Buying or Selling a Home
There is one question that buyers and sellers both have to ponder. That question is should I use a realtor? The answer will depend on your specific needs. If you choose to use a realtor please be sure that you research that person and firm. Realtors should always be licensed; you can verify this information with your local realtor association. Now, let’s tackle the pros and cons of using a realtor from both perspectives.
Advantages of Using a Realtor when Buying
- Financing. A licensed realtor can help you determine your borrowing capability.
- Advertising. Realtors have resources at their fingertips that are not available to the general public, such as the MLS (multiple listing service), to help you find your dream home.
- Knowledge. A realtor will know a lot of information about the community or neighborhood you are interested in. For example, school districts and HOA fees.
- Negotiation skills. Realtors are trained to negotiate and know what deal breakers are. They are able to write up contracts and take the appropriate steps to finalize a closing with minimal problems.
- Contacts. An experienced realtor will have relationships with inspectors, lenders and appraisers. Their referrals can save you money and get the job done correctly.
Disadvantages of Using a Realtor when Buying
- Limited access. The realtor is motivated to sell you homes that they have listed since the commission for them is higher.
- Bias View. Keep in mind that the realtor’s job is to sell you the home. They will point out all the good aspects of the home and may overlook some drawbacks.
- Commission. Yes, it is true as a buyer you are not technically paying the commission, however most owners will raise the price to cover those costs.
Advantages of Using a Realtor when Selling
- Marketing. One of the main reasons people use realtors is for the marketing of their homes. Realtors have access to list the home on MLS. This is a service all realtors use; therefore your home can suddenly be viewed by numerous interested buyers.
- Time. The reality is the majority of us who are selling homes work full time. This doesn’t leave much time to answer calls about the home or show it.
- Set up. Realtors will know how to show the house so that it appeals to buyers.
- Closing process. A real estate contract is a lot of overwhelming paperwork. A realtor will know exactly how to fill it out and get it done quickly.
