Ask anyone, especially if you’re new to real estate – buying and selling a home is often a painstaking, long, and emotional journey – well worth it when you finally have them. keys to the house of your dreams in hand.
It is much more difficult to achieve this dream without the help and guidance of a professional, which is why it is essential to have a real estate agent in your area. As a licensed professional, often with years of experience, an agent plays a vital role in facilitating a real estate transaction between a buyer and a seller, ensuring the safety of consumers and often avoiding potential problems before they arise.
READ ALSO: 5 Arizona housing market forecasts for 2021
What if I want to sell or buy a house on my own?
While it may seem like flying solo is better off paying an agent a commission, more often than not the costs can add up in the end. Think about yourself; with allIIf I have issues, can I research the market, learn and understand local real estate laws, market my home, and effectively screen buyers? If you’re already working full time, chances are you don’t have the bandwidth to take on another. Beyond that, you don’t know what you don’t know, and there are pitfalls in the process that you can unintentionally step into.
Most agents tend not to display For Sale By Owner (FSBO) ads. There are hassles and risks involved in making deals when there are no licensed professionals representing either party. Time is money and agents prefer to do business with other professionals who know how to reconcile strategy and efficiency while each representing their clients in good faith. Even if an agent brings a buyer to an FSBO listing, sellers are instantly at a tactical, strategic and informational disadvantage compared to the seasoned agent.
Why do you need a real estate agent
Buying or selling a home is one of the most important financial transactions you’ll make, so it’s best to leave it to a professional to make sure everything goes smoothly. Here are six reasons why working with a real estate agent is worth it:
1. Local housing market expert
The more experienced an agent, the more expertise they will have on local real estate market trends, competitive listing prices and what makes offers attractive. They will spend time every day looking for active and pending listings so that they are always on top of what’s available.
An agent relies on his experience and skills to sell or list properties at the best price and under the most advantageous conditions. An agent will invest time working with their client, discussing and understanding their needs, and knowing the ins and outs of the housing market to give them what they want.
2. Minimizes legal and other risks
There is a lot of legal paperwork involved with painstaking nuances that a real estate agent has experience with. Agents know local real estate laws, saving you time and research you would have to do on your own. An agent will walk you through the legal process to make sure you aren’t breaking any local real estate laws when selling your home.
Beyond the legal process, agents will help you minimize other risks associated with buying or selling a home: financing risks, appraisal risks, inspection risks and dozens of risks. Other risks emerge with every purchase or sale and seasoned agents know how to deal with them or relate to who can.
3. Valuable connections
Agents have access to several listing services and over time they have built a large network with other realtors. The bonds and relationships they have forged over the course of their careers can attract more eyes to your home. These are valuable resources that otherwise would not be available without an agent.
Agents also build a vast network of trusted professionals that they have relied on over the years. These professionals include lenders, inspectors, traders (roofers, plumbers, etc.), lawyers, architects, accounting professionals, and many more that you may need to consult during the process.
4. Neighborhood expert
No one knows the best places to live, eat and play like a real estate agent does. Based on your preferences, they can recommend the best geographies and neighborhoods to live in. You can choose their brains to find out where the great schools are, what the crime rates look like, how they see the neighborhood changing over the next decade, etc. . When it comes to specific demographic information, agents are limited in what they can share directly due to fair housing laws, but they can provide you with resources for all of this information. While we’re on the topic, if you are considering moving to Phoenix, or if you already live here and want to move to a different neighborhood, check out our recommendations on the the best places to live in the Phoenix metro area.
5. Professional home marketing
An agent will take the time to research the local housing market and neighborhood trends in order to establish a competitive asking price. They will use attractive keywords to list your property, prepare advertising materials, stage your home, coordinate screenings, and many will hire a photographer at no cost to take great photos and videos of your home to show on websites. ‘ads and social media. .
6. Superior negotiation skills
Experienced real estate agents are expert negotiators and work hard on your behalf to make sure you get the best deal that meets or exceeds your goals. As mentioned earlier, time is money and agents can identify and eliminate unqualified buyers such as dreamers or curious neighbors who are slowing the process down. An agent will beat the noise and maximize the time spent with people who are serious about buying your home.
What you can expect to spend on a real estate agent
The closing process can be a bit confusing, which is why it’s important that an experienced agent walks you through closing the deal.
The seller (not the buyer) pays a commission to their real estate agent at the time of closing.
Closing costs may vary slightly, but the amount is typically 6% of the final sale price. Typically, these fees are split equally between the selling broker and the buying broker.
For example, if a house sells for $ 500,000, the seller will pay $ 30,000 in total commissions to both brokerages.
In the state of Arizona, buyers and sellers can expect to pay closing costs, although the seller typically pays a significantly higher amount due to commissions. Closing costs cover several real estate transaction fees and expenses, including appraisal, credit report, legal fees, government processing fees, title insurance, escrow fees, lender fees, processing and underwriting fees, as well as prepaid property taxes and insurance.
The average Arizona closing cost for a seller is 1% of the final home price. So if we stick to the previous example of selling a house for $ 500,000, 1% of the closing costs means the seller covers most of the $ 5,000. Buyer’s closing costs, especially when financing the purchase, tend to be between 1.5% and 3% of the purchase price.
Trevor H. Halpern, JD is the # 1 Independent Agent in Phoenix Nord & Co. and the founder of the Halpern Residential real estate group. As a native of Phoenix, Halpern’s in-depth knowledge of people and property has enabled him to create success for his clients in all areas of the city. As a graduate of ASU Law School, Halpern prides itself on delivering high-level strategy, effective negotiations and precise tactical execution. Since 2011, Halpern has sold more than $ 100 million in real estate and has been in the top 1% of real estate agents in the Greater Phoenix metropolitan area since 2016.