“WHAT SERVICES DOES A Realtor PROVIDE?”
by Thomas Ervin

Homeowners sometimes wonder if they would be dollars ahead by selling their house themselves and saving the fees that are paid to a Realtor. People with a sales background in some other field are particularly tempted to do it on their own. Twenty years ago, when things were much simpler, some people did have success selling their house themselves. Today, we face a much more complicated world in every endeavor including home sales. Here are some of the services that a Realtor provides:

PRICING KNOWLEDGE

It is not easy to determine the proper asking price. Realtors now have computer terminals in their offices that notify them of new listings, recent sales, and price changes as they occur. This vital information reflects the current market in your area is it really is. After making many comparisons between your home and like properties, your Realtor can recommend an asking price that is competitive with similar homes on the market. After the house is listed, periodic checks can be made into the computer system to assure you that your price does keep pace with ever-changing market conditions.

MARKETING EXPERIENCE

Because the sale of your home profoundly affects your financial well being, it is no undertaking for an amateur. It is best to get the help and advice of someone who is working I the real estate business everyday. Realtors also possess selling tools not available to the average homeowner. These include membership in a multiple listing service, large advertising budgets, access to the transferee through referral organizations and corporate relocation departments and home financing expertise used to qualify buyers.

NEGOTIATING AND CLOSING ASSISTANCE

Handling an offer and counter-offer require the right touch. This is only learned through experience. Once the offer is signed and accepted, the job is still not complete. Now, the sale must be guided through numerous closing procedures that involve financing, inspections, conditions, legalities, and a myriad of details.

The vast majority of informed buyers are now enlisting the services of a buyer agent. This agent will specifically work on the buyer’s behalf and can provide invaluable help in analyzing options, preparing a buy-sell agreement, negotiating and advocating on your behalf, understanding your costs and financing, and coordinating your purchase.  Your buyer agent agreement will detail the terms and commission that you are guaranteeing to your agent in the event of a successful sale.  In most cases, the seller has already agreed to and set aside a “cooperating fee” to be paid to the buyer’s agent and this will fulfill your obligation to your agent.  In summary, although buyer agency has changed the way agents interact and service buyers – putting them on equal footing with the sellers in a transaction – the commission is still paid from the seller’s proceeds in the overwhelming majority of sales. 

Ideally, a buyer will seek a prequalification or preapproval letter from a local lender before making an offer on a new home.  It is important to pursue those properties that are realistically in the financial range for the buyer.  Once, you have completed a sales agreement involving a new mortgage, a three-six week time frame is typical to plan for the closing to take place.  Remember to consider holidays and moving/possession obligations for all parties involved in the transaction.  It may work best for all parties to plan for a closing two or three months out, or, in the case of a cash sale on a vacated property, you could close in 10-14 days.  

“Why Realtors Can Get You Top Dollar”
by Thomas Ervin

It is not unusual for homeowners to consider selling their home without the services of a Realtor. It would appear that the seller would save money by avoiding the cost of a sales commission. As logical as this sounds, the opposite is often true because Realtors usually have the ability to get a higher sales price than an amateur.  Here are some things to consider:

CREATION OF DEMAND

A Realtor can create more demand for a home than an owner acting alone. This increase in demand increases the price of the supply of homes that are available to meet this demand.  Demand is created by commissioned sales people who don’t receive a paycheck until they make a sale. So, Realtors are motivated to produce results. Realtors are always advertising to attract buyers to their listings. These advertisements provide a constant supply of buyers who are interested in buying a home in certain geographic areas.

  Realtors also belong to multiple listing services (MLS). These services swing into action when a home is listed by a member firm. Information on each home is broadcast by computer to every other real estate agent who belongs to the service. This allows hundreds of agents to show your home to potential buyers at the invitation of the listing agent.

PRICING EXPERTISE

Correct pricing is best achieved by someone who is in real estate on a regular basis. The asking price must attract buyers, be competitive with similar homes, and allow for some negotiation. Many sellers lose money at the onset with improper pricing. It is best to use a professional when making the critical decision of the asking price.

THE POWER OF AN AGENT

There are numerous situations in which it is better that the buyer and seller not communicate directly with each other. A seller could become intimidated by the buyer and sell the home for less than it is worth. The seller also may betray how anxious he or she is and give the buyer reason to drive a hard bargain while negotiating. An objective and experienced Realtor can help protect the interests of the seller and obtain a fair market price.