There really is more to the process than just shopping on line or putting a sign on the property.
Generally less than 10% of properties sold were found by a sign on the property. Overwhelmingly, the internet is where nearly 50% of the market finds properties for sale, with only 1% being found in the newspaper. Though there are sites that cater to the needs of un-represented buyers and for sale by owner properties(FSBO’s), it is your local Realtor who will locate or market your property best.
Realtors, search for and market properties all the time but they are also networking and marketing themselves, at a fair expense, on a variety of real estate websites and through professional networking groups. These efforts create more conduits of access to great properties and to approved, ready, willing and able buyers. Un-represented buyers and FSBO’s are not always knowledgeable of how to find these properties or marketing opportunities and therefore do not always find the best properties or ready, willing and able buyers.
Finding the right property at the right price can be very time consuming and difficult, without the assistance of a Realtor. Once a Realtor knows your search criteria, they can find properties, do market analysis on price, research the property history,and research the area in which the property is located. Though the average un-represented buyer has access to some real estate sites, Realtors have much more access to timely and accurate property information, through a wide variety of sources, that makes the process much easier and more detailed.
“For Loss By Owner”!! That is not a typo, because loss is what you can expect, when selling your property without a Realtor. Please, DON’T take my word for it, look it up!! Statistics show that for sale by owners(FSBO) generally loose anywhere from 5 to 25%, meaning that a FSBO property sold for 200k may have sold for up to as much as 250k, with the assistance of a Realtor. One of the main factors for this is that FSBO properties generally do not get marketed as aggressively and buyers who are able to find FSBO’s are shopping FSBO properties typically because they are only shopping for the possibility of getting a lower priced property.
As you can see buyers and sellers have different needs. Therefore there Realtors do different things depending who they represent. The reason the Realtor has a roll on both sides of the transaction is that both sides of the transaction need someone trained and committed to protecting their interests through the process. My point is never more clear than at the point an offer is submitted.
No matter which side of the transaction you are on, the purchase agreement is where the reality of the transaction starts. The purchase agreement is by all accounts the contract that bonds the buyer and the seller. The contract identifies all principal parties to the transaction, the date of the transaction, the legal definition and location of the subject property, the offered purchase amount and several other very specific, time sensitive, issues and obligations. Clearly this type of transaction is not to be taken lightly and should be done at the very least with the council of a real estate professional.
Both buyers and sellers alike, need to know and understand what is going on in the purchase agreement, as it sets the boundaries and pace of the transaction, for both sides. Though the document is somewhat flexible, in that addendum’ can be used to achieve mutually agreed upon changes, the boundaries and time lines set forth in the original agreement are what govern and guided the transaction, from beginning to end.
A purchase agreement/contract is a collection of mutually agreed upon terms and conditions, that range from the purchase price, to the closing date and the location of the closing attorney. All of the terms and conditions have details that need to be thoroughly read and understood. Failure to thoroughly read and understand the purchase agreement, on either side of the transaction, can result in great financial loss as well as endless stress and frustrations. Overlooking even the smallest of detail or failure to meet any contracted deadlines can be very costly, for a very long time. Having the right Realtor and brokerage can make all of these issues much easier to manage.
Here again, no matter which side of the transaction you stand on, the negotiation period that takes place after the submission of the inspection report is a key point in the transaction. This part of the transaction requires attention to detail and experience in negotiation. This is also a key point in the transaction, where your ability to OVERRIDE YOUR NATURAL INSTINCT to not listen to your Realtor is of utmost importance. When it comes to pricing your home as the seller, or setting the price for an offer as the buyer, or knowing when to bend or stand fast on negotiation terms, try your best to rely on your Realtors advice.
Realtors use a wide variety of print, professional networking and electronic marketing techniques to find your property or to get your property in front of hundreds of people, every day. E-blasts, post cards, multiple websites, brochures, information insert sheets, a quality sign on the property and networking are just a few of the ways a Realtor and brokerage work together to find or market and sell your property. Please know that saving and making the most money possible for the client is what drives Realtors.
Understanding this, you should now see the value of choosing and using a Realtor for your next real estate transaction. No matter how big or small the transaction, you will have protection from loss and a knowledgeable advocate on your side, when you use the services of a qualified Realtor.
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