In our digital world it may seem like a good idea to sell or buy a home without the help of a licensed real estate agent. Of course you can do it but why would you? To save the money that will be paid in commission is the only reason but is it worth it? This is most likely one of the largest transactions of your life. Is this the time to save 4 - 5 percent? What are you giving up if you do it yourself?
From their market knowledge, negotiation skills, and professional networks to emotional support and risk management guidance, real estate agents are essential to achieving a successful and efficient home sale. In a complex and ever-changing real estate landscape, having a seasoned professional on your side is not just an advantage—it’s a necessity.
For a buyer the process starts when you start shopping for a home. Buyers can easily identify properties through myriad of apps and online websites but what happens next? Does a buyer know how to prepare an offer? Do they know how much to offer based on the neighborhood comparable sales? Does the buyer know what to inspect once they get in escrow? Does the buyer know about high fire zones and insurance? What if an inspection report comes back and the property is missing stem wall? Is that a problem? What does a buyer do about it? A agent will help you navigate these issues and more.
In the fall I had two deals where I represented buyers who each had made offers on homes that ended up having minor foundation issues. In neither case did the buyers know how to deal with their concerns but with my help we were able to get the sellers to provide a credit to the buyers of about $9000 each to fix the issues. If you didn't have a seasoned professional on your side would you know what to do?
For the sellers the two biggest reasons to use an agent are risk management and marketing. An agent will be able to put together a marketing plan to get your property seen by the right audience. Other than using a "For Sale" sign in your front yard and your personal social media, how would you market your property to ensure you get exposure to a wide, well qualified group which, ideally, will result in multiple offers and a bidding war? After you get an offer do you know what to do from there? Are you too emotionally attached to the property to negotiate well for a good price? What disclosures are required by the State of California? Where do you find those forms? Who handles the money for the transaction? What happens if the buyers want to cancel the day before close of escrow? These are all things a professional realtor (or in my case a broker) will help you with.
There was a good article on the indispensable role of the real estate agent on the WRE recently. It goes into more details on the benefits of using professional help. As a good friend and client of mine said to me recently, "People have to have HOT put on their take out coffee so they don't burn themselves. Why do they think they can sell a house?" Sarcastic but it makes a good point.