Cutting costs is one of the main reasons why most people think twice about using real estate broker when selling a property or shopping for one. While there are those who are capable of carrying out a negotiation on their own, having a licensed professional who is familiar with the process may help save money in the long run. Any unforeseen situation can end up being more expensive than the 3 percent commission that most have been trying to avoid from the beginning.
Before shutting your door on whether you should use a real estate broker or not, consider these five reasons why it helps to have one.
1. Real Estate Brokers Are Experts at Pricing
One misconception about valuing is that you can just simply compare prices online and immediately put a price tag on your property. Underpricing and overpricing can cost you thousands, and here’s why.
Having a licensed professional who is familiar with the process may help save money in the long run.
Overpriced properties tend to be ignored by potential buyers, especially those who have real estate brokers shopping for them. Until the price becomes reasonable, your property will sit in the market for weeks, months, and in not-so-rare cases—even years. And you can’t just sit on an unused investment—it would be throwing away money on realty taxes and association fees.
This applies to underpriced properties, as well. Misinformation about the actual price of your property can cost you less than what it’s really worth. There is only one advantage to this, and it is that you can get rid of your asset quicker.
Here is why it pays to use a real estate brokers: they are experts at determining whether a property is overpriced or not. They can recommend appraisers, should you need one. And because they have your best interest in mind, you know that they will guide you properly during the pricing stage.
2. Real Estate Brokers Know How to Evaluate Properties
Unless you intend to make buying a property a part-time job, you would need the help of an experienced broker to do the shopping for you.
Real estate broker can detect faulty structures and conditions that can result to additional costs after purchase, and give you a proper estimate of how much you might need to spend for renovation.
They are also knowledgeable in the valuation of properties in different areas, and can help you understand why some prices in the same area are more costly than others.
And because buyers have specific requirements for their future investment, a broker can help narrow down the list of possible properties that would best suit their client. All the buyer has to do next is visit the property and hope that it meets his or her standards.
On the other hand, if you are the seller, an experienced broker can help recommend simple improvements to help attract more buyers into purchasing your property, as these licensed professionals understand what buyers are really looking for and know how to position a property so that it would sell at the highest price possible.
3. Real Estate Brokers Are Experienced Negotiators
A broker’s job is to be a liaison between buyers and sellers, so expect them to be experts in negotiating with other agents—more so with property owners without representation.
While there are those who are good negotiators themselves, the disadvantage of not having a broker, when the person you are cutting a deal with is represented by one, is not having the upper hand.
Ending up with a sure buyer who intends on getting a loan will require an appraisal. If the appraisal comes in low, and you don’t have a broker to back you up, chances are you would end up having to adjust your price.
This is where it pays to use a real estate broker. They know how to challenge a low appraisal.
4. Real Estate Brokers Have Access to Listings of Other Brokers
Brokers share information and have access to properties that each other’s listing. This makes finding the property that meets their client’s criteria easier for them.
However, as a buyer without a broker, you will surely undergo the time-consuming process of shopping online, inquiring through text or call, and viewing properties that may or may not fit your needs.
The same burden applies when you are the one selling a property. Interested parties will make inquiries that, most of the time, are already answered in your ad. Unless you have the time and patience to accommodate their calls and texts, you’ll be fine. But expect cases when potential buyers will make viewing appointments and not show up at all.
5. Real Estate Brokers Will Do the Paperwork for You
One of the best things about getting a real estate broker is having someone prepare all your documents, check your finances, prepare your contract of sale, and make sure that the closing process is handled smoothly. As experts in their field, you can rest assured that all legal matters are properly taken care of.