Top 10 Reasons to Hire a Real Estate Agent

From Elizabeth Weintraub ,
Your Guide to Home Buying / Selling .
FREE Newsletter. Sign Up Now! With so much information readily available online, clients sometimes ask me, "Why should we hire a real estate agent?" They wonder, and rightfully so, if they couldn't buy or sell a home through the Internet or through regular marketing and advertising channels without representation, without a a real estate agent. Some do OK, many don't. So if you've wondered the same thing, here are 10 reasons why you might want to consider hiring a professional real estate agent.

1. Education & Experience

View Full-Size You don't need to know everything about buying and selling real estate if you hire a real estate professional who does. Henry Ford once said that when you hire people who are smarter than you are, it proves you are smarter than they are. The trick is to find the right person. For the most part, they all cost about the same. Why not hire a person with more education and experience than you? We're all looking for more precious time in our lives, and hiring pros gives us that time.

2. Agents are Buffers

Agents take the spam out of your property showings and visits. If you're a buyer of new homes, your agent will whip out her sword and keep the builder's agents at bay, preventing them from biting or nipping at your heels. If you're a seller, your agent will filter all those phone calls that lead to nowhere from lookie loos and try to induce serious buyers to immediately write an offer.

3. Neighborhood Knowledge

Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.

4. Price Guidance

Contrary to what some people believe, agents do not select prices for sellers or buyers. However, an agent will help to guide clients to make the right choices for themselves. If a listing is at 7%, for example, an agent has a 7% vested interest in the sale, but the client has a 93% interest. Selling agents will ask buyers to weigh all the data supplied to them and to choose a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.

5. Market Conditions Information

Real estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.

6. Professional Networking

Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Due to legal liability, many agents will hesitate to recommend a certain individual or company over another, but they do know which vendors have a reputation for efficiency, competency and competitive pricing. Agents can, however, give you a list of references with whom they have worked and provide background information to help you make a wise selection.

7. Negotiation Skills & Confidentiality

Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction and because they are skilled. It's part of their job description. Good agents are not messengers, delivering buyer's offers to sellers and vice versa. They are professionals who are trained to present their client's case in the best light and agree to hold client information confidential from competing interests.

8. Handling Volumes of Paperwork

One-page deposit receipts were prevalent in the early 1970s. Today's purchase agreements run 10 pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local custom. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands. In some states, lawyers handle the disclosures, thank goodness!

9. Answer Questions After Closing

Even the smoothest transactions that close without complications can come back to haunt. For example, taxing authorities that collect property tax assessments, doc stamps or transfer tax can fall months behind and mix up invoices, but one call to your agent can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Good agents stand by ready to assist. Worthy and honest agents don't leave you in the dust to fend for yourself.

10. Develop Relationships for Future Business

The basis for an agent's success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on consistently drumming up new business. This emphasis gives agents strong incentives to make certain clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire an agent again. Many will periodically mail market updates to you to keep you informed and to stay in touch.

A 2005 study by David Lereah, the Chief Economist for the National Association of Realtors (Worlds Largest Trade Group), stated the following facts about where buyers first learned about the home they most recently purchased.

Real Estate Agent: 37%
Internet: 23%
Yard Sign: 16%
Newspaper Ad: 6%
Friend/Neighbor 8%
Home Builder 7%
Knew the seller 3%
Real Estate Pub. 1%

Now ask yourself why almost all agents rely on ads in the home magazines. It is for two reasons. One is to generate listing appointments, and the other is simply not being aware of what actually gets homes SOLD. Most agents will tell you that the first 30 days that your home is listed are the most important. Now let me ask you this. If you are trying to sell your home in an average market, and your agent has priced it perfectly, do those ads that come out once a month really matter much? This brings me to my next point.

62% of an agents business comes in the form of referrals from past clients, friends, family members etc. This is why I have based my business on customer service and satisfaction. As a result, I have focused the majority of my time on staying in touch with my client base, and this is what really sells homes. I am a firm believer of applying basic models of success, then adding your own innovation. NOW Let me tell you why I get results. Many of you have heard of the Pareto principle, or 80/20 rule. This states that on average 20% of your time, accounts for 80% of your productivity. The inverse of this, is that 80% of your time is spent accomplishing 20% of your productivity. If you are aware of this fact, then you become an expert at identifying the tasks that matter most, and therefore focusing more time on them.

What most agents won’t tell you is that 80% of their time is spent chasing down clients, when agents, and now the internet, are what really sell homes. Don’t misunderstand me, I am not completely against paper advertisement, but I do believe that the ads themselves, and the leads they generate should not account for more than 20% of your time or budget. Most REALTORS fail to realize that our real sales power is not in marketing to buyers, but in marketing to other REALTORS. After all, the facts show that they are, and have been the number one way for buyers to find a home. THIS IS WHERE I GET RESULTS.

The first thing I need to discuss, is how I will represent you. As your exclusive listing agent, I will represent only your best interests throughout the entire listing term. I will be obligated by law, personal values, and ethics, to do inform you of any information that may help you in the sale of your home. Please read the NC Real Estate Commisions’ flyer titled “Working with Real Estate Agents.” This will ensure that you are well aware of who represents you during one of the biggest events of you life. I do not practice dual agency. I will also review it before we begin discussing the sale of your home.

Upon listing your home you can expect first rate customer service. I will explain to you the ins and outs of the real estate industry, and layout a clear and concise marketing strategy. By far the most important factor in selling your home quickly, or possibly at all, is PRICE. I have the tedious responsibility of pricing your home so that it sells in a timely fashion, for the most amount of money. You may ask what is a timely fashion? That is relative. This is why I offer a price range for all of my listings. Based upon previous market conditions, I give the likely time frame that your home will sale at each price break. I am not opposed to taking listings that I do not expect to sell for 6 months. I do not however, take listings priced outside of the 6 month time frame. I am a firm believer that although my job is extremely important, nothing trumps the logistics of supply and demand. The number one reason for homes not selling is because they are priced too high. It is my job to set the right price. After that, we can focus on my other duties which are: Market the home to agents and prospective buyers, negotiate the highest possible sales price for you, see the sale through to the closing table, and finally, make sure to be there for you years after the sale.

Buyers:
I typically work with two types of buyers. Investment buyers, and permanent residence buyers.
So you are making your first move in what has probably been years. With that being the case it is exceptionally important that your agent know the area. As a resident of Wilmington NC my entire life, I have watched Wilmington grow from a sleepy port town to a bustling micropolitan. I could not think of a place that I would rather live. From Wrightsville Beach to Brunswick County I stay aware of the changes that will affect you. I realize that great communication is the number one key in finding a home that you will be happy with for years and years. Therefore, I always evaluate your exact needs before beginning the hunt. And best of all, my services are FREE to you. Let me find your next dream home today!

Investment real estate is one of my favorite topics. I enjoy researching history, as well as future trends. I feel that timing, and careful planning are the two most important factors when considering investment property. Long before making a purchase you should consider the following items.
Where will the money come from?
Is this a primarily income producing property, or is it a second home with income potential?
How can I maximize my tax savings throughout the purchase and management?
How involved do I want to be in the management?
10 or even 20 years from now will I be able to afford issues such as HOA fees, insurance, etc?
Am I aware that Mother Nature could possibly render my property uninhabitable for a year or more?

These are all very important questions that you should be able to answer confidently before investing. Of course it is always a good idea to consult your CPA as well, however, do not lean on their advice only. Do your homework. And of course I am here to answer any and all questions you may have.

My background in beach property management has uniquely prepared me for the investment real estate arena. For years I have dealt first hand with the following aspects of investment real estate. Now I am taking this knowledge to you the consumer.

Analyzing cash flow
Analyzing tax benefits of purchasing, managing, and selling investment real estate.
For instance, did you know that it is possible invest in real estate tax free with your Roth IRA and other retirement funds.
Renovating
Renting and managing
Repairs and Maintenance
Selling to maximize tax savings

If you would like to talk more, email or call. I look forward to discussing your next investment today!

Hire a Professional Real Estate Agent

A qualified, competent real estate agent will help you navigate the myriad of decisions that arise when buying and selling a home. An agent provides value to the homeowner in many ways:

Pays for all marketing and advertising costs.
Adds experience and expertise in all aspects of the sales process including marketing, financing, negotiations and more.
Handles all showings.
Brings a network of known, trusted real estate professionals. If your agent doesn't have the answer, he or she likely knows someone who does.
Always has your interests in mind so you always have someone on your side.
Can handle and advise on all price and contract negotiations.
Provides you with all the possible options and opportunities without holding back.
Gives an unbiased, realistic view of your home and your options. Unlike buyers and sellers, an agent has no emotional attachment to property.
Has the knowledge to help you ask the right questions.
Being a third party, potential buyers are more likely to tell your agent the truth about your home, even if it is unflattering. This objective viewpoint will help you make the necessary changes to get your home sold.
Your time is valuable. A real estate agent allows you to spend your time how you want.