No one really needs a broker to find a home. The internet has leveled the playing field by giving consumers access to pretty much the same information about houses for sale as a broker has access to. But advertising a home for sale or finding a home to buy is just part of the process. An experienced real estate broker can help you avoid mistakes and pitfalls in the home buying and selling process. People that represent themselves in real estate transactions can do ok. But often, a broker could have gotten the seller more for their home or gotten a buyer a better deal on a home. Here are 10 reasons why you should consider hiring a real estate broker to represent you.
1. Education and Experience
When you have a problem with your furnace, do you call an expert or do you try and handle it yourself? If you are like most people, you call a furnace specialist because they have the education, training and experience to handle the situation. The same is true for hiring a real estate broker. A broker is trained, educated and experienced in buying and selling homes. They understand the intricacies of negotiation, contracts and closings. Don’t you want someone that is on your side, who represents you, that knows what all the legal jargon means and can navigate you throw common pitfalls that happen during the selling/purchasing process? Why waste your time trying to become an expert in real estate when there are people out there that already are experts? The only trick if finding the right broker to represent you!
2. Brokers are filters
A good broker will sift through the junk of property showings and visits. If you are a buyer, they will preview prospective properties to make sure that they fit what you are looking for. If you are a seller, they can mitigate the phone call leads that lead nowhere and encourage serious buyers to put in an offer.
3. Knowledgeable about the neighborhood
If you find the right broker, they will have specific knowledge or know where to find the industry buzz about the neighborhood you live in or want to live in. Brokers will be able to find comparable active and sold homes and will be able to provide you with a current market analysis of the neighborhood. They will also be able to direct in finding information about demographics, schools and crime. For example, a house down the street from yours may have been listed for $425,000, but a broker will be able to give you specific information about how much it sold for, what kind of upgrades it had, how long it took to sell, and if it ever came back on the market due to inspection issues or financing issues.
4. Understand the Market
Despite what some people think, brokers do not set prices for buyers and sellers. A good broker will use the market to consult a client to make a good decision for themselves. A selling broker that represents a buyer will tell the buyer to consider all the information that the broker has supplied to the buyer and will ask the buyer what offer price they would like to put forward. The negotiating strategy used by the broker will be based on market conditions, supply and demand. The same is true for a listing broker and a seller. A good broker can only recommend a list price to the seller, based on their knowledge of the market and comparables that have sold. A seller is has the most vested interest in the sale and has got to be comfortable with the list price.
5. Market Conditions Information
Real estate brokers have access to the latest and most accurate market condition information and that is going to determine your buying or selling process. The factors that determine market conditions include: price per square foot of similar homes, median and average sales prices, average days on market, and ratio of list-to-sold prices. These criteria, among others, will have a huge impact on what you, as a buyer or seller, decide to do.
6. Professional Networking
Real Estate Brokers have built relationships with other professionals that provide services that you may need in the buying and selling process. Although many brokers are hesitant, due to legal liability, to recommend one individual or company over another, they do know vendors and can refer you to several that have a good reputation for reliability, efficiency, competency and competitive pricing. This way you can make an educated decision regarding contractors needed to complete the sale or purchase of your home.
7. Negotiation Skills & Confidentiality
Negotiating is an extremely important part of the real estate process. Top producing brokers are good negotiators because they are practiced and skilled at it. In addition, unlike the buyer and the seller they don’t get wrapped up in the emotion of the transaction. Good brokers are professionals who are skilled at presenting their client’s case to the other side. They also have a fiduciary responsibility to the client and will hold client information confidential from competing interests.
8. Stacks of paperwork
The Colorado Contract to Buy and Sell Real Estate is 13 pages long. That doesn’t even count all the Colorado Real Estate Commission required forms and disclosures. One error, omission or mistake to cost you a lot of time, money or headaches. Real Estate Brokers are trained to understand the ins and outs of these contracts and help make sure that nothing is missed.
9. Answer Questions After Closing
A good broker will be there for you even after the house is bought or sold and all the documents are signed. Issues come up and an honest and trustworthy agent will not leave you to hang in the wind.
10. Relationships are How Brokers Stay in Business
Building and maintaining relationship is how a good real estate brokers stays in business. The best brokers understand that their business depends on making sure that their clients are happy and satisfied with the service that the broker provides. No agent would survive if they had to consistently drum up new business. This means that an agent that stays in business will be there then next time you need to hire an agent. It also means that if you have questions or need updates on the market, they will be happy to oblige.