Real estate transactions involve one of the biggest financial investments most people experience in their lifetime. Transactions today usually exceed $100,000. If you had a $100,000 income tax problem, would you attempt to deal with it without the help of a CPA? If you had a $100,000 legal question, would you deal with it without the help of an attorney? Considering the small upside cost and the large downside risk, it would be crazy to consider a deal in real estate without the professional assistance of a real estate agent, especially one that knows California like no other.
But if you’re still not convinced of the value of a real estate agent, here are some more reasons to use one.
If you are buying a home, a Real Estate Agent from our Family of Companies:
1. Can help you determine your buying power
— that is, your financial reserves plus your borrowing capacity. If you give your real estate agent some basic information about your available savings, income and current debt, he or she can refer you to lenders best qualified to help you. Most lenders — banks and mortgage companies — offer limited choices.
2. Has many resources to assist you in your home search
Sometimes the property you are seeking is available but not actively advertised in the market, and it will take some investigation by your agent to find all available properties.
3. Can assist you in the selection process by providing objective information about each property
Real estate agents have access to a variety of informational resources. We can provide local community information on utilities, zoning. schools, etc. There are two things you’ll want to know. First, will the property provide the environment I want for a home or investment? Second, will the property have resale value when I am ready to sell?
4. Can help you negotiate
There are myriad negotiating factors, including but not limited to price, financing, terms, date of possession and often the inclusion or exclusion of repairs and furnishings or equipment. The purchase agreement should provide a period of time for you to complete appropriate inspections and investigations of the property before you are bound to complete the purchase. Your agent can advise you as to which investigations and inspections are recommended or required.
5. Provides due diligence during the evaluation of the property
Depending on the area and property, this could include inspections for termites, dry rot, asbestos, faulty structure, roof condition, septic tank and well tests, just to name a few. Your agent can assist you in finding qualified responsible professionals to do most of these investigations and provide you with written reports. You will also want to see a preliminary report on the title of the property. Title indicates ownership of property and can be mired in confusing status of past owners or rights of access. The title to most properties will have some limitations; for example, easements (access rights) for utilities. Your agent, title company or attorney can help you resolve issues that might cause problems at a later date.
6. Can help close the purchase of your new home
Between the initial purchase agreement and closing (or settlement), questions or issues may arise. Your agent is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).
If you are selling your home, a Real Estate Agent:
1. Can give you up-to-date market information
One of our agents can provide market information and the price, financing, terms and condition of competing properties. These are key factors in getting your property sold at the best price, quickly and with minimum hassle.
2. Markets your property to other real estate agents and the public
Often, your agent can recommend repairs or cosmetic work that will significantly enhance the marketability of your property. Your agent markets your property to other real estate agents and the public. In most markets, over 50% of real estate sales are cooperative sales; that is, a real estate agent other than yours brings in the buyer. Your agent acts as the marketing coordinator, disbursing information about your property to other real estate agents through a Multiple Listing Service or other cooperative marketing networks, holding open houses and tours for other agents, etc.
3. Knows when, where and how to advertise your property
There is a misconception that advertising sells real estate. The National Association of Realtor’s studies show that 82% of real estate sales are from sources other than advertising like personal referrals, company reputation, and yard signs. Your agent will have access to these sources and more. Also, when a property is marketed with the help of your agent, you do not have to allow strangers into your home. Your agent will generally prescreen and accompany qualified prospects through your property.
4. Can help you objectively evaluate every buyer’s proposal without compromising your marketing position
This initial agreement is only the beginning of a process of appraisals, inspections and financing — a lot of possible pitfalls. Your agent can help you write a legally binding, win-win agreement that will be more likely to make it through the process.
5. Can help close the sale of your home
Between the initial sales agreement and closing (or settlement), questions may arise. For example, unexpected repairs are required to obtain financing or a cloud in the title is discovered. The required paperwork alone is overwhelming for most sellers. Your agent is the best person to objectively help you resolve these issues and move the transaction to closing (or settlement).