Not having a real estate agent in a strong seller’s market, could cost you thousands.
As the famous saying goes, “There is no substitute for experience.” Nowhere is that saying more applicable than in the world of real estate. Rather than choose a “go it alone” approach to buying or selling your next home to avoid paying realtor’s commission, it makes much more dollars and sense to hire a licensed realtor. Thousands of Kansas City homeowners have been successful by using realtors from established companies such as ReeceNichols, Better Homes and Gardens Realty, and Keller Williams Realty.
Given the brisk pace of existing and new home sales as well as the shrinking number of homes on the market, there’s no doubt that we’re in the midst of a very strong seller’s market. Historically, whenever there’s been a seller’s market, a certain percentage of homeowners opt to list their homes on their own rather than hire a realtor to help them. At the same time, a small percentage of home buyers think they can surf the internet on their own and find their dream home rather than hire a buyer’s agent. These buyers and sellers are potentially making a big mistake by exposing themselves to all kinds of risks - the kind of risks that can (and frequently do) cost them thousands of dollars.
Let’s review the basics of buying and selling a house and look at the ways that a realtor from an agency such as ReeceNichols, Better Homes and Gardens Realty, or Keller Williams Realty can help guide you through each step of the process.
To begin with, be sure and interview at least three different agents ahead of time to get a sense of who you think will best represent you and your interests. Many clients simply settle for the first realtor they contact but the marketing skills and marketing resources of realtors can vary every bit as much as their experience and expertise. It pays to shop for an agent.
Second, whether you’re a buyer or a seller, make sure and get preapproved by a mortgage lender, like James B. Nutter & Company, first. By submitting some basic financial information to your lender, they can quickly review your credit, employment, income and debt situation and give you a Preapproval Letter which you can share with your realtor. Armed with a Preapproval Letter, you and your realtor can enter the arena and make an offer on a house with the confidence of a cash buyer. But perhaps even more importantly, if you’re a seller in this market, you have to be prepared for the prospect of a quick sale and thus the need to buy your next house quickly. A Preapproval Letter can help you be prepared for this contingency.
Finally, in addition to providing you with expert marketing and pricing advice, your realtor can help you navigate the complicated home inspection process which is more important now than ever. In today’s market, many sellers are offering their houses “as is” or have quickly placed their homes on the market without doing the basic maintenance that sellers used to do. As a result, many issues can pop up during the home inspection. Your realtor can not only recommend a good inspector to use but if your inspector detects a problem, an experienced realtor will also know how to effectively negotiate these problems on your behalf.
So don’t succumb to the temptation of “going it alone” in this real estate market just to avoid the cost of a realtor’s commission. If you’re a buyer, your realtor will split the commission with the seller’s agent anyway, which doesn’t cost you a penny. If you’re a seller, not only can your realtor market your property much more effectively for you, but they can help you avoid the types of financial mistakes that can end costing much more than the cost of their commission. Regardless, there is no substitute for experience in the real estate business and thousands of homeowners choose to work with realtors from agencies like ReeceNichols, Better Homes and Gardens Realty, or Keller Williams Realty.
- Nutter’s Home Buyer’s Guide
- First-time Home Buyer’s Resource Center
- Getting Preapproved
- Blog: Apps like Zillow, Trulia and Realtor.com Make Home Searches Easier
- Blog: Equifax Data Breach Proves the Importance of Getting Preapproved
- Blog: How to Choose the Right Mortgage Lender