Pros and cons of using a realtor
Correct answer to the question, whether the home buyer should obtain the services of a realtor, real estate agent or broker, depends on the specific situation of the buyer and seller. However if we take the general situation for examination, we can come to certain conclusions regarding the utility of a real estate agent and the desirability of obtaining the services of a one.
Main reason why sellers do not like to obtain services of real estate agents is the amount of commission that has to be paid. Buyers will also expect a lower price since both the buyer and seller are dealing directly without the middleman.
Given the motivation of both parties it is unlikely that both buyer and seller will get a better deal than if they dealt through a real estate agent. Studies have shown that this is in fact the case.
That there are no measurable benefits in the general case may be why that vast majority of real estate transactions, about eighty two in hundred to be exact, are carried out through a realtor.
On the other hand, there are several benefits that accrue from the employment of a real estate agent. Most obvious is the fact that realtor will be able to resolve any problems that may arise throughout the process of transaction using his or her experience.
In addition to that, there are several advantages of using realtor. They have access to the MLS or Multiple Listing Service so they can get accurate data about almost all the homes on sale in an area. They will be able to bring to buyer’s notice the type of home he is searching for. The real estate agent will know the neighborhoods and will provide the buyer with direct access to homes on offer, to inspect them. In other words, use of realtor will definitely help ease the process of finding a home.
In addition, realtor will assist in the drafting of offer documents and negotiations. The advantages to a seller may be even greater in that they will be able to market the home through a listing in Multiple Listing Service. Realtor will also advise the seller on the appropriate price at which he or she can sell the house using their knowledge of the market. Additionally the real estate agent will be able to advise the seller on the legal obligations that will have to be fulfilled so that seller does not become liable for legal action after the transaction is complete.
Given the advantage that can accrue from selecting good trustworthy real estate agent and the significance of the transaction to home buyer it is important to choose correctly. Generally it is better to select an experienced full time agent who handles large number of transactions over a new one. That is because as described above part of the advantage of using a real estate agent comes from their knowledge of the market and their access to information. If the buyer is going to finance the transaction through an institutional lender, they may be able to refer the buyer to a reputed realtor.
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That’s a trusted realtor will definitely help ease the process of finding a home to the clients, assist in the drafting of offer documents and negotiations and be responsible in it’s problem… nice article