Many home buyers and sellers today feel that hiring a real estate agent is a waste of money. There is an unprecedented amount of real estate information available on the internet today for those buying and selling property. Access to this information lead some to believe that they have all of the resources they need to successful negotiate, facilitate, and close a transaction without a real estate professional. The reason why this conclusion is wrong and a very bad idea is because buying and selling real estate interests involves a lot more than just information. There are many reasons a real estate broker is a necessity for a favorable closing. Here are only three of those reasons:
Negotiation – Most homeowners are involved in a real estate transaction every 1-5 years. Good real estate brokers are a part of 1-5 transactions every month. This gives them the experience and working knowledge of the industry to be equipped to negotiate with all parties to a transaction – attorneys, brokers, inspectors, title companies, contractors, etc. Brokers know all of the “tricks of the trade” and work diligently on behalf of their clients to help them circumvent these practices and use them to their advantage.
Legal Implications – Licensed real estate brokers are required to act in the best interest of their clients or risk the loss of their license and/or monetary damages, The mandated rules and regulations set forth by every state are more stringent now than ever before and strictly enforced. This is why good real estate agents pay close attention to every detail and make sure they are taking care of their fiduciary duties to their clients so they are able to continue to make a living practicing real estate. Individuals who are not real estate professionals have limited oversight and may not be aware of the legal and fiduciary responsibilties of all parties involved in the transaction.
More money – Many For Sale by Owners (FSBOs) think they are saving money by not hiring a real estate broker. However, when buyers consider buying a FSBO, they factor the so-called savings in their offer price. Also, most buyers hire real estate agents and have a considerable advantage when negotiating with a home seller who does not have a professional working on their behalf. Also, many real estate professionals prefer not to enter tranactions when the other party does not have representation because that could cause a conflict of interest and exposes them to possible litigation if the non-represented party is not happy with the result of the transaction.
Everyone should utilize all of the internet resources available to them when doing research to buy or sell real estate interests. It should be used for information, saving time, and help make the process easier and more fun. If you are serious about the disposition of your most valuable asset, you should hire a professional to maximize the potential of a satisfactory transaction.