Advantages to using a Realtor
Many people don’t realize how complicated the process of buying or selling a home or property can be. It’s a process that requires a specialized set of knowledge and skills that most individuals don’t possess and many advantages to using a realtor. This includes negotiation and “people” skills, marketing know-how, detailed knowledge of real estate contracts and law, and perhaps most importantly, a keen understanding of your local market area and its current real estate trends.
This makes it surprising that so many people decide to strike out on their own when buying or selling a home or property. Think about it: You wouldn’t represent yourself in court if you were facing charges or being sued; rather, you’d hire a lawyer to represent you. Similarly, it doesn’t make much sense to go it alone when buying or selling real estate and the advantages to using a realtor out way the costs in most circumstances.
In the same way that an attorney would represent you in court, a Realtor represents you and your interests in the world of real estate. Your Realtor brings a unique set of skills and knowledge to the table that come from years of experience practicing the trade.
While buying or selling a home or property is something you might do several times in your lifetime, it’s something that experienced Realtors do as their full-time vocation. To realize all the advantages to using a realtor is also important to choose the right realtor and the right company.
The facts are that on average, a seller that goes on their own:
1. Nets LESS than using a full service (and full fee) realtor
2. Takes longer to get their home sold by a WIDE margin
3. Ends up listing in the end (over 94% will list eventually)
** Note that those who try for sale by owner and finally list with and agent, STILL net less than those who start of with a realtor.
Listing your home with brokers does NOT guarantee a sale!
The is a BIG difference between the various real estate brokerage companies. Many are very good with differences simply a matter of taste. I would say that is the middle third of companies, the common ones that have most the market share, a lot of agent affiliates and good brand recognition are similar enough to flip a coin. The ones on either end fall into two basic categories, full service, old school companies and discount, self service or flay fee brokerages.
The old school traditional companies are the ones that have been around forever, often local companies and many of their agents are in the business part time or are sun-setting in their careers. The majors issues are that the companies simply are not keeping up with business practices or technology. The may have a mentality that because they have always done is a certain way that it is the best way. These companies make it difficult for agents to work with them.
The other is the discount brokerage, they offer little service, or non at all, for a lower transaction costs. The offer very little in the way of help or marketing and while you may get a placement in the Multiple list system, agents from other companies don’t like to work with them which of course works against you. You do get what you pay for and in fact, statistics show that sellers that are not represented or under represented by a discount brokerage end up getting a lower NET from their sale and the sale takes longer.
Even if you choose a mainstream progressive company like Keller Williams, you are not guaranteed a great agent. EVERY company has a broad spectrum of agent skill levels and aptitudes so choose carefully even from within the same company. Time in the business and transactions are good general rules when selecting an agent, but if they are not good communicators, marketers and negotiators it just does not matter. There are many 7 – 10 year agents I would prefer to work with over 20 – 30 year veterans. The agent with many years experience and finely crafted sales skills is the best of both worlds. I work the other side of the transaction all the time with “senior, veteran” agents that while the may know the latest gossip in the neighborhood could not sell their way out of a paper-bag.
I have prepared a free report that discusses the pros and cons of trying to sell your home on your own, which is known as For Sale By Owner, or FSBO. Give me a call if you’re interested in learning more about this strategy and I’ll send it to you right away.