Find Laws Find Lawyers Free Legal Forms USA State Laws
Home » Find Laws » Real Estate Laws » Buying Real Estate » Being Smart and Hiring an Agent

Being Smart and Hiring an Agent

Hiring An Agent

The hiring of a real estate agent or realtor is an important step in the process of selling or purchasing property. The realtor works as the buyer/seller’s representative, and the representative of their property, and it is the realtor’s job to see that the individual gets either the best return or the best value for their sale or investment.

The realtor essentially works as a coordinator for all the multiple tasks involved in real estate transactions, and basically holds the hand of the customer as they make the transaction. An important consideration any buyer/seller must keep in mind when selecting an agent is that, while their realtor is given a great deal of responsibility, they ultimately risk very little besides their time, effort, or, to often a very limited degree, reputation. The risk of return is on the customer, thus, it is important that the customer selects a realtor that will be most effective for the needs of their transaction, and be most in tune to what the customer wants.

Primarily, it is important to understand what a real estate agent will do for the customer in most general circumstances. In terms of selling a property, the realtor’s primary purpose is to advertise the property, which they do through both traditional listing services, but also now, in modern ages, through the Internet.

They work in conjunction with the seller in order to provide the best representation of the home, both in written literature and advertising, but also for presentation purposes. The realtor will likely run open houses to show the property to as many individuals at a time as possible, and will work as the point person for the property. Nearly always, the realtor will place a sign outside the property advertising its sale price and providing the realtor’s contact information.

Advertising a property usually represents the realtor’s largest expenditure of resources, and in making this risk, they are entitled to exclusivity in brokering the eventual sale of the property. Thus, a contract is usually drawn up between the realtor and the seller to insure the exclusivity. These contracts can always later be dissolved with relative ease if the relationship is not beneficial to either party. However, in real estate sales, lost time is often lost money in terms of property cost and devaluation in market worth, such as which occurs the longer a property is on the market.

It is the realtor’s responsibility to also negotiate on behalf of the seller, and perform background checks on potential buyers, though they are entitled to obtain final approval on the sale from the seller. The realtor also ensures that all aspects of the closing of the sale proceed properly, even though they, themselves, do not perform the legal transfer of property (which is usually done by attorneys). The realtor traditionally receives a commission of the sale and of the purchase of a new property, usually five percent, but that is often open to negotiation. In terms of purchasing a property, the realtor will guide the seller in finding an appropriate property, and is tasked with, again, negotiating the final price on behalf of the client.

As can be seen, a realtor is a demanding and important job in real estate transaction, and, thus, it is important to find the right one. As mentioned, most real estate transactions yield the best results for all when they are completed with haste, so time is important, but so is caution. Often approaching numerous Realtors is advised, and sorting out which is the best for the customer is important. While one certainly does not want to pay an exorbitant commission, it is important to note that that a fair commission is important, because that will ultimately be the realtor’s source of revenue. The better the deal they hope to make, the better they will work on the behalf of the customer and their property.

Overseeing and maintaining communication with the realtor is vitally important, especially when in the stages of purchasing a property. One of the major criticisms of the realty system is the lack of oversight possible in negotiating by a realtor on purchasing a property. Since a realtor makes a commission off of a purchase, the incentive is there to often not negotiate for the best price on behalf of their client. Therefore, trust and dependability is an important part of the relationship, especially in the later stages of the relationship.

In the modern Internet era, it really has never been easier to research a realtor or the services their offices provide. Almost all Realtors are online, and therefore, one has ready access to determine the effectiveness of their salesmanship and the proliferation of their advertising.


However, traditional means, such as success, word of mouth, and initial impressions are important as well. Anything that helps a customer feel comfortable in their decision is crucial, because in selling or buying a property, having the right realtor is perhaps the biggest and most important step one can take.

NEXT: How to Make Real Estate an Investment Opportunity

Related Articles

Link To This Page

Comments

Find an NJ Lawyer
Guide to Finding a Lawyer
Tips