It might seem like a smart thing to do: forgo a real estate agent when buying or selling a home to save on commissions paid. Don’t do it! Really, it’s a bad idea. Here are…
5 Reasons You Should Never Buy or Sell a Home Without an Agent in New Jersey
Negotiations Middle Man
A real estate transaction is filled with a ton of negotiations. It isn’t just the purchase price that gets negotiated. So what happens when you really don’t want the deal to fall apart because the home appraisal came in lower than expected?
Your real estate agent is the bad guy, dealing with the other party to professionally get your wants and needs across without offending the anyone and killing the deal. This is one of the key skills that a real estate agent brings to the table and it should be utilized.
It draws upon the extensive experience of someone who can legitimately say, “It works this way 80 percent of the time and that is what we expect here.”
Rolodex of Resources
Real estate agents are connected; its just part of what they do. Not only do they know other real estate agents who may have the perfect buyer or seller for you, they also have reputable resources for home appraisals, inspectors, escrow and title companies. A good real estate agent also helps with insurance, home warranty, and contractor recommendations if you don’t know where to start.
Additionally, they know where to find information if you don’t have it. If the land survey comes back questionable for any reason, your realtor knows where to find the original survey information and how to contest reports. There can be some 20 different people involved in a real estate transaction; your agent knows what the role is of each getting you to the close of escrow.
The last thing you want when closing a real estate transaction is for the deal to not be legitimate. Real estate agents are experienced with the contracts and state and federal laws. Their job is to make sure all disclosures are made, everything is filed timely and the contract meets all legal requirements. If you don’t have an agent, you can’t be sure all of these are met – at least not without a ton of extra due diligence.
Let’s face it; we all get emotionally attached to a home. If you’re selling it, you have all the memories that make you feel the home is worth more than it might be. You also don’t always price it based on real market conditions – what your neighbor sold his totally remodeled home with a pool isn’t the same as your fixer upper. Buyers are buying a dream for the future but may be scared about the large investment.
In this process, there are a lot of emotions. A real estate agent helps you navigate what are legitimate concerns and what is an emotional reaction. They will sift through data to help you understand the real risks and value within the transaction. They become the sounding board of reason.
Market Industry Muse
You might feel like you have a pulse on the real estate market in the area, but is it what you live and breathe? Probably not! Real estate agents are watching listings sit or sell like hotcakes. They have brokers holding market update meetings and speak with mortgage representatives about the direction of interest rates. They also know the ebb and flow of the sales season.
Did you know why selling before Labor Day is smart? Or how to have a winter open house work toward your advantage in selling your home fast? Real estate agents do! They know the annual trends and the specific market data. This can mean the difference in a house sitting on the market too long for sellers or buyers not being able to get an offer accepted.