Throughout the years I have been asked why anyone would need a real estate agent. The first and most apparent reason is that this will be the largest personal financial transaction that most will ever experience! It might be a good idea to have a professional to guide you through a successful transaction.
Many people believe that if you have the right algorithm you will find the perfect property or that this is as simple as what is shown on reality TV shows. What most don’t realize is the negotiation expertise required, overcoming transaction problems (and there can be numerous ones) and coordinating/knowing the best service providers (that can be as many as 25) to get the deal closed!
In addition to these priceless reasons, real estate agents earn their commissions as they can save you thousands of dollars, or make you thousands of dollars, while ensuring you are legally protected in all the steps to closing. Here are additional value added expertise that will benefit you:
- Financing contingencies that include prepayment penalties, appraisals not meeting the sale price, interest rate increases, unable to qualify and a host of other issues that can be managed by the agent.
- Government requirements and disclosures on the federal, state and local levels that can be overwhelming and costly if you don’t know about them. These include foreign investment taxes, lead-based paint, flood zones, agency documentation, environment, asbestos, radon, installation of gas shutoffs, low-flow toilets and the list goes on and on!
- Inspections that could include incorrect findings, resolution by other professionals such as geologists, roofers and quality repair companies. Termite inspections, HOA inspections and their requirements could impact the entire sale process. Real estate agents can navigate you through all these challenges that will protect you, your money and your property.
- Open houses are advertised and marketed to your advantage, plus they ensure your safety and save you time. This is great for you whether selling your home or buying a home for it gives you more exposure than you could have had on your own.
- Real Estate affiliates that include quality appraisers, title, attorneys, moving services, repair services and a host of other real estate professionals. I have seen appraisals that weren’t accurate and could have cost either the buyer or seller tens of thousand of dollars. One transaction couldn’t be closed by any title company, but my title company was able to not only close the deal but saved $35,000 on an incorrect lien on the property.
- Almost every real estate transaction includes differences, disputes and required negotiations by a trained real estate agent. In addition to coordinating of all these complex and numerous aspects of the sale, an agent can help you to get to a resolution. At some point during the transaction, both parties usually believe that the deal won’t close! Yet, only 1% of these of real estate transactions go to litigation due to the experienced real estate agent who can get the deal closed!
Now you know why the real estate agent is a valuable and necessary resource for you when buying or selling your home!
Keeping you smarter, Dr. Hank
