Why Should You Work with a Real Estate Agent?
When I started in this business, in the late 1990s, real estate agents were the only resource for information on what was for sale and what had recently sold. I remember carrying around those prized yellow bound books that were delivered bi-weekly to our real estate offices. (Now I’ve gone and given it away…. I am an “experienced” real estate agent.) Nonetheless, those books contained all of the listings that were for sale in the neighborhoods … they were GOLD … our secret weapons in your quest to buy your next home. Of course, the information was often outdated; as there was often a lag time or 2-3 weeks between listing or sale of properties, and the publishing of the next yellow book.
Furthermore, there was only an exterior photo of the home and sometimes, none at all. So, the real estate agents, who had toured the home during Brokers’ Open Houses, had the inside scoop on the layout and condition of the interiors of these homes.
Are Real Estate Agents Becoming Obsolete?
Fast forward to 2022; information is online and readily accessible! Anyone can do a search on the internet and come up with listings for sale, rather easily. The professional photography, virtual tours and videos that are common marketing tools used to showcase a Gold Coast condo or Lincoln Park House, make it easy for buyers to decide if a listing meets their criteria or not. Often, you can visit the properties on your“short list” during an Open House event, or by calling the listing agent directly, to arrange a showing. A little more research and you can come up with past sold listings, that can give you an idea of the market value in a building or neighborhood. You can find a lender on-line to pre-approve you and you may have a friend who is an attorney and willing to represent you. So, why do you need a realtor?
Millennials are masters of technology, and short cuts, and are used to doing their own research. They have come of age and are ready to buy real estate. But, they don’t naturally think to turn to a real estate agent to represent them. They figure that they can access listings on-line, text or email a listing agent and tour the properties without a buyer’s agent. Often, they think they can save money on the home by cutting out a buyers’ agent altogether.
Why Working with a Professional Still Matters!
Well, the job of being a real estate agent has evolved as well. We’re still providing information, giving home tours and writing contracts. But these days we study data, statistics and trends; interpret that information for our clients; and dispense advice and guidance based upon actual real time facts and circumstances, peculiar to a particular property, building or neighborhood. It takes paying attention to the market on a daily basis over a long period of time, to develop this kind of understanding and expertise.
We've Got Your Back
There is a value to working with one professional throughout the process, who can engage with you in a critical comparison of the properties on your short list and who will remind you of your “needs list”, when you become emotionally attached to a home because it has a built-in espresso maker. We can provide hands-on knowledge about what possible disasters to look out for that could be lurking in your “dream home”, or how you can quickly improve the equity in one home with just a little work, making that home a better choice over another.
When you are assessing the market value of a home, an automated market evaluation can be a good starting point, but nothing replaces a true comparison of properties based upon a review of the actual condition of each, and an understanding of the nuances of each sale. As your realtor, we can provide that insight.
We provide a proven professional network of support!
Seasoned real estate agents are dedicated business professionals working diligently to provide a stream-lined and exceptional experience for our buyers. We have had the conversations with lenders, worked side by side with attorneys, and participated in countless inspections, so that we are able to provide the best professional referrals to our clients.
Do you want to work with a lender with a proven track record of closing deals and providing first class communication, and education on the mortgage process, or do you just want someone who can give you a rate quote and a pre-qualification letter? Will your dad’s friend, who is an attorney and is doing your closing as a favor, be responsive and communicate with your lender, agent and the seller’s representative?
We partner with top-notch professionals so that the purchasing experience for our clients goes smoothly and so that when there is a bump in the road, the right people are in play to handle it. Communication is vital to a successful outcome, and we are the liaisons who ensure that communication is flowing.
Our network includes other Realtors as well. Believe it or not, a real estate agent’s reputation among other Realtors can actually influence your transaction. Often times, a real estate agent will prefer to work on a deal with an agent with whom they have had good experiences in the past. If they know and trust your agent, they know that they can count on your transaction to close. Never underestimate a great network.
Troubleshooting is a big part of our job!
Those of us with years of experience have actually “experienced” an endless assortment of personalities, negotiation styles, obstacles and red flags, and situations that one could never imagine happening, between the time you sign a contract to purchase a home, and the day you get the keys to your new residence. We know that price is not the only term that matters and can advise on how to submit an offer that will be most attractive to a seller. We’ve been in bidding wars for popular properties and can offer strategic advice on how to best proceed, or not.
As a buyer, especially a first-time buyer, you are likely to appreciate a realtor with this breadth of experience if you find yourself in a dicey situation that you had not anticipated. We can provide you the invaluable insight that you are not likely to get from your best friend who just got their license, or your hairdresser who also sells real estate on the side, or the listing broker who is contractually representing the seller, first and foremost.
Working with a real estate agent can actually save you money!
Why make your first big personal investment without guidance? First, you are not responsible for paying your buyers’ agent. You should understand that commissions are negotiated between the seller and the seller’s listing brokerage. The terms of their contract provides that the listing brokerage will pay an agreed upon portion of the commission, that they receive from the seller, to the buyers’ agent, should he/she bring a client to the table and the transaction is successfully closed. Therefore, appearing without an agent is not likely going to save you any money, and here is why:
- The seller will not automatically receive a rebate in the amount of the cooperating agent’s reserved commission. There is a contract in place between the listing brokerage and the seller and those terms have already been set.
- You have no standing to suggest any change in those terms.
- Technically, the listing agent will be entitled to the entire commission paid by the seller if no other agent is involved.
- Since the seller is still out the whole commission, they are not likely to agree to a price reduction just because there is no buyers’ agent to compensate.
- The listing agent may agree to reduce the commission they have agreed to receive from the seller, by some amount. But, they will expect to be compensated for the work involved in taking on the buyer’s agent’ share of the work. So, whatever portion is credited back to the seller, will likely stay in the seller’s pocket, and not impact your negotiation in a positive way.
Second, listing agents who take on the representation of both the seller and the buyer are not legally allowed to provide either side with information that they have received from the opposing side. For buyers that means that the agent will not provide you with a market evaluation or a suggested price to offer. Nor can they advise you on negotiation strategy. So, you are rowing this boat alone. Third, keep in mind that the listing agent is interested in getting you to buy THIS house, not the house that is right for you. Consequently, it is not surprising that often the buyer ends up paying more for the home than they should have and/or finds more issues with the home than they might have, if supported by their own agent.
WORKING WITH A BUYER’S AGENT IS ACTUALLY THE BEST DEAL!
The services of a buyer’s agent are the best deal you’ll ever land. 99% of the time, you are not out of pocket for their services and you will be assured that you have an advocate who is motivated to support you in finding and buying the best home for you. Realtors these days are happy to work according to your preferred style. If you like finding properties on your own, that is not a problem. But let us support you with “insider’s information” that could be invaluable to your decision-making process.
If you’re considering buying a home, please call us. We’ve done this before…… a lot! We have your best interests at heart and actually just want to make it easier on you.
