Ask anyone, especially if you’re new to the real estate world – buying and selling a home is often a painstaking, time-consuming and emotional journey – well worth it when you finally get the keys to your dream home.
It is much more difficult to achieve this dream without the help and guidance of a professional, which is why it is very important to have a real estate agent in your corner. As a licensed professional, often with years of experience, the agent plays an important role in facilitating a real estate transaction between a buyer and a seller that ensures the safety of consumers and often prevents potential problems before they arise.
What if I want to sell or buy a home myself?
While it may seem like flying alone is better than paying an agent a commission, in most cases the costs can end up increasing. Think to yourself; with everythingIng I keep going, can I research the market, study and understand local real estate laws, effectively market my home and select buyers? If you’re already on a full-time basis, chances are you won’t have the bandwidth to take on another. Plus, you don’t know what you don’t know, and there are pitfalls in the process that you can accidentally fall into.
Most agents generally do not show For Sale By Owner (FSBO) ads. There are problems and risks associated with entering into transactions when there are no licensed professionals to represent either party. Time is money, and agents prefer to do business with other professionals who balance strategy and performance, each representing their clients in good faith. Even if an agent brings a buyer to FSBO listing, sellers will instantly find themselves at a tactical, strategic and informational disadvantage compared to an experienced agent.
Why do you need a real estate agent
Buying or selling a home is one of the largest financial transactions you’ll ever make, so it’s best to leave it to a professional to keep things running smoothly. Here are six reasons why working with a real estate agent is worth it:
1. Expert on the local housing market
The more experienced the agent, the more he or she will have an understanding of local property market trends, competitive listing prices and what makes them attractive offers. They will spend time each day researching active and pending listings so that they are always up to date on what is available.
The agent relies on his experience and skills to sell or list properties at the best price with the most favorable terms. The agent will spend time working with their client, discussing and understanding their needs, and knowing the intricacies of the housing market in order to get what they want.
2. Minimizes legal and other risks.
There are many legal documents related to the painstaking nuances that a realtor has experience with. Agents are knowledgeable about local real estate laws, which saves you time and research on your own. An agent will guide you through the legal process to make sure you are not breaking any local real estate laws when selling your home.
In addition to the legal process, agents will help you minimize other risks associated with buying or selling a home: financial risks, valuation risks, verification risks and dozens of other risks arise with every purchase or sale, and experienced agents know how to do it. deal with them or have connections with those who can.
3. Valuable connections
Agents have access to a variety of listing services and over time they have built up an extensive network with other realtors. The connections and relationships they have developed over their careers can bring more attention to your home. These are valuable resources that would not otherwise be available without an agent.
Agents also build an extensive network of trusted professionals on whom they have relied for many years. These professionals include lenders, inspectors, traders (roofers, plumbers, etc.), lawyers, architects, accountants, and many more that you may need to consult in the process.
4. Area Expert
No one knows where is the best place to live, eat and play like a real estate agent. Based on your preferences, they can recommend the best geographic areas and areas to live in. You can think about where the great schools are, what the crime rate is, how they see the area changing over the next decade, etc. When it comes to specific demographic information, agents are limited in what they can share directly due to fair housing laws, but they can provide you with resources for all of this information. While we are discussing this topic, if you are planning to move to Phoenix or are already living here and want to move to another area, check out our recommendations for best places to live in the Phoenix metro area.
5. Professional home marketing
The agent will take time to study the local housing market and trends in the area in order to establish a competitive asking price. They will use compelling keywords to list your property, prepare adware, decorate your home, coordinate screenings, and many will hire a photographer for free to take beautiful photos and videos of your home to post on ad sites and social media. …
6. Excellent negotiation skills
Experienced realtors are experienced negotiators and work hard on your behalf to ensure you get the best deal that meets or exceeds your goals. As mentioned earlier, time is money, and agents can identify and weed out unqualified buyers, such as dreamers or nosy neighbors, who slow the process down. The agent will elude the noise and make the most of the time with people who are serious about buying your home.
How much can you expect to spend on a real estate agent
The closing process can be a little confusing, so it is important that an experienced agent can help you close the deal.
The seller (not the buyer) pays a commission to their real estate agent at the time of the close of the deal.
Closing costs may vary slightly, but are typically 6% of the final sale price. Typically, this commission is evenly split between the buy and sell broker.
For example, if a house is sold for $ 500,000, the seller will pay $ 30,000 in commissions to both brokerages.
In Arizona, both buyers and sellers can expect to pay closing costs, although the seller usually pays a significantly higher amount due to commissions. Closing costs include several fees and costs of a real estate transaction, including appraisal, credit report, legal fees, government processing fees, title insurance, escrow fees, lender expenses, processing and underwriting fees, and prepaid property taxes and insurance.
The average closing price in Arizona for a seller is 1% of the final home price. So if we stick with the previous example of selling a $ 500,000 home, then 1% of the closing cost means the seller covers most of the $ 5,000. The cost to the buyer to close the deal, especially when financing a purchase, typically ranges from 1.5% to 3% of the purchase price.
Trevor H. Halpern, JD is the # 1 Independent Agent in Phoenix. North & Co… and founder Halpern Residential real estate group. As a Phoenix native, Halpern’s deep knowledge of both people and property has allowed him to be successful with clients throughout the city. A graduate of ASU College of Law, Halpern prides itself on offering high-level strategy, effective negotiation, and precise tactical execution. Halpern has sold over $ 100 million in properties since 2011 and has ranked among the top 1% real estate agents in the Greater Phoenix area since 2016.