In this era, when everything seems available on the Internet and we appear just a click away from buying anything from a new bathing suit to a new yacht, why should we bother with a real estate agent? Good question and it bears a real discussion.
Why can’t sellers and buyers just deal directly and cut out the middleman? After all, 6 percent commissions are expensive and won’t buyers ultimately pay less when this fee is taken out of the equation?
Not necessarily. A real estate broker is presumably a professional and as such, has accumulated all kinds of information you and I simply do not have. They’ve studied the laws related to real estate, know how to read and draw a contract of sale, and most importantly, know your marketplace like the back of their hands. They know what’s what, and what properties are actually worth today, and probably yesterday and even tomorrow. This information which they will impart to you as a seller or buyer can ultimately mean that you pay the right price for the best property for you, in which you are happy living for many years.
Let’s look at it from both points of view, seller and buyer. If you’re selling, you want to get the best price for your property, sell it quickly and have the process go as smoothly as possible. Here’s what the broker is doing for you. First of all, since he knows the market, he’s recommending a selling price that puts you in the best position in relation to your competitors. You could be wasting a huge amount of time trying to sell your own home when you haven’t seen what’s out there. The broker has so he can zero in on the price that will move your property. Next, he knows something about marketing and how to draw in those potential buyers who would never find you otherwise.
When he brings those buyers to you, he knows what to say. You don’t, because you’re looking from a very one-sided view, but he has the whole picture. He has met the potential buyer and knows what to highlight about your house that is pertinent to that individual while you haven’t a clue.
When the broker sees that he has interest, he knows how to capitalize on it. If the prospective purchaser is contemplating an offer that the broker knows is unrealistic, he can guide the buyer into striking territory. When he presents the bona fide offer to you, the seller, you will have no knowledge of this discussion, and no ability to be personally offended. You will be pleased and able to move forward with negotiations.
From the buyer’s point of view, the benefits of having a middleman facilitate a purchase are legion. The broker may have information about properties not yet listed or advertised, and will be able to give you a broad view of what’s available in your area of interest. He can help you to determine what you can comfortably afford, and recommend lenders best suited to your financial situation. When it comes to presenting an offer, he can say the things you cannot say to the seller. He can reveal problems with the property uncovered in an inspection that might mitigate the asking price and he can present these in a way that takes the pressure off you.
Buying or selling a house is an emotional experience and both parties involved need help in getting through what can be an ordeal. A real estate broker is a mediator, and a guide, and sometimes functions a bit like a psychologist. Though the Internet can surely be advantageous in scrolling for available properties, and may provide an evening’s entertainment, the one thing it cannot provide is the intangible – the human component.
The broker has the information, to bring the parties through the process. More than that, though, he has the finesse to bring them through with smiles on their faces and marching into their new futures with a feeling of satisfaction and promise.
That’s worth a lot, and should assure brokers keep their jobs even given the tech-crazy world we now call our own.
Del Phillips is a California Licensed Real Estate agent. He is a member of the National, California and San Diego Association of Realtors. You can reach Del at Ascent Real Estate at 619-298-6666 or at Del@DelPhillips.com DRE LIC #01267333.
Great article! I recently had multiple offers on a condo I listed and one of the offers was from a buyer who had no buyer agent representing her. She structured an offer that simply failed and she was noticeably upset with me because I didn’t counter her offer that was $30,000 below asking in a very aggressive multiple offer situation. I offered her some perspective on the value of working with an agent, but some people think they can navigate on their own, and get nowhere.
Another buyer client of mine was ready to pay full asking price for a property and I felt strongly they should start low and hold their stance. The sellers counter-offered and I once again told them to stay put. They listened to me and when all was said and done, we secured the deal at $40,000 below asking price. My expertise saved them $40,000! That’s a lot of dough over the life of a loan!