Should I use a Realtor when Buying and Selling Homes?

Posted by Ryan Fitzgerald on Monday, March 21st, 2016 at 7:13am.

Should I use a Realtor when Buying and Selling Homes?

Should you use a Real Estate Agent When Buying and Selling Homes?

Using a Realtor when buying and selling homes is an investment. You're going to pay them a commission, and statistics show you are going to see a GREAT return on your investment. It's also a great way to avoid being sued.

Some people don't want to use a Realtor when buying and selling homes, and this is because they want to try and save on the commission normally paid to an Agent. This is easy to understand. Ask the Founder of ForSaleByOwner.com how trying to sell his home without a Realtor worked out for him. He tried to sell his New York City Condo for 6 months before asking the help of a Real Estate Agent... who sold it in a few weeks for $150,000 MORE.

Craig Newmark the founder of Craigslist, as well as, Al Bennati, owner of buyowner.com both use agents to buy and sell homes. Keep in mind these are great business people with access to the best resources for selling homes without a Realtor, and they still use an Agent. This is because Real Estate Agents save you money.

If you're buying a home than you're NOT paying an Agent's commission, the seller is. Why wouldn't you want an expert on your team for free?

Why you should use a Realtor when Buying or Selling a Home Infographic

Should I Use a Realtor to buy a new home?A few of the common questions that will be answered within this article include:

  • Why Should I use a Realtor?
  • Should I use a Realtor to build a house?
  • Should I use a Real Estate Agent when buying a home?
  • Should I use a Realtor to sell my house?
  • Should I use a Realtor for new construction?
  • What are the benefits of using a Realtor to sell your home?
  • How do I Find a Real Estate Agent?

What Role does a Realtor Play when Buying and Selling Homes?

Using a Realtor to list your home for sale

If you spent the day in the life of a Real Estate Agent you'd have a better understanding of just how vital the role they plan in a real estate transaction is. Since you probably don't have time to spend a day in the life of a Real Estate Agent, here is a quick guide to how Realtor's earn their commission.

A Realtor is your team's Quarterback. They are responsible for knowing the 'plays' and where everyone is on the field. From home inspectors, to lenders, attorneys, title companies, etc. your Realtor will be the one driving the transaction forward and relaying information to all necessary parties throughout.

Realtors are useful because they give expert guidance

Expert Real Estate Guidance

Whether you're buying or selling a home, having a top local Real Estate Agent assist you with the transaction is going to be one of the best decisions you make. If you're buying a home, they will guide you through every step and if you're selling your house, they will implement the best marketing strategies so that your home sells fast and for the most money.

Realtors pay large fees to gain access to proprietary data. This data is crucial in making educated real estate decisions. Agent's will share this information with clients and this puts you in a great position to make educated decisions when it comes to making an offer on a house or determining list price. Zillow does not have access to this data so when you are looking to find the value of what your house is worth stay away from Zillow's Home Value Estimator (Zestimate).

Realtors are Trained Professionals in Real Estate Negotiations

To go back to the Quarterback analogy, your Real Estate Agent knows what to expect BEFORE it happens in the same way a Quarterback reads the defense before they snap the ball. This allows clients and Realtors to strategize before calling the next play during negotiations, which could mean thousands of dollars in savings for you!

Negotiations Make Realtors Crucial

Negotiations with a Real Estate AgentBy way of nature, humans are emotional creatures and more often than not we are driven to make decisions based on our emotions. Especially when it's something we are emotionally invested in and care a lot about. Negotiating is a game of give and take and it's easy to become upset during this stage - when you're working with a Realtor you have a buffer, and they understand the goal of negotiations is to see if there is a win-win scenario for both buyer and seller.

It's crazy how many people try to buy and sell real estate without a Realtor. All goes well until the slightest, tiniest little thing goes wrong (and there are always problems in a real estate transaction) and then the negotiations blow up. Anyone who has had a successful real estate transaction better have made sure they did everything correctly, or they could end up in court

Agents are able to keep emotion out of the negotiations which is critical when buying and selling homes and other than expertise, this is the best reason to use an Agent. When you're selling a home, or buying one, you're going to need to brace yourself for an emotional roller coaster ride. Your Agent is going to be your rock.Selling without a Realtor makes you less money!

Net 25% more Money using a Realtor

Here are statistics direct from the NAR that reflect working without a Realtor:

FSBO statistics, working without a Realtor - Real Estate Agents net you 25% more on the sale of your home

These statistics an average sale price of $46,000 more when you use a Realtor to sell your home. Yes, you'll be paying a typical commission of 6% to both the Listing Agent and Buyer's Agent, just as you would with any investment you're going to see a 25% higher return based on statistical averages. That is an incredible return when you consider the statistical averages you would see in the stock market or anywhere else. So if your goal is to save money, it's easy to recognize that you will save yourself more money by working with a Realtor .

Real Estate Paperwork  - Do you understand it all?

Aside from netting more money on the sale of your home, you're a lot less likely to fail working with a Realtor than without one.

90% of For Sale By Owner's Fail

90 percent of for sale by owner will failIt's not as easy to sell your home for sale by owner as it was in the days before the internet. Before the internet selling your home for sale by owner was easier because shopping homes for sale was not convenient for buyers. Today, people can search homes for sale with ease. In a few seconds you can view every home for sale in Raleigh, giving buyers many more homes to choose from, from the convenience of their living room, or anywhere in the world thanks to their mobile device.

If your home isn't being seen it may as well not be for sale. Without a Realtor your house is not being listed on the MLS and it is not being syndicated to tens of thousands of real estate websites around the world.

Additionally you're far more likely to end up in court or worse when selling a home by yourself.

To summarize selling a home for sale by owner, you have a 10% chance of actually selling and if you do... you are going to net 25% less on average, you will not reach the maximum number of buyers, you're going to spend your own money on marketing materials, you're far more likely to end up in court. Oh, and the founders of three for sale by owner marketing companies all use a Realtor.

With so many mistakes made be sellers these days, you really want to work with a professional.

Trying to save a few thousand dollars isn't worth it.

88 percent of buyers are using a Realtor88% of Buyers use Realtors

Would you rather be be the first person or the last person to know about a home for sale in a highly sought after neighborhood?

When you're buying a house you're competing against other buyers. Chances are 9 out of every 10 buyers you're competing against is working with a Realtor who is (if their MLS allows) instantly notifying their clients the second a property comes on to the market. So not working with a Realtor will put you at a significant disadvantage when buying a house.

When it comes time to make an offer on this house, and there are three others next to yours all with Realtors, which offer do you think the sellers are likely to accept?

Deals are far more likely to go south when there is no buffer for both sides, so it makes sense the sellers would want to take the offer that is most likely to reach the finish line.

Your Emotional Rock

Use a Realtor as an emotional rock when buying or selling a house!Unless you're been in a real estate transaction before, you probably don't understand just how common it is to become overly emotional and make bad decisions based on your emotional state. This is one of the most common home buyer mistakes.

Too often a buyer misses on a house with multiple offers and settles for the next property they see, even if it isn't one they want! This is because they become emotional after missing on a house, and this causes the buyer 'pain.' Your body has a self defense mechanism to protect you from these types of feelings, and naturally, you want to feel better. So you draw the conclusion that buying anything will make you happier than being patient.

The same logic applies to the best stock traders in the world. They refuse to buy a stock based on emotion, and instead purchase based on intrinsic value, or a computer algorithm. Want to know who loses money in the stock market? The people who buy at the top, and sell at the bottom... this is because they allow their emotions to dictate their decision making.

The same logic applies to selling a home without a Realtor.

Understanding the Real Estate Process when buying or selling homesUnderstanding the Process

Chances are you are not buying and selling homes every day, or constantly surrounded by real estate lingo, questions and different scenarios. This is where your Realtor comes in.

If you're selling a house there are home improvements you can make to add value to your sale. Chances are you will have some competition and there are ways in which your property can stand out to be far better than the rest. Here in Raleigh, NC homes sell FAST when they are priced correctly. If your home stands out you will attract the maximum number of buyers to your property and if priced correctly, a very likely multiple offer situation

When buying a home there are certain things that need to happen in order for you to reach your goals. You're going to want to ensure you receive the best possible deal from your mortgage lender so make sure you talk to at least three, and let them all compete against one another. I've had clients go from a 4.0% interest rate to 3.5% simply because they let them compete vs. one another.

Keep You Protected

Real Estate Agents Keep You Protected!With hundreds of thousands of dollars at stake you're not going to want to make any mistakes when buying or selling real estate. Buying and Selling with a Realtor decreases the chances of any mistakes significantly, especially since there are so many checks and balances in place for Agents and firms. If there is even the slightest thing wrong with the paperwork the firm will request that it be fixed. This is going to protect you big time in your transaction.

Some do it yourself real estate people assume the attorney will take care of everything. For someone who doesn't live and breathe real estate this makes a lot of sense. However there have been a lot of instances where my firm says 'I can't believe the attorney didn't have this!' Whether it's missing signatures or forms, everyone makes mistakes.

Final Thoughts on Using a Realtor to Buy and Sell Homes:

Selling a home without a Realtor is a mistake!

Buying and Selling homes without a Realtor is a mistake.

If you're buying a house, you do not pay a Realtor's commission. So anyone buying new construction who is not using a Realtor is missing a great resource to help with their purchase. Do you know what to look for when buying new construction homes? Are you prepared for every step along the way when buying a house? How about what happens after a seller accepts your offer

Selling a home without a Realtor is one of the riskiest decisions a seller can make. To be blunt, it's a mistake. Not only are you risking making less money on the sale of your home, you're putting yourself in harms way as far as legality issues, and other problems you cannot anticipate. There is a reason the people with the best marketing resources for sale by owner are still selling with a Realtor and for more money! That's because Realtor's know the best strategies to get homes sold, FAST and for the most money!

If you have any questions drop us a line in the comments section below, we would love to hear from you!


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Ryan Fitzgerald Raleigh RealtyHi there! I'm Ryan Fitzgerald, a REALTOR in Raleigh-Durham, NC and the owner of Raleigh Realty. Chances are you and I share a similar passion, Real Estate! I also have a passion for technology, sports, and people. Would love to hear from you. Drop me a note in the comments section below and feel free to share this article socially!

 

27 Responses to "Should I use a Realtor when Buying and Selling Homes?"

Christine Worstall wrote: Wow

Posted on Monday, March 21st, 2016 at 10:19pm.

Virtual Tours wrote: I think that you should use a professional whenever possible, the real estate field makes no exception to that.

Posted on Thursday, March 24th, 2016 at 9:41am.

Eric Bowlin wrote: A person needs an agent because people are far too emotional about their house. It is really hard to have an "arms length transaction" when you are emotional invested into it. Here is an example:

I recently sent one of my team members to look at a property in a neighborhood. I own multiple other properties on the same street and was ready to make an offer. It's a rough neighborhood but I know the true value there and have been very successful in it.

The seller used an entry only listing and was showing it himself. My team member was 3 minutes late. When he got there the seller was already inside showing other people (it was a group showing) and he refused to even let my team member into the building. I called him and he got very emotional and upset and said he didn't have the time to waste on me and would easily sell the property to someone else that was there.

2 months later it still hasn't come under agreement. An agent would have been professional and understood that traffic happens. It's the agents JOB to sell that house and will take the extra minute to make sure everybody sees the property who is interested. There would have been an offer that day and the property would be sold.

Guess the guy should have had a Realtor. It cost him thousands of dollars.

Posted on Sunday, March 27th, 2016 at 11:36am.

Joe White wrote: Few home buyers, at least in my Philadelphia real estate market, know the difference between real estate agents, brokers and Realtors. They tend to focus on their real estate listings lists and don't vet their representative nearly enough. Buying a home in the number one investment most of us will make and its worth checking credentials. A Realtor is the minimum and a good start.

Posted on Wednesday, May 18th, 2016 at 8:24am.

Annie Frances wrote: The reason I want to use a real estate agent when I sell my house is because they know how to negotiate. I don't have an experience negotiating anything, let alone a house. However, an agent who has real estate knowledge can get the best deal and keep you protected. Great post, thanks!

Posted on Wednesday, July 6th, 2016 at 2:54pm.

Rita wrote: Pre-approved, things started out great I'm not sure what happened, realtor was also the broker, my frustration with the realtor was that oftentimes we were seeing his listings from his agency couple of homes I wanted to place an offer on he found reasons for me not to do so don't feel that he was up front about a lot of things. He tried to get me to purchase homes that I really wasn't interested in this was a vetted realtor who has seemingly lost the integrity of what a realtor is supposed to be. What tips can you give me to find a realtor with integrity and who truly has my best interest at heart? Eventually I released him as my real estate agent. (Northeast Ohio)

Posted on Monday, July 25th, 2016 at 4:38pm.

Megan Earl wrote: I've been wanting to move for a long time, and the other day, my mom asked me if I'm planning on using a realtor. I hadn't really considered it, but after reading this post, I want to! It totally makes sense that negotiations would be a nice time to have a realtor. I'm DEFINITELY not an expert on buying/selling homes, so I would really appreciate professional help.

Posted on Tuesday, August 9th, 2016 at 12:28pm.

Rockford Johnson wrote: Thank you for helping me understand the benefits of working with a professional realtor. I really like how you explained that "From home inspectors, to lenders, attorneys, title companies, etc. your Realtor will be the one driving the transaction forward and relaying information to all necessary parties throughout." I have never used the services of a realtor before but I can imagine how helpful one can be when it comes to buying/selling a home.

Posted on Wednesday, August 10th, 2016 at 2:43pm.

Marie Watson wrote: Thanks for explaining how working with a real estate agent can be a great investment. You make a good point about how they can help you during negotiations. I would think that it can be really beneficial to work with someone who knows the market and can help you get the best price for your home.

Posted on Wednesday, August 24th, 2016 at 10:25pm.

metrohomesadvantage wrote: <a href="http://metrohomesadvantage.com/">Buying and Selling homes</a>
A house is not a home because of its room dimensions or the color of the walls. It is about family, and the memories you will create there.This is about more than real estate.

Posted on Friday, September 2nd, 2016 at 7:33am.

Marie Watson wrote: Thanks for explaining why it is better to work with a realtor when you are buying or selling a home. You make a good point about how a real estate agent will be able to give you expert guidance. I also like that you mention how a realtor knows how to negotiate. I have been thinking about buying a home, so I will have to look for a reputable agent to help me.

Posted on Thursday, September 22nd, 2016 at 4:43pm.

Kate Hansen wrote: The analogy you make about your realtor being your teams quarterback is so true! I like that they know the whole process of buying or selling a home and can help the whole family find something that works for them. I need to do some research and find the best realtor for when I sell my house next year!

Posted on Thursday, September 29th, 2016 at 3:43pm.

siaosi wrote: I would like to get a real estate agent after reading this. I would like to have them do all the dirty work. I would like to get their expert opinions as well.

Posted on Thursday, October 6th, 2016 at 11:16am.

Erika wrote: I am wanting to move into a new area and have been contemplating getting a realtor. I like the analogy you used of a realtor being like the teams quarterback. I sometimes get in a mood where I think I can do everything myself, but then I remember if I just hired a realtor, it could take a large weight off my shoulders as they help me. I will look into hiring one so I can hopefully have a smoother process buying a home.

Posted on Friday, October 7th, 2016 at 10:41am.

Rockford Johnson wrote: We are in the process of looking for a new home right now. It was interesting to learn that a realtor can have access to proprietary data that can help with real estate decisions. I hope this article can help us to know what house is best to buy.

Posted on Wednesday, November 9th, 2016 at 12:48pm.

gina henrie wrote: My husband and I are going to be moving next year, and so we have been thinking about possibly getting a realtor. I did not know that 9 out of 10 buyers you're competing against is working with a realtor. That is a good incentive to have one. It seems like the person selling the house would most likely go with the buyers that has a realtor, because they will be faster and more up-to-date.

Posted on Tuesday, November 29th, 2016 at 9:45am.

Jade Brunet wrote: I was looking to know more about the benefits of using a realtor. It is interesting to learn that it is not easy to sell a home by owner. It would be beneficial to have an experienced home seller to work with in this process. Finding someone local would be best because they would be familiar with the area in which they are working.

Posted on Tuesday, November 29th, 2016 at 4:05pm.

Jade Brunet wrote: I appreciate this information about whether one should use a realtor when buying a house. It is good to know that these experienced agents can serve as a person's emotional rock. It would be beneficial to have a realtor to make important decisions while you are at an emotionally fragile state. Something to consider would be to hire a local real estate agent to make meetings more convenient.

Posted on Thursday, December 8th, 2016 at 4:37pm.

Elsa Anderson wrote: I like how you point out that a realtor is your team's quarterback and is responsible for knowing the plays and where everyone is on the field. When I tried by myself to sell the house I lived in a few years ago, it took me months to finally sell it. This time around, I would like the help of an expert who knows all the inexpensive tricks to help sell my house much quicker.

Posted on Friday, December 9th, 2016 at 3:55pm.

Jalu Sakti wrote: You made such a great point talking about how a realtor is your emotional rock! I haven't ever bought a house, before, so I didn't know that it could be such an emotional process. I think one way they can help you by being stable is to remind you of what you wanted in the beginning of the process and make sure you really want to vary from that. I'll make sure we have a lawyer that is prepared to help us in this aspect for when we start looking for a home.

Posted on Monday, December 19th, 2016 at 2:34pm.

Jade Brunet wrote: I am happy to have found this information about whether or not one should use a realtor when buying and selling homes. It is good to learn that these specialists have good negotiation skills. This would be helpful in saving you time and money. Something to consider would be to find someone local who is familiar and comfortable with working in the area in which you live.

Posted on Tuesday, December 20th, 2016 at 1:27pm.

Jade Brunet wrote: Thank you for this information about the benefits of working with a realtor. I am happy to know that these people can serve as an emotional rock during the home selling process. It would be nice to have someone who is experienced to support you during the emotional times. Something to consider would be to seek references to find a realtor who can meet your specific needs.

Posted on Tuesday, December 20th, 2016 at 4:26pm.

Jade Brunet wrote: Thank you for this information about the importance of using a realtor. It is good to know that these specialists have great negotiation skills. This would be helpful in saving you money. Something to consider would be to find a local real estate agent who is familiar with the area in which they will be working.

Posted on Thursday, December 22nd, 2016 at 1:21pm.

Max Jones wrote: I hadn't ever thought about the deficit you put yourself at if you decide not to use a realtor. I really like the thought of wanting to be one of the first to know about a home rather than one of the last. We're getting ready to get our first home, and I think we're going to be a lot better off getting a realtor.

Posted on Tuesday, April 4th, 2017 at 2:50pm.

Zequek Estrada wrote: I loved how this compared a real estate agent to a quarterback. Another way that I've heard a realtor talked about was that they're basically like family. For the part, I feel like the main message that I've come across is that it's important for you to take the time to find an agent you can trust.

Posted on Monday, May 8th, 2017 at 10:51am.

Braden Bills wrote: I want to make sure that I get my home sold. Getting a realtor seems like a pretty good idea to me! I can see why it would be an investment, but I think it's a good one. I'll see if I can find a real estate agent near me that can help me with this.

Posted on Monday, May 22nd, 2017 at 10:19am.

kyle wrote: Reading this article has taught me lot about realtors. The info graphic taught me that a realtor can offer expert guidance and negotiate well. I hope this article can help us to avoid selling our home undervalue in the future.

Posted on Wednesday, May 31st, 2017 at 3:42pm.

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