Buying or selling a property is a significant financial decision. Whether one is a first-time homebuyer, a seasoned investor, or a seller looking to maximize the profit, the guidance of a qualified real estate agent can be an invaluable asset. Since, the process of buying or selling a home is marked by excitement, anticipation, and sometimes, stress and involving complex decisions, substantial financial commitments, and numerous intricate details, this journey benefits greatly from the guidance and expertise of real estate agents. Real estate agents possess an in-depth understanding of the ever-changing real estate market, including the nuances that vary from neighborhood to neighborhood. With their finger on the pulse of market trends, they guide owners to make informed choices, ensuring that their property aligns perfectly with their goals. Moreover, real estate agents are skilled negotiators, adept at securing the most favorable terms for their clients. Their experience in navigating the intricacies of contracts and paperwork helps individuals sidestep potential pitfalls and ensures that their transactions proceed seamlessly. In the journey of buying or selling property, a real estate agent is your unwavering partner, dedicated to helping you achieve your real estate aspirations with confidence and ease.
What are the Benefits?
The advantages of utilizing a real estate agent include:
Expertise and Market Knowledge
Real estate agents are professionals with deep knowledge of the local housing market. They understand the trends, neighborhoods, and property values better than anyone. According to the National Association of Realtors (NAR), 89% of buyers purchased their homes through a real estate agent or broker in 2020. This statistic underscores the importance of expertise in real estate transactions (NAR, 2023). Also, NAR reported that homes sold with an agent in 2020 typically went for 99% of the listing price, compared to 93% for homes sold by owners directly (NAR, 2020).
Access to Exclusive Listings
Real estate agents have access to a wide range of exclusive listings that may not be available to the public. These properties might be a perfect fit for your needs but could remain hidden without an agent’s assistance. In a competitive market, this access can make a significant difference. Around 63% of sellers opted to engage the services of an agent they had previously worked with when buying or selling a home (NAR, 2022).
Negotiation Skills
Negotiating is a crucial aspect of any real estate transaction. Real estate agents are skilled negotiators who can help people secure the best possible deals. Moreover, a seasoned real estate agent possesses the ability to identify potential issues in a prospective home that might otherwise remain unnoticed. They meticulously review home evaluations and conduct firsthand assessments of the property. In cases where improvements are necessary, the real estate agent can adeptly negotiate, whether by negotiating repairs as part of the agreement with the seller or by securing a price reduction to accommodate future renovations.
Zillow’s research reveals that 36% of sellers initially try to sell their homes independently; however, they often encounter difficulties that prompt them to eventually enlist the assistance of a real estate agent (Zillow, 2021). Also, in 2020, sellers who used agents sold their homes for a median price of $295,000, while those who sold on their own sold for a median price of $217,900, as per NAR (Warford, 2023).
Time and Convenience
Selling or buying a property is a time-consuming process. Real estate agents can save you a significant amount of time and effort by handling tasks such as scheduling showings, coordinating inspections, and managing paperwork. According to the NAR, 15% of sellers’ most challenging tasks are understanding and completing paperwork (NAR, 2023).
Pricing Expertise
Determining the right price for a property is crucial. Overpricing can deter buyers, while underpricing can mean lost profits. Real estate agents use comparative market analysis to help you set a competitive and realistic price.
Connections and Resources
Real estate agents have an extensive network of professionals, from mortgage brokers to home inspectors. This network can be instrumental in providing recommendations for reliable service providers during the buying or selling process. 78% of buyers financed their home purchase (NAR, 2022), highlighting the importance of mortgage brokers in the real estate process.
Handling Complex Paperwork
The sale of a home entails an extensive amount of paperwork, including documents like the deed, bill of sale, affidavit of title, seller’s affidavit, transfer tax declarations, written offers, and repair records, which may ultimately fill an entire shelf. However, a real estate agent plays a vital role in managing and ensuring the completion of this paperwork, offering the added benefit of retaining these records for several years, serving as a valuable resource for any future inquiries or concerns. Missing or misunderstanding a document otherwise can lead to costly mistakes. An experienced agent can guide owners through these documents, ensuring that everything is in order.
Market Trends and Insights
Not adjusting to market changes can result in missed chances, lost sales, and a decline in business prospects. Therefore, staying informed about market trends is crucial for making informed decisions. Real estate agents have access to the latest market data and can provide insights into whether it is a buyer’s or seller’s market, helping sellers strategize accordingly.Top agents possess a comprehensive understanding of every facet of the housing market, particularly how various elements such as mortgage interest rates and unemployment rates can impact it. They also boast a profound familiarity with the intricate details of the market, encompassing not only the macro-level dynamics but also street-by-street and even house-by-house insights, catering to both buyers’ and sellers’ market dynamics.
Emotional Buffer
When considering buying a prospective future home, emotions can run high. Regardless of owner’s typical composure, the home-buying process is often a blend of overwhelming excitement and anticipation. Thus, enlisting an impartial realtor, one who lacks emotional ties to the property, to handle negotiations can serve as a key advantage in securing what the owner desires and rightly deserves. Furthermore, having an agent can act as a buffer between the parties involved, helping to maintain a professional and rational approach throughout the process. The primary expectations of real estate agents held by home sellers encompass competitively pricing their homes (22%), securing buyers (21%), achieving timely sales (19%), and aiding in effective home marketing (19%) (BAR, 2022).
Compliance with Regulations
Real estate transactions are subject to various regulations and laws that can vary by location. A real estate agent can help individuals navigate these legal complexities and ensure that they are in compliance with all the necessary regulations. Moreover, an experienced realtor’s ability to foresee and tackle potential issues before they become problems is invaluable. These closing hurdles, including document errors, mortgage delays, last-minute requests, unclear titles, and final walkthrough complications, can all be effectively managed with the guidance of a seasoned agent.
Conclusion
The benefits of employing a real estate agent are vast and essential for a successful and stress-free experience in the complex world of real estate transactions. From their expert market knowledge to their negotiation skills and unwavering support, a real estate agent serves as a crucial ally on your journey to buying or selling a property, ensuring that you make informed decisions and secure the best possible outcome.
References
BAR. (2022). Why Use a REALTOR® – Birmingham Association of REALTORS®. Birmingham Association of REALTORS. Retrieved August 29, 2023, from https://birminghamrealtors.com/why-use-a-realtor/
NAR. (2020, November 11). 2020 Profile of Home Buyers and Sellers. National Association of REALTORS®. Retrieved August 29, 2023, from https://www.nar.realtor/sites/default/files/documents/2020-profile-of-home-buyers-and-sellers-11-11-2020.pdf
NAR. (2022). Highlights From the Profile of Home Buyers and Sellers. National Association of REALTORS®. Retrieved August 29, 2023, from https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers
NAR. (2023, March 28). 2023 Home Buyers and Sellers Generational Trends Report. National Association of REALTORS®. Retrieved August 29, 2023, from https://www.nar.realtor/sites/default/files/documents/2023-home-buyers-and-sellers-generational-trends-report-03-28-2023.pdf
NAR. (2023, July 12). Highlights From the Profile of Home Buyers and Sellers. National Association of REALTORS®. Retrieved August 29, 2023, from https://www.nar.realtor/research-and-statistics/research-reports/highlights-from-the-profile-of-home-buyers-and-sellers
Warford, M. (2023, January 26). 26 FSBO vs. Realtor Facts and Statistics to Know. Clever Real Estate. Retrieved August 29, 2023, from https://listwithclever.com/real-estate-blog/fsbo-statistics/
Zillow. (2021). For Sale by Owner (FSBO) vs. Real Estate Agent. Zillow. Retrieved August 29, 2023, from https://www.zillow.com/sellers-guide/for-sale-by-owner-vs-real-estate-agent/
This article is written by Haneen Gul. Haneen is a research analyst at the Iqbal Institute of Policy Studies (IIPS).
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