7 Reasons to Use a Real Estate Agent
Posted by admin | Real Estate | Posted on October 24th, 2009
Some people choose to use a real estate agent and some people choose to go it alone. One thing I have noticed in recent years is that a number of seasoned investors looking in a new city, a good agent rookie, while investors tend to go alone. I even had a number of real estate agents seek my help when they move to our city. Why some of these seasoned investors choose to work with an agent? Below is a list of 7 benefits of using an agent.
1. Understand potential restrictions of the property. I recently heard a story of a friend in the office of the city of Texas in Austin. A couple had saved for their retirement. They wanted to retire and live in the hill country. They were the exclusion auctions. Was purchased at auction a batch of 500,000. It had great views and they were going to build houses on it. Research has been the lot before the auction and are areas SFR which means a single family residence can be built there. After purchasing the lot they started plans to build his retirement home. At this time the lot was discovered 25 years in the floodplain. My friend in the development office of the city explained that the lot can not be built and is basically useless.
2. Learn about new developments that might affect a properties value. A good realtor will know of proposed new developments that might affect different properties in which a buyer is interested. If these developments are positive or negative can be valuable in weighing different housing options.
3. Find potential problems with a property. It is always a good idea to have a home inspector to see a potential home. However, a Realtor is a good first line of defense to see if a house has problems. An agent can know about common problems, such as foundation or electrical, that affect a particular neighborhood.
4. Understanding the specific contracts. When you buy or sell a home that they are entering a large personal transaction. Helps to have someone by your side that deals with these types of operations on a daily basis. An agent can help you understand contracts and can explain what is typical for your area. The most common error in which I see is that there are buyers to enter into a contract which is not atypical for your benefit. For instance a seller will sign an offer that has an option period that is 4 times more than is typical. A buyer might put in offers on multiple properties with long-term option. The buyer must wait and see if the market value. If the market has appreciated the buyer acquires the house and now undervalued price. If the market has fallen away buyers.
5. Misperception of a benefit of going it alone. Buyers often think that by not using a buyers agent who will receive better treatment from the seller. Situation in most of the list agent asks for 6 percent of the seller. If a buyer comes with an agent listing agent splits the 6 percent with the buyers agent. If an unrepresented buyer comes the listing agent keeps the 6 percent as a whole. For the seller, sale by owner (FSBO) often think they are saving money by avoiding a listing agent. Nationally, FSBO homes sell for 14 percent less than agent listed homes in the neighborhood. Besides a lot of FSBO buyers still end up with an agent involved. There is also money spent on advertising. Since an agent has experience marketing homes the agent often can spend money more effectively on advertising. Agents know that advertising tends to produce most of the sources of potential buyers.
6. Save time in the search listings. In search of ads without an agent can take up large chunks of time. When you look with an agent you can see several houses in a few hours. When you only have to call the listing agent for each house and wait at home for the agent to arrive and open the house. In addition agents often know houses which are not listed or may have already identified potential problems with a particular house of interest.
7. Ensure safety. When a house is listed with an agent, the agents coming to the house usually has to enter This allows the listing agent to keep track of all the parties to enter the house. Since your business is on the line, players are more likely to protect the house from damage or theft. For various reasons, usually not a good idea to have random people who do not know come into your home. Often, sellers only have one phone number, your phone, but it could be your home, a friend’s house, a phone or even a stolen phone.
The search for a home can be stressful and difficult but it can also be fun. If you decide to seek a home on your own or with a Realtor is a good idea to be a great care to find your dream home.