Have you ever looked at a realtor’s commission? On average 6% of the home price goes to the realtor who helps sell your home. Honestly, this can be a lot of money and often turns sellers to try a for sale by owner (FSBO) transaction. And if you’ve seen the latest South Park Realtor episode, it may really encourage you to sell your home yourself.
However, realtors exist for a reason. If there was no use for them, the realtor industry would be shrinking. It is not. There is a need for good, reputable realtors. And a good, reputable realtor will provide value, expertise and peace of mind during your home sale.
Here are 5 reasons why partnering with a realtor will benefit the sale of your home.
1. Realtors Have Extensive Networks
A realtor’s business relies heavily on networking. They network more than most people who get up and go spend 9 hours in the same building and the same people at work every day.
Often realtors have come into contact with someone who is looking for the type of home you are looking to sell. Or maybe your neighborhood is desirable, and they know someone who is dying to move into it.
Not only do they network with a bunch of people, they keep good working relations with other realtors who have their own sphere of clients and networking.
This gives you, the client, a larger pool of buyers. You get access to other agents’ clients, as well as the connections your reputable realtor has established with him/herself.
These connections make your sale quick, efficient and most of the time both parties are happy.
2. Realtor's Act as A Stress Buffer
Moving a household is stressful. Whether it is in the same town, across the country, or overseas, there is stress involved with any type of move.
Not only is there stress in moving, homes are personal. Buyers may be extra critical of your home. Your realtor will be the go between.
Negotiations involving picky inspection contingencies can get frustrating. Your realtor can help navigate unrealistic expectations.
Maybe there are issues with your financing during underwriting. Your realtor can step in and help take care of that.
Being represented by a realtor removes the seller's direct contact with the buyer.
Real Estate agents are one to two people who stand as a buffer between the buyers and sellers.
When managed properly this distance between both parties keeps tensions reduced between the parties.
Not only do realtors deal with the buyer or buyers agent, but they also are in constant contact with the title company, lender, and insurance agencies.
They make sure that everything is moving along smoothly and that everyone else involved is doing their jobs.
If you sell your home yourself, you and the buyer need to make sure that all closing items are taken care of appropriately- without missing a beat.
3. Realtors Have Local Market Knowledge-
As a resident you can watch house prices all you want, but there is more to understanding a market than just watching house prices.
A good realtor will spend time daily analyzing their market and the current trends. They have access to the MLS and can see what is happening in their area.
For example, in some markets, larger homes are being sold for less per square foot than a mid size home. If your large home is priced wrong to begin with, that can affect the appeal of your home on the market. People may wonder what is wrong with the home.
Sometimes, when a home comes on and off and back on the market again, a realtor can get access to the information regarding the home.
While it looks to the outside world like the house has issues, sometimes it is just the buyer who has an issue.
A realtor has market data and access to the local insights due to being in that industry.
4. Realtors Know the Regulations and Legalities-
A realtor is required to keep up to date on real estate laws.
They also know what is required to disclose in a transaction and what red flags to look out for.
A realtor also has professional insurance, so that if they do make an error, they are protected.
A FSBO seller does not have these protections. Unless they have worked in the real estate industry in the past, there are huge legal issues that can arise if something is neglected or overlooked.
5. Realtors Have Training in Home Pricing and Negotiations-
Walmart is the king of this. Everything there is not rounded up to the nearest dollar. Instead everything is 2-3 cents less than the nearest dollar. Why? Because items truly seem cheaper that way.
Similarly there are pricing tactics specifically related to real estate.
Pricing and negotiation skills are important as a home sale/purchase is the largest purchase most people will make in their lifetimes.
Realtors, especially those with the PSA (pricing strategy advisor) certification have received extra training to price and negotiate for your home accordingly.
Pricing homes accurately will impact the sale of your home.
A good realtor is worth the value you pay them. The good ones are worth it. They eliminate many stresses that come with FSBO listings.
They can ensure that your real estate transaction goes smooth and quickly, ensuring all parties are happy at the closing table.
Do you have questions about what sets apart a realtor transaction?
Send me a text 208-310-0855, or fill out my contact form! I would love to chat with you about your real estate needs.