Does Working with an Agent Save Money?
Show me the money!
As in any industry, we have very loyal clients who return to us year-after-year to buy and sell their homes. They continue to refer business and give us glowing reviews. Some past clients unfortunately do no return. There are many reasons why, maybe a family member became a real estate agent or maybe the grass looked greener with another agent? Whatever the case may be, we strive to stay both in front of our clients and ahead of the game by providing a wealth of knowledge to our clients. This can include statistics of past sales in a neighborhood, interest rates, and negotiating the price along with closing costs. So does working with an agent really save you money? Let's take a look at the process:
1) Negotiation-By not working with a real estate agent, you leave the negotiation in your own hands. If you are not familiar with County Records of closed sales within the past 6-12 months, you may be overpaying. Closed sales, pending sales and active listings and financing can all contribute to the price you will pay but if this information is not readily available, you may wind up spending more money than you bargained for. A real estate agent can provide these facts and more prior to submitting an offer. By working with a knowledgeable real estate agent, you could save up to 25% or more on the purchase along with closing costs. Quite substantial! The benefits include less taxes and as a buyer you are not paying the real estate commissions. It's really a win-win! As a seller, understanding the market and where to price your home along with getting buyers to see the home and fall in love with it is another reason to use a real estate agent. If the agent increases your profits to cover the commissions you pay it's a win-win as well.
2) Market knowledge-Real estate agents pay to utilize services such as Sandicor and the Multiple Listing Service to both list property and search for homes. Included in this service is the ability to research County Records for past sales. There are several tools to provide both buyers and sellers with a Comparative Market Analysis to gain insight into what other homes with similar square footage and ammenities have sold for and are currently active on the market. This is a way both buyers and sellers can gauge how the market is performing and make and educated decision.
3) Closing-Getting the buyer or seller to commit is only part of the process. Taking you through inspections, time periods and financing is a whole other ball of wax. In a climate where financing can have challenges and homes need repair, these can become issues and get very tricky without an experienced agent to lead both parties to the finish line. Does the buyer want a home warranty? Does a termite inspection need to be completed? Will the lender accept chipped paint and an unfinished bathroom? These are all great questions and ones that an experienced agent will have handled and can assist with. This can be worth it's weight in gold for both parties to wrap up the transaction.
So does the end really justify the means? Our most recent closed sale in a local condominium development closed for over $50,000 less than the appraised value. It was a non-arms length transaction, meaning no parties were related. So was it good negotating or luck? You know my answer!
*Disclaimer: Every sale is different and must be evaluated on it's own merit. As Certified Negotiation Experts (CNE), West Coast Living Real Estate Group strives to negotatiate the best pricing for both buyers and sellers and come to a fair agreement.
