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Why should you hire a real estate professional? Wouldn't you just save money doing this on your own?
The short answer is - no. You probably won't save any money doing this on your own, whether or not you are a buyer or seller.
While it's possible for someone to buy or sell a property without hiring a realtor, it's important to understand that doing so may not necessarily result in cost savings, and it could even lead to financial disadvantages in the long run. Here are several reasons why someone may not save money if they choose not to hire a realtor:
Limited Access to Information: Realtors have access to comprehensive databases of properties, market trends, and historical data. Without a realtor, you may miss out on potential deals or overpay for a property.
Pricing Expertise: Realtors have the knowledge and experience to accurately assess property values. Without one, you might struggle to determine the fair market value of a property and risk either overpaying or underpricing it.
Negotiation Skills: Realtors are skilled negotiators who can secure better deals for their clients. If you lack negotiation experience, you may not be able to get the best price or terms when buying or selling a property.
Legal and Contractual Expertise: Real estate transactions involve complex contracts and legal obligations. Realtors ensure that all paperwork is completed accurately and in compliance with local laws and regulations, protecting you from costly legal issues.
Market Knowledge: Realtors are intimately familiar with local real estate markets, including neighborhood-specific trends, amenities, and potential issues. Without this knowledge, you might make decisions that aren't in your best financial interest.
Time and Convenience: Real estate transactions involve numerous tasks, including property searches, paperwork, negotiations, inspections, and more. Handling all these tasks yourself can be time-consuming and stressful. Your time is valuable, and a realtor can save you both time and stress.
Missed Opportunities: Realtors often have access to off-market properties and exclusive listings that you wouldn't be aware of without their connections in the industry. Missing out on these opportunities could mean missing out on potentially better deals.
Lack of Marketing Skills: If you're selling a property, a realtor can market it effectively to a wider audience. DIY sellers may not have the marketing skills or reach to attract the right buyers, potentially leading to a longer listing time and lower offers.
Property Condition and Repairs: Realtors can help you identify necessary repairs and improvements to increase your property's value. Without their guidance, you might spend more on renovations than necessary or sell a property below its potential value.
Emotional Decision-Making: Buying or selling a property can be an emotionally charged process. Realtors provide an objective perspective and help you make rational decisions, preventing impulsive choices that can cost you money.
While there are costs associated with hiring a realtor, their expertise, negotiation skills, and market knowledge often lead to better financial outcomes in real estate transactions. In many cases, the potential cost savings, higher sale prices, and reduced risks that come with hiring a realtor can outweigh their fees, making their services a wise investment for many buyers and sellers.
What do real estate professionals actually do for you?
For Buyers:
- Conducts a thorough needs analysis to understand your preferences and requirements.
- Provides access to an extensive database of available properties.
- Assists in narrowing down property options based on your criteria.
- Schedules and coordinates property viewings.
- Offers insight into local neighborhoods, schools, and amenities.
- Explains market conditions and helps set realistic expectations.
- Provides guidance on financing options and connects you with lenders.
- Helps you understand the closing costs and budget accordingly.
- Negotiates on your behalf to get the best possible price.
- Drafts and reviews purchase offers.
- Coordinates inspections and appraisals.
- Advises on necessary repairs and negotiates repairs with the seller.
- Ensures all contract contingencies are met.
- Manages all paperwork and documentation.
- Facilitates communication between all parties involved.
- Helps with the final walk-through before closing.
- Attends the closing to ensure a smooth process.
- Provides recommendations for trusted service providers (e.g., movers, contractors).
- Offers guidance on homeowner's insurance.
- Keeps you informed at every step of the process.
For Sellers:
- Conducts a comparative market analysis to determine your property's value.
- Recommends improvements to increase your home's marketability.
- Creates a customized marketing plan for your property.
- Lists your property on the MLS (Multiple Listing Service).
- Takes high-quality photos and creates virtual tours.
- Hosts open houses and private showings.
- Markets your property online and offline.
- Screens potential buyers to ensure they are qualified.
- Handles all inquiries and follows up with interested parties.
- Negotiates offers to maximize your profit.
- Drafts and reviews sales contracts.
- Coordinates inspections and appraisals.
- Addresses repair requests and negotiates on your behalf.
- Ensures all contract deadlines are met.
- Manages all paperwork and documentation.
- Communicates with the buyer's agent and other professionals.
- Assists with the closing process, including title work.
- Provides guidance on staging your home for showings.
- Offers advice on pricing strategies.
- Promotes your property to a network of fellow real estate agents.
- Monitors market trends and adjusts the sales strategy accordingly.
- Helps you navigate any legal or regulatory issues.
- Provides post-sale support and resources.
General Realtor Services:
- Stays up-to-date with local real estate laws and regulations.
- Provides a strong professional network of inspectors, appraisers, and contractors.
- Offers access to off-market properties and exclusive listings.
- Negotiates effectively to protect your interests.
- Saves you time by handling administrative tasks.
- Reduces stress by managing the complexities of real estate transactions.
- Acts as a mediator during disputes between parties.
- Provides guidance on property tax and assessment matters.
- Offers insights into future market trends.
- Assists with 1031 exchanges and investment properties.
- Helps with relocation services.
- Assesses property value for estate planning purposes.
- Advises on property management and rental investments.
- Facilitates communication with international buyers/sellers.
- Provides support for clients with unique needs (e.g., luxury, historic homes).
- Handles negotiations in a competitive market.
- Offers guidance on environmentally friendly and sustainable housing options.
Having a realtor on your side can make the buying or selling process smoother, more efficient, and ultimately more successful. Their expertise and support are invaluable in the complex world of real estate.
"Well, your commission is still too high for what you do." Here's why that's not true.
The public has a lot of misconceptions of realtors. The average full time realtor salary last year was $31,900, which is below the living wage. As a realtor, we do not get paid a hourly wage or salary and we only get paid if we sell a home AND it closes. We can only get paid by our broker. An agent could work with someone days, weeks, months, or years with no guarantee of a sale ever. That means that there is no guarantee we can make money to put food on our tables and pay our rent or mortgages. Essentially, we wake up each day unemployed, going on job interviews, and dealing with constant rejection. We dedicate time away from family, gas, pay for babysitters, miss dinner and weekends. You constantly need to be on, or you could miss a opportunity. Once we do close a home, half goes to the other persons agent. We have a lot of upfront expenses that are paid out before we even get paid. These include:
- Broker Splits and Fees
- MLS Fees
- NAR Fees
- Local Association Fees
- E&O Business Insurance
- Extended Auto Insurance
- Self-Employment Tax
- State Licensing Fees
- Advertising Fees
- Showing Service Fees
- Website Fees
- Assistant's Salaries
- Yard Signs
- Photographers
- Videographers
- Office Supplies
- Business Cards
- Property Flyers
- Electronic Lockboxes
- Continued RE Education
- Legal Fees
- Gas
- Transaction Coordinator Fees
- Income taxes are not taken out so we have to put that aside around 25-30%.
As listing agents, we have a lot of tasks that go into selling a home.
1. Prepare Listing Presentation for Sellers
2. Research Sellers Property Tax Info
3. Research Comparable Sold Properties for Sellers
4. Determine Average Days on Market
5. Gather Info From Sellers About Their Home
6. Meet With Sellers at Their Home
7. Get To Know Their Home
8. Present Listing Presentation
9. Advise on Repairs and/or Upgrades
10. Provide Home Seller To-Do Checklist
11. Explain Current Market Conditions
12. Discuss Seller’s Goals
13. Share Your Value Proposition
14. Explain Benefits of Your Brokerage
15. Present Your Marketing Options
16. Explain Video Marketing Strategies
17. Demonstrate 3D Tour Marketing
18. Explain Buyer & Seller Agency Relationships
19. Describe the Buyer Pre-Screening Process
20. Create Internal File for Transaction
... any much, much more
As a buyers agent we also have many tasks.
1. Schedule Time To Meet Buyers
2. Prepare Buyers Guide & Presentation
3. Meet Buyers and Discuss Their Goals
4. Explain Buyer & Seller Agency Relationships
5. Discuss Different Types of Financing Options
6. Help Buyers Find a Mortgage Lender
7. Obtain Pre-Approval Letter from Their Lender
8. Explain What You Do For Buyers As A Realtor
9. Provide Overview of Current Market Conditions
10. Explain Your Company’s Value to Buyers
11. Discuss Earnest Money Deposits
12. Explain Home Inspection Process
13. Educate Buyers About Local Neighborhoods
14. Discuss Foreclosures & Short Sales
15. Gather Needs & Wants Of Their Next Home
16. Explain School Districts Effect on Home Values
17. Explain Recording Devices During Showings
18. Learn All Buyer Goals & Make A Plan
19. Create Internal File for Buyers Records
20. Send Buyers Homes Within Their Criteria
... any much, much more.
We also act as a counselor and advocate, make or set up repairs, clean up messes in homes, yards, and pools, provide accommodations, drive and entertain the clients with our time and money - all before a sale is ever made.
I hope you see why hiring a realtor is great for you. It saves you time, money, and stress. Realtors work hard for you!
Want me to work hard for you? I'd love to! Fill out the contact form and I will be in touch. You can also text or call (619) 880-0030 or email hannah@ohmanrealty.com.