objectivity: Real estate agents offer a fresh pair of eyes when it comes to identifying potential issues that may present to prospective buyers. Whether it be a leak that went unnoticed or an outdated aesthetic that may warrant a costly repair, the realtors unbiased recommendations can help ensure your property presents as appealing as possible to buyers. If major repairs are not feasible, your realtor may recommend to offer seller concessions or other incentives to the buyer if such an issue arises.
Impressions: First impressions are usually the lasting impression. When prospective home buyers view your home, whether it be via pictures on the internet or in person, they are envisioning themselves living there. Working with a qualified agent, they have been through this rodeo, receiving feedback from buyers on what they liked versus what could've been improved. Preparation for open houses and showings takes effort and sometimes a little money, so a skilled realtor can offer pre-listing to do lists to get your home ready for debut. If you don't have the time yourself, through connections, your agent can suggest industry specific service providers to complete these tasks.
Time Saver: Another great advantage when working with a real estate agent is the reduced time your home may be listed on the market. DOM, known as Days on Market, is an important factor for home sellers to keep in mind. On average, listing with a real estate agent can reduce the amount of time it takes your home to sell. The main advantage to this is sellers will see a higher return on their investment; compared to selling on their own.
FSBOs typically sell for less than the selling price of other homes; FSBO homes sold at a median of $225,00 last year, significantly lower than the median of agent assisted homes at $345,000. Reference
Negotiator: Negotiating is not just done on the buyers end. Your skilled real estate agent will work to make sure that you, the seller, don't get lowball offers. When you decide on a good price point to list at, this will attract qualified buyers, creating the opportunity to receive offers that coincide with the value of your home. Now a trip down memory lane, at closing you probably remember the dreaded paperwork involved when you purchased your home. Reviewing accuracy and proper documentation is another task completed by your realtor. As an expert, your agent will aide in the organization of documents and provide overview to ensure a smooth transaction.
Advocate: When you agree to work with a real estate professional, that relationship holds a special meaning. Your agent has a fiduciary duty to you. This means that they hold all regards to ensuring that your best interest is at the forefront of every aspect in selling your home. Loyalty, obedience, disclosure, confidentiality, accounting, and reasonable care and diligence is what your partnered real estate agent provides to you.
Key takeaway for home sellers. All in all, the time and effort that goes into selling a home can make or break a deal. The stress that can come with several aspects doesn't have to exist. The knowledge and expertise of a real estate agent can, in most instances, provide a smooth transaction process.
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