Agents can either be a help or a hindrance in the selling and buying process. These are the things you need to know before hiring an agent.
The most important financial transaction you will ever make is buying or selling a house. You can trust a real estate agent to guide you, but you could lose valuable time and money if you hire the wrong one.
Both top-notch agents follow the rules and those who take shortcuts, just like in any other profession. You can avoid having a negative experience by researching and asking lots of questions.
Sometimes they work for both of them.
A single agent may represent both the buyer and the seller in some states. A dual agency is a type of dual agency. While it can speed up the process by allowing buyers to communicate with one agent, it can also lead to conflicts of interest. It’s called dual agency. Buyers and sellers have different goals, so how can one agent best serve both?
You may not ask, and a dishonest agent won’t tell you. This could mean that you lose your agent’s unwavering loyalty and the expectation of them pointing out problems with the contract or property — two big reasons buyers and sellers should each have their agent.
They don’t know how much your house is worth.
If they believe it will convince the homeowner, a deceitful agent may exaggerate or understate the value.
An appraiser who is a professional can give you the best estimate of your home’s value. An appraisal can be a great way to set realistic prices for your home, even though it might cost you $300 or $400.
They are willing to negotiate a commission.
Although listing agents might expect you to accept their commission, which is usually around 6% of the sale value, you don’t have any obligation. It is possible to negotiate the commission rate, even though it might be uncomfortable. It would help if you discussed this before you signed any contract. Ask specific questions about the commission rate and what level of service you can expect to receive in return.
It’s important to understand that listing agents often split the commission with buyers’ agents when negotiating. Each agent may have to pay a portion of the commission to their brokerage firm.
They don’t know if an open house will be helpful.
Some agents may emphasize open houses, but statistics show that only 7% of buyers found their home through an open house or yard sign in 2017. This is according to a National Association of Realtors survey.
The decision to hold an open house is ultimately yours. Before you make a decision, weigh the benefits and risks carefully.
Open houses are a great way to be introduced to dual agency. Miller says that NAR has a policy on “procuring cause,” which explains who made it possible for you to purchase the home. According to this rule, the full commission is awarded to the agent who introduces you to your home.
They don’t always have the best service providers.
Your agent may not always recommend the best or most cost-effective option. The agent may recommend a friend or offer an incentive to refer them.
Choose your real estate agent carefully
You can hire for the skills that you require. Agents can handle both the selling and buying sides of a transaction. However, some agents are more skilled in one area than the other. This can be a great advantage. Find a buyer’s representative if you are buying. They will take the time to help you find what you need. Look for a listing agent with a track record of closing on time and fetching a high price if you are selling.
Get a real estate attorney involved. Although not required by law in every state, it is a smart idea to have an independent attorney review all contracts and agreements. Unlike agents, real estate attorneys can legally advise on all aspects of the purchase agreement.