The 2017 Profile of Home Buyers and Sellers shows that 87% of people who bought homes this year hired a real estate agent to help them buy a home. According to the profile, 83% of first-time home buyers find working with a real estate agent beneficial while 48% of repeat home buyers find it beneficial to work with a real estate agent beneficial.
The real estate agent was compensated by only the seller in 54% of the sales while in 21% of the transactions, both the seller and the buyers compensated the agent. 52% of the buyers needed help when looking for the right home to buy followed by 13% who needed help negotiating the terms of sale. 11% of the buyers, on the other hand, needed help with price negotiations.
These 3 things are common among both first-time and repeat home buyers. Repeat buyers needed help with knowing the selling price of comparable homes. First-time home buyers, on the other hand, needed help with paperwork, arranging financing and determining how much house they can afford.
Single men were more likely to need help when it comes to arranging financing but less likely to need help when it comes to negotiating the terms of sale. 51% of first-time home buyers found the real estate agent they hired through a referral from a relative, neighbor or friend while 37% of the repeat buyers found the agent through a referral.
17% of the repeat home buyers chose a real estate agent they had worked with before to either sell or buy a home. 10% of first-time buyers found their agent on their site. Most of the single ladies were more likely to find their agent through a referral from another real estate agent.
Home buyers said that the most important factors when looking for an agent include the following: knowledge of the purchase process, honesty and integrity, knowledge of the real estate market, responsiveness, and communication skills. 89% of the home buyers said they would recommend the agent they hired to other people. 91% of the home buyers said they’d already recommended the real estate agent they hired one time to someone else.
Statistically, it can be argued that a real estate agent is able to provide assurance for getting more out of your home. This assurance gives surety of you having more than what is there for you to own. This is what is widely perceived as the benefit of an agent. An agent undergoes training thereby learning negotiation skills. This knowledge is coupled with their in-depth industry knowledge, trends, and going rates can be the key to you profiting.
Advantages And Disadvantages Of A Real Estate Agent
There is always the lingering question as to whether there is a need for using a realtor when acquiring a house. Consideration of the advantages and disadvantages can help you know what could work for you.
The devotion to working in your best interest as they offer their efforts and time.
An agent can help fetch a more lucrative price for you.
He or she is licensed to help you with property matters.
He or she provides you with day-to-day updates on homes due to his or her networks and platforms.
There may be a need for you to first pay the agent according to the situation. However, there is a huge likelihood of this not happening for you as a buyer.
You may have to share time with other clients.
The idea of working with a middleman may cause friction.
Limitations may be experienced if an agent does not have a large database of listings.
An argument can be put forward that the disadvantages are outweighed by the advantages in this case. Nevertheless, you have to make considerations if it works for you.
The Roles Of A Buyer’s Agent
A buyer’s agent is the individual who acts on behalf of the homebuyer. He or she acts solely as your representative when buying a home. They offer recommendations on other professionals such as home inspectors. They also help you in the negotiation process. One of the exciting benefits is that the seller is the one ordinarily responsible for paying buyer’s agents.
Advantages Of Working With A Realtor When Selling Your Home
It is always challenging when you do things by yourself. This is the same case when it comes to selling your own home. Seller’s agents offer assistance to help sell your home speedily and at the best price possible.
A research carried out by Zillow stated that only 11 percent out of the 36 percent that attempted to sell their houses were successful. Agents were left to take over by the homeowners. It has also been found out that homes sold by agents fetch significantly more than For Sale By Owner (FSBO) homes. In 2018, agent-sold homes sold by an average of $65000 more in comparison to FSBO homes. This is according to the NAR.
Working with a seller’s agent provides the advantage of immense visibility of your home on the market. There is maximum exposure of your home to prospective buyers in addition to the advertisements done on your behalf. This may be the reason why they are able to rake up impressive statistics. A seller’s agent may be the missing piece if you have been unable to draw traffic to your listing, for more information visit this real estate agent website.
It is a big and challenging task to take on the home buying process. This is more so if you are thinking about pursuing this task by yourself. Delegation of this task is what you should consider if its coordination is already giving you a hard time. Assemble a team to help you with your homeownership tasks. You need to give thoughtfulness to the advantages that come with a real estate agent. You should contemplate whether this will hasten your homeownership process.
Buying or selling property can be a complicated procedure. Several forms need to be completed, information to be processed, and so many meetings to be attended that it makes it challenging to perform the tasks independently. The process includes, but is not limited to, disclosure forms, mortgage documents, deeds, insurance policies, closing statements and inspection reports – some of the documentation being government-mandated. To navigate this intensive and challenging proceeding, it is recommended that you hire an experienced advocate. Using professional services reduces the chance of error and unnecessary delays which can influence your purchasing of your dream home.
One significant factor is realizing that a specific language is used when dealing with real estate. If you do not understand the jargon, you may be at an extreme disadvantage with a higher risk of error. Professional and experienced real estate agents have closed hundreds or thousands of deals; therefore, they are suited to help you get precisely what you want from the proceeding. Specialists also have an updated appraisal of all real estate laws and regulations. Even if this is not your first property purchase, the information you have may be outdated. It is crucial that you work with people who know what they are talking about and whose livelihood is based on understanding this information. To be at an advantage, it is vital that your representative has an idea of what is happening in the current real estate industry.
Real estate professionals not only offer insight into the real estate market but can act objectively. In many cases, a person can become blinded by emotions attached to a property; therefore, they are likely to make bad decisions. For people who live in homes, there is a deep sentimentality based on the memories and associations attached to the property. It is recommended that you use an agent who will not be swayed by emotion to help you make a responsible decision.
Purchasing or selling real estate is a time-consuming and tiresome procedure. When the real estate market is active, houses rarely remain available for more than 60 days. This average timeframe is extended by another 30 or 60 days until the offer is accepted and the deal closed. If you do not hire a broker to assist with the transaction, the closing can take longer than the average time, if it happens at all.
If the real estate agent is reputable and legitimate, they will be registered with the National Association of Realtors or the Real Estate Board of New York. The National Association of Realtors currently has over one million agents registered across the USA. Registration with one or both of these associations is significant because it ensures the agent works according to a code of ethics.