How Do Real Estate Agents Save You Money?
There are many people out there who have been trying hard to sell their homes for well more than a year and still don't have any results. While Covid did put a damper on the real estate market last year, another big reason a lot of people cannot sell their homes is that they decide to list them independently, believing they will save money, and they just end up sitting on properties that won't sell. While it might not be everyone's favourite thing to do, hiring a real estate agent remains the best way to sell your home. Though the primary concern here from most people is that hiring an agent will mean spending even more money, especially once they take a commission.
Is this true? While it is true that agents earn a commission off of selling your home, it's not true that this saps up all the profit. With the right agent in your corner, you're going to end up earning so much more for your home that you won't notice that commission. Plus, the right agent is going to help you save more money along the way.
5 Ways Professional Agents Can Save Money
1: Better Home Pricing
Making money is saving money in the context of real estate. The less profit you make on your home, the more you end up spending overall. Therefore, having an agent who's going to list your home for the right price and actually get that price met means that you're saving a whole lot more than if you were to list independently. Even if we could cancel out those dozens of different things like deeds, mortgages, paperwork, closing costs, etc., the fact is that an agent can sell your home for a higher price. It's what they do.
2: Home Staging
One of the best ways to turn a bigger profit with your home, and especially to ensure it has a better chance to sell, is to stage the home in a way that appeals to potential buyers. A home that's properly staged gives potential buyers an idea of what to expect and entices them to make the purchase. Home staging can be rather expensive, however. A qualified real estate agent can save you a lot of money here with the staging.
3: Industry Ties
The right agent also has a lot of ties in the market in general. When staging an open house, for instance, this is something that's typically a pretty big expense. You're essentially throwing a party here that has to be advertised properly for a good turnout. An agent with ties in the industry can more effectively market your home's listing for far less of a cost, giving you a broader range of potential buyers.
Negotiations can end up costing you a lot of money. Say you have your home listed for around 250, and someone comes in with 175 as an offer. Obviously, people are offering low because they expect the negotiation to go back and forth until which point they're paying less than 250. The issue here, however, is that people who don't use agents end up losing money on their negotiations, believing that the potential buyer has the leverage. This isn't the case. A real estate agent is going to command a higher price for you.
5: Saving Time
Time is money. It's a cliché, but that's because it's true. The more time you spend selling your home, the more money you lose. Houses that have been on the market a while lose their value. You also spend more to constantly advertise its sale. Overall, you can end up losing tens of thousands of dollars if you cannot sell your home. A proper agent speeds up the entire process, which is going to definitely make you more money and save you more time.
3 Things to Look for in a Good Agent
Now that we've established that a good agent can actually help you save money when selling your home, let's speak more about how to find a good agent. Not all real estate agencies are the same. Some are going to take a higher commission, and some just aren't as effective. Here are a few things to look for in a good agent.
1: A Local Agent
You're likely going to do much better for saving money and selling your home quickly if you select an agent who knows the area better. Choosing locally means that the agent you go with already has a good idea about the local communities, the stats, and the comparable homes in the area. A local agent is able to get right in there and go to work for you.
2: A Good Rapport
People who are from the area and know a lot about it also tend to care about the area. They want to keep property values up. They want neighbourhoods to look beautiful. So, it ends up being a huge benefit for you if you can build a good rapport with a local agent. You'll be on the same page and will be able to get through the process easier.
3: A Good Reputation
You also want to make sure that the agency or agent you end up going with has a good reputation for actually selling quickly and selling for profit. There are some real estate agents out there who list the home and take credit (and a commission) when it sells, but don't really do anything special. You want to find an agent who actually works for you toward the goal.
At the end of the day, selling a home is technically something that you can do on your own. You do not need real estate agents to hold your hand and walk you through the process. However, if you want to get through the process quickly, sell your home in a timely manner, and actually make more of a profit from the sale, then it's a great idea to go with a qualified agent.