Sean de Moraes column: Realtors a big help when buying or selling a home
If you’re thinking about buying or selling a home this year yourself or with a limited service brokerage, you may want to think otherwise.
Most buyers wouldn’t even consider purchasing a home without a Realtor representing them in the transaction. While most For Sale By Owners will pay a buyer’s agent a commission, others will not. Beware if purchasing from someone who won’t work with a buyer’s agent; odds are they are probably trying to hide something that a licensed Realtor would help you discover or really don’t know what they are doing that can lead to future problems.
Unrepresented sellers or those using limited service brokerages might not want to pay a full commission because they think they will save money. Some of them will lose a substantial amount of money, though, because they think the cost of paying a full commission costs more when often good agents will pay for themselves through good negotiations.
Many sellers are confused about how the whole commission structure works, and it’s because it is often not explained well. Furthermore, sellers also don’t realize that their broker doesn’t make a salary or an hourly wage. They will be doing all the work to sell your home, and may never see a paycheck because the commission only gets paid upon a successful closing.
When it’s time to sell your home, you should consider what a broker brings to the table:
• Marketing, advertising, signage, support and photography to start.
• The time of showing your home, hosting open houses, managing showings, following up with showings, setting up legal representation for paperwork, and conducting an unbiased/unemotional negotiation with buyers.
• Retrieving phone calls at all hours of the day and night answering questions about your home and weeding out time-wasters by asking the right questions.
• The legal protection that comes with working with a licensed broker in the state of Colorado.
• A local broker will provide a seller with professional market knowledge and help properly price a home to get a seller the most money possible for their home. There is so much more to pricing a home correctly then just looking at the sold prices around it. Floor plans, views, local knowledge, history of home, quality of construction, etc…
• A larger pool of buyers from their professional resources. Furthermore, using local brokers will only benefit sellers as they often converse with one another, tour homes together, collaborate with one another, trust each other, and often are able to put deals together before a home may hit the market because they are aware of what the buyer’s other agents are using and will reach out to them.
Time to buy? Some things to think about:
• You’ll have to negotiate your own deal. Buying a home is a major purchase, and there is much more at risk than buying a car.
• Without a local Realtor, you won’t have a specialist in the market. How would an out-of-area broker or buyer working on their own know historical facts about a neighborhood that may not be disclosed?
• Without a local Realtor, a buyer is left how to decipher what a home should be worth and if they are offering an appropriate amount.
• Without representation, would you know how to build in the proper contingencies to protect yourself throughout a transaction?
Sean de Moraes is an agent with Roaring Fork Sotheby’s. He can be reached at firstname.lastname@example.org.