When buying or selling a home, you have two options: you can do it yourself or you can hire a Realtor. Sometimes FSBO (for sale by owner) can be the practical choice for people who have the industry expertise and real estate knowledge. For the large majority of prospective buyers and soon-to-be sellers though, working with a Realtor will save enormous amounts of time and money making it a worthwhile investment.
There are several factors to consider when deciding whether to hire a Realtor or go the FSBO route. The best thing you can do to set yourself up for a successful home buying and selling experience is to be informed about your options and understand the intricate work involved. Here are a few of the ways that a Realtor can save you time and money.
Realtors will help you set the right list price.
In order to sell your home quickly and at the highest price, it needs to be priced accurately. It may seem counterintuitive, but overpricing your house can instantly devalue it. There is no simple formula such as per square foot pricing or using comparable neighboring properties’ values. There are many moving parts that go into the equation for measuring the value and figuring out the right price for your home.
A Realtor will help you launch your listing at the optimal price. Realtors are able to use market data, real estate trends, and timing — to name a few — to your advantage when calculating the proper price of your listing. They will also help you stage your home and take the pictures that highlight its best features. Additionally, an experienced Realtor will be able to tell if the price is in the right range based on the amount of prospective buyers reaching out after the property is on the market for a certain time period.
Realtors will market your property favorably and can help you strategically increase your home’s curb appeal.
Realtors and real estate agents can guarantee maximum exposure for your listing through the multiple listing service (MLS) which they have access to as a certified agent. Alternatively, sellers opting to FSBO will have to pay out of pocket for each instance of marketing and advertising of their property which quickly adds up.
Realtors will cover the cost of your marketing and know the best ways to optimize the advertising services. Another benefit to Realtors is the power of their network. They can leverage their contacts and promote your listing to other agents as well as their clients in the market for buying.
Another reason why Realtors are a smart investment is that they help sellers get the most value of their home by helping you make strategic curb appeal improvements. A good rule of thumb is that a seller can expect to get back twice the amount of money they put into the improvement. This is where the Realtor comes in — they will be able to help you decide which improvements to make and stretch your money so it has the biggest impact on the listing price.
Realtors will take care of the showings for you.
It’s easy to underestimate the time and effort that home showings actually take. It can end up taking a big chunk of your day not to mention the preparation time, prospective buyer communication, and scheduling. It can be extremely time-consuming, not to mention exhausting. A Realtor not only takes care of the leg work for all of the showings for you, but they also have the knowledge and experience to “sell” the home to the people who are interested.
Also, Realtors have keen insights into the types of people who are present at the showings. An astute Realtor can distinguish between the “looky-loos,” the investors, and the average buyers based on their types of questions. Having this information helps the Realtor communicate more clearly and focus their time accordingly at the showings to maximize their effort, getting you to your selling goal quickly.
Realtors take care of legal matters for buying and selling including contracts and paperwork.
People who are going the FSBO route who are not familiar with the legal side of things may find themselves in a difficult position when needing to finalize a contract. Worst case scenario, FSBO sellers could run the risk of legal problems because they are less familiar with the legal process and real estate laws.
Leaving the paperwork to your Realtor can give you peace of mind knowing that everything will be executed following the necessary procedures. A Realtor will take a fine-tooth comb through the contract and addendums to ensure everything is in line with what you’d expect. In addition to the contract, you Realtor will also take care of the documentation for property disclosures which keeps you in the clear from future liabilities.
Hiring a Realtor gives you a major advantage as a buyer.
Some people incorrectly assume that when buying a home, they should just work with the listing agent who is selling the home. This is a misguided assumption because the listing agent already has an established relationship with the seller and incentive to make them happy, making it difficult for them to be neutral in the matter.
As a buyer, you won’t be paying anything out of pocket to have someone represent you — the commissions have already been set in the listing agreement so hiring a Realtor is a wise decision. Your Realtor will be able to step in on your behalf to negotiate rigorously for your best interest (the lowest price). Without a Realtor, you’re essentially on your own, and having a professional negotiator without emotional ties to the home is key.
Likewise, Realtors are important in the buying search for the perfect home. When buyers are on their own, they risk wasting their time and energy by looking at the wrong places and are missing opportunities that go unnoticed. Finding the right home is often a long process, and your time is valuable. Realtors can help save you time and money because they understand this complex industry and have the know-how and resources to do the heavy lifting and search efficiently and effectively for you.
Realtors are one of the best investments you can make when it comes to buying or selling a home. Now that you’re aware of all the ways a Realtor can you save time and money, hire an experienced San Diego Realtor today!