Is a real estate agent necessary, anyway?

In today’s culture where buyers and sellers have a wealth of information available to them on the internet, we frequently receive questions such as,  “Is a real estate agent necessary…can’t I sell my home on my own?,”  “What do agents do anyway?,” and “Why should I pay an agent when I am able to find the home that I want on Zillow/Trulia/etc?”

Below are a few reasons that using an agent, even in a hot market, is vital to your transaction:

1. Listing a home with an agent produces a higher contract price: Why? Exposure. According to the National Association of Realtors, last year 9% of home sales were sold by owners, but the average home sold by owner sold for  $184,000 compared to $230,000 for agent-assisted home sales.

2. You have an unemotional advocate negotiating on your behalf. Buying and selling a home is a emotional process. Having a middle-man advocating for you takes the emotion out of the process and ensures you get the best price with the most valuable terms for your home.

3. Agents ensure deals go smoothly. After an offer is accepted there is a lot of leg work that must be done under specific time constraints to get to the closing table on time. A few of these tasks include:continuously communicating and problem solving with lenders, agents, and other involved parties; coordinating appointments with appraisers and inspectors; providing recommendations for vendors; and reviewing and advising clients on things such as inspection reports, title commitment paperwork, and settlement statements.

4. Agents advise you. Lastly, real estate professionals are experts in their field– just as you are in yours.  Buying and selling a home is a legal transaction where a very large asset is changing hands. Good agents are able to explain the legal forms you are signing (although legal advice is always advisable here), provide statistics on the market, advise you on home values, and recommend tips for your specific transaction based on local market trends.

As with anything, you get what you pay for and paying for a good agent (or not…if you are a buyer as the agent’s commission will be paid for by the seller/listing agent) is worth it!