Are you on the fence about whether or not to use a real estate agent for your next home purchase? Are real estate agents worth the commission they charge? According to the National Association of Realtors, 87% of buyers recently purchased their homes by using the services of a real estate agent. To help you decide if a real estate agent is a good fit for your next purchase, we will explain what exactly a real estate agent does.
What is a Real Estate Agent?
A real estate agent is a real estate professional that is certified to assist in the sale and acquisition of real estate in a specific location in North America. The National Association of Realtors is the entity responsible for certifying and regulating all things related to real estate agents. Realtors earn a commission of 6% of the purchase price of the home for sale. If there are dual agents in a deal (one representing each side), the two agents split the fee and get 3% commission each.
Also called realtors, real estate agents can assist either the buyer or seller of a property. Here we will show the benefits of using a realtor for both purchases and sales of real property.
I. Buyer’s Agent
You have to be aware of the reality of your local real estate market. Prices differ based on location. Every county handles its real estate matters in the way they see fit. There is no one-size-fits-all process across the board, but realtors follow a national standard that remains consistent in all states.
A realtor can conduct a market analysis on the subject property and tell you what it is likely to be worth based on comparable property values. This service keeps you from wasting time on properties that are not worth your while.
During the real estate process, there will likely be a time when you must present an offer to the seller. This is when the negotiation skills of your real estate agent come in handy. Your agent will represent your wishes on the negotiation side of the deal relay messages and offers to both parties. A house payment calculator can help you crunch the numbers a little finer.
One of the primary services that a realtor provides is the drafting of the purchase agreement used to sell the property legally. The purchase contract is a legally binding document that takes knowledge of local real estate codes to complete correctly.
II. Seller’s Agent
If you are selling property, you need to know that you are realistically pricing your home. The current market may have changed drastically since you originally purchased your property. A realtor can efficiently conduct a market analysis on your home to give you a realistic price range based on similar homes.
Realtors list homes they have for sale on the multiple listing service (MLS) databases. This database is accessible to all realtors at any time. Your property can easily be placed on the MLS by any realtor.
There is a reason realtor serviced are sought in a majority of home sales. Now that you see exactly what roles realtors play in the home buying and selling process, you can better decide if you should hire a realtor for your next deal.