When planning to buy or sell a home, it can seem enticing to do it yourself. It's easy to persuade yourself that you can do this on your own. In fact, the average homeowner or prospective buyer without technical experience finds this to be an extremely frustrating and intimidating process—one that often ends in disappointment.
A successful real estate agent adds a lot of value to the situation. The figures and the performance speak for themselves.
According to statistics from the National Association of REALTORS®, using a real estate agent to sell your home will increase the purchase price by about $39,000 for an average transaction.
It seems that the general public is beginning to recognize the value of an agent.
Unagented sellers surveyed by the NAR came across the following challenges when selling their home:
Those who do seek the assistance of a real estate agent almost never reconsider their decision.
If you don't have a lot of experience with real estate transactions—or if you often watch some of the successful real estate reality TV shows right now—it's easy to underestimate the many important tasks a real estate agent performs to ensure a deal goes smoothly. In real life, you will profit from your agent's high level of experience and insider knowledge—expertise that will save you money, help you avoid unnecessary stress, and maybe even prevent you from making a costly mistake.
A real estate agent is responsible for a plethora of activities, both big and small, many of which occur behind the scenes and mostly go unnoticed by the customer. However, each minor detail may have a major effect (sometimes a significant impact) on the property's chances of selling and the sales price—or, in the case of a buyer, their chances of having the property they want at the best price and with the best financing terms. Let's take a look at just a few of the many activities that a busy real estate agent must complete on a regular basis.
Preparing for the listing meeting/presentation, investigating the house, collecting data and demographic information about the city, and likely doing an initial exterior inspection of the home are all examples of this.
This is where the agent makes their sales pitch, describing the value that they and their organization bring to the table. They outline their strategy for positioning the property in the best possible light to make it appealing to prospective buyers, as well as their initial impressions of the property. Finally, they clarify and sign the listing agreement.
This is where the actual work takes place. This stage of the process can be frustrating and time-consuming, and the agent can devote a significant amount of time to the tasks at hand. The agent will be juggling a lot of tasks and duties, such as investigating and collecting paperwork/documentation relevant to the house, writing a listing summary of the home, and taking care of all of the minor details to get it ready for showings. If necessary, they also insert the listing into the MLS database.
This is most likely the agent's most noticeable role—showing the property and offering their best sales pitch to buyers or agents. Hopefully, there will be some interested customers, and the agent will field and negotiate offers.
This stage includes the inspection, appraisals, loan approvals, and closing preparations. These are the vital information that are often ignored by clients but can have expensive or deal-killing implications if not handled correctly.
Unless there are some last-minute problems, the closing occurs, documents are signed, and the transaction is done.
Relationships are important. One of the most important benefits that an agent offers is their network of contacts.
A significant number of properties are sold before they are listed on MLS, especially in San Diego and other major metropolitan areas where many sellers are private and do not want to expose their home to the public. A well-connected agent has first dibs on those coveted pocket listings. Having access to such listings is a significant benefit.
Another important asset an agent brings to the table is their great experience with real estate contracts. These complicated documents and legal ramifications that come along with them aren’t easy for amateurs to navigate.
Hopefully, by now, you understand why it’s a good idea to avoid navigating the challenging and often complicated world of real estate on your own. There are numerous large and small duties necessary, each of which, if neglected, can cost you a lot of money.
Using a real estate agent to sell your property can increase the sale price by an average of $39k, according to studies. That's a direct result of all the hard effort real estate agents put in to make sure the entire transaction goes well.