28 reasons to employ a realtor when buying or selling a home.
1. Multiple Listing Service (MLS)
MLS provides exposure to literally thousands of people through agents, while a FSBO has only his own personal contacts.
2. Full-Time Service
Real estate offices have secretarial assistance during peak hours and message answering and paging services during the off-peak hours. A salesperson is always available to handle inquiries. Any time a private seller is away from home, his home is off the market.
By use of a Comparative Market Analysis, a salesperson can help a vendor choose the right price to ask. While some vendors ask too little, others ask far too much. Once a house sits unsold for too long it becomes stale. Often a vendor is forced to reduce the price and may have to accept less money for his home than he would have received had he started at the right price originally.
4. Recommendations to Build Actual Value
Real estate agents are able to offer suggestions on how to improve a home’s “showability” and hence increase market value.
5. Build Perceived Value
A good real estate salesperson can select the best route to a showing and point out comparable properties which will put the property to be shown in the best possible light.
6. Referral Business
Much of a real estate company’s business comes from corporate or personal referrals. This market is unavailable to private sellers.
7. Relocation Business
Out-of-town buyers seldom have the time or knowledge to deal directly with owners.
8. Home Owners Already Listed
These individuals normally purchase through the company with which their own home is listed.
9. Risk of Over Exposure
A property depreciates the longer it is on the market. The first two to three weeks is a crucial period as a property is introduced to the market. Many owners fail to take advantage of this excitement by limiting the market to their own contacts and advertising; whether a vendor is private or not, he is on the market.
10. Qualify Prospects
Good salespeople are capable of qualifying prospects so that only those who qualify to buy the home are introduced to it. This eliminates most “lookers” and non-serious purchasers.
11. Controlled Showings
The owner can generally be assured of advance notice for showings. Private showings eliminate the possibility of a personality conflict between vendor and purchaser.
Agents screen all prospects and accompany all potential buyers through the property thus there is little chance of dealing with strangers who may have activities mind other than buying a house.
13. Buyer’s Reluctance
Demonstrating property is an art. Not everyone enjoys poking through other people’s closets, while it’s an agent’s job to demonstrate the home and its features.
Virtually every purchaser has objections which agents are trained to handle. A private seller often gets indignant if the purchaser doesn’t like something about the home.
15. Hidden Objections
Not all purchasers will come out and say what is bothering them, particularly in front of the vendor. A real estate agent is trained to smoke these out and handle them professionally.
16. Written vs. Verbal Offers
In real estate the offers are in writing and irrevocable, private buyers often give verbal offers and then revoke them.
Because of the training and the role of intermediary agents can negotiate better than a vendor can on his own behalf.
A good real estate salesperson is aware of many different ways to finance a purchase, while a private seller doesn’t even normally assist in finding suitable financing.
19. Eliminate Potential Problems
A good real estate salesperson can help eliminate red tape and keep legal costs to a minimum. When an agent does the work, the lawyer charges for checking. When there’s no agent, the lawyer does the work and then charges accordingly.
20. Service After Sale
Agents stay involved with the deal until the transaction is closed.
21. Involvement After Closing
Although a vendor may leave town, a purchaser is secure in the thought that, should a problem arise after closing, the agent will be there to help out.
A prospect is more likely to believe a licensed real estate representative than an owner who will not likely be around after the sale.
23. Code of Ethics
A licensed real estate salesperson must adhere to a rigorous code of ethics. A direct buyer or vendor is not so constrained. Purchasers want the protection an agent can offer.
24. Time Is Money
A vendor selling privately can expect to put a minimum of 80 hours “work” into the project. This does not account for other out of pocket expenditures such as advertising, lawn sign, or divorce lawyer! Selling a home can be extremely stressful.
25. Client Follow-Up
Real estate professionals are trained to follow-up all leads, inquiries and showings. Such follow-up is normally expected and does not have a detrimental effect on a vendor’s bargaining position, while a private seller doing follow-up is deemed to be anxious or desperate.
26. Private Sellers Attract Bargain Hunters
Anytime a buyer doesn’t buy from a store or through a salesperson he expects to pay less. In effect, he expects to save the commissions or profits that would normally go to the salesperson or store owner. Why should someone do all the work a realtor would normally do and still pay full price? Since the vendor is trying to save the usual 6% and the purchaser is trying to save 6% now they are 12% apart.
27. The Best Prospects Work with Realtors
People who have been transferred from out of town; people who have their home for sale; or people who have sold their home, all work with realtors.
28. Peace Of Mind
Let’s be honest—selling your own property is a hassle for which most people are ill-prepared, and most real estate commissions are cheaper than most lawsuits!