Advancing technology has transformed home shopping. More than 80 percent of prospective buyers begin their home search online. A consumer might be tempted to “do it yourself,” buying or selling without a professional real estate agent to save on an agent’s commission. But agents provide vital services in real estate transactions. Here’s how an agent adds value when you’re buying or selling a home.
The value of an agent: marketing
Underestimating the value of the agent’s services is the biggest risk consumers make when trying to save on commission. Agents do more than play matchmaker between buyer and seller. Simply put, a real estate agent is a gateway to a world of potential buyers and sellers.
It starts with marketing. Only professional real estate agents can list a property on the Multiple Listing Service (MLS) to give it widespread exposure. Once the property is listed there, it becomes visible to all subscribing agents in the market.
Agents use their brokerage firm’s website and their own personal sites to post your listing. They arrange for professional photography and a video tour of the home. They network with other agents to match the home with the right potential buyers. They manage showings of the home, which simplifies the seller’s life while the house is on the market..
The value of an agent: contracts, addenda and reports
A real estate sales contract is many pages long, with dozens of sections, paragraphs and clauses that may be confusing to lay people. Numerous addenda and supporting documents are also part of the deal. Agents have extensive training and experience navigating these forms. Buyers and sellers who try to figure out these complexities alone risk making very costly mistakes.
The value of an agent: home service provider networks
Once a house is under contract, the agent has a network of professional service providers that both seller and buyer will need. He or she can put together the right team to best serve the client.
A buyer needs to hire a professional inspector to determine the home’s condition and point out needed repairs. Depending on the inspector’s findings, the buyer may need to get follow-up opinions from foundation, roofing, heating and air, or other contractors. Agents have connections with solid pros in these occupations. The seller also may need some of those contractors if he or she agrees to make repairs the buyer requests.
The value of an agent: financial matters
- Both sellers’ and buyers’ agents bring negotiating expertise worth thousands of dollars to your transaction, which will help you get the best deal.
- Once the buyer and seller are under contract, the seller’s agent delivers the contract and escrow money to the title company. The latter provides valuable insurance that assures both parties that the property has no legal encumbrances that could block closing.
- If the buyer doesn’t already have a mortgage lender, her agent can recommend a good one. The agent can help the buyer prep for the application and qualification process.
- Both the seller’s and the buyer’s agents help their clients make sense of the blizzard of closing documents. The agent checks the closing statement that spells out the debits and credits for both parties to ensure accuracy.
Adding up the value
The average home seller or buyer may deal with real estate transactions once in a decade. Real estate professionals deal with them daily and deliver experience and knowledge you’ll likely find to be worth every penny of their commission.
Related – Benefits of Using a Real Estate Agent to Purchase a Home
