Real estate as a profession has been around for as long as the United States existed, and yet many people have little idea of how real estate agents actually work. This understanding is exasperated by the fact that no two real estate agents practice exactly the same way. Although the objective is the same, the methods used are usually quite different. Still, the basic process remains unchanged.
This is important because both buyers and sellers are often challenged by their life situation, or lack thereof, to the point of causing severe emotional and financial stress. Understanding the process can be of great help.
Buyers, for example, tend to think of real estate sellers as someone who wants to sell them a house, who will even try to convince a person to buy a particular property to earn another commission. While some new licenses may start out as a glorified used car dealer with this idea, they rarely last. More than 70% of new agents fail in the first year.
What really happens is that the real estate agent learns everything he can about a person’s needs and finances and searches the market for a home that meets those financial needs and limitations. This last problem is usually the most difficult. Buyers live to get the most homes at the lowest cost, and sellers live to sell at the highest price. Add in direct competition from other buyers and the outlook can be challenging at best.
This is where a good realtor is worth his weight in gold. Well, maybe not its weight in gold, although this may be true in some cases, but a considerable amount of money at a time when financial resources are often stretched to the limit.
Helping a buyer find the right home at the right price is the job, and real estate agents have been doing just that for as long as real estate agents exist. If they didn’t, they would have been extinct centuries ago, especially in today’s computer-driven markets.
Once the right house is found, the work is just beginning. The best prices and conditions must be negotiated. This is an art in itself and can save the home buyer a considerable fortune. This is where the network of real estate agents affiliated with the Multiple Listing Service (MLS) and the National Association of Realtors (NAR) comes into play.
Both the buyer and the seller are usually represented by separate agents, each of whom is legally bound to serve the needs of their clients and not others. Buyers and sellers do not interact directly. This unique factor facilitates successful deals more than any other means, as real estate agents, as seasoned negotiators, can put together deals that people generally cannot, as evidenced by the staggering rate of negotiation failure experienced by FSBOs. sale by owner sellers working without representation).
Once a deal is reached, the next challenge is getting to the closing table through financing, home inspections, attorney and title issues, and even time. The previous owner must leave at the same time that the new owners are ready to move in. It is usually the same day, the closing day. Here too the experience pays off, as sellers who do make a deal experience major failed issues and failed closings that force them to start over with all the associated costs and lost opportunity.
Real estate agents facilitate successful transactions not by pushing their own agenda, but by accelerating the needs and goals of their clients.
He is not just trying to sell Someone a self-defeating home in a world of cautious buyers undermines an experienced agent’s foundation for continued success in the profession: repeat customers.
Sellers often work with misconceptions about the process of selling their property. If they gave it any consideration, they might think that what doesn’t really happen to buyers actually does. No successful agent goes out and tries to convince someone to buy a home.
What really happens is very similar to marketing any product or merchandise. Simply put, the real estate agent promotes the listing to the buying public in the best possible way. This process is also greatly facilitated by MLS associations as repositories of homes for sale. The MLS is the best source for home sales in the country, where more than 90% of buyers find their home through agents affiliated with a regional MLS. The objective is that no one interested in buying a home is left without knowing the seller’s offer. And that the best possible light means that the place must look good and the price must be competitive with other similar houses since buyers will always choose the best house at the best price.
This can be challenging for both sellers and buyers. Again, the seller seeks to maximize his investment, which generally does not include fixing the place. If they wanted to make improvements or repairs, they would not be selling in the first place and for the price they are getting, the buyer should be willing to accept less than picture perfect – at least that is often the common thought. This is as reasonable as the buyer being put off by houses that need work and are, in their opinion, too expensive, but it does not lead to anyone getting what they want and need.
The result is a conflict, almost always. Solving these innate problems is what a real estate agent does best: Finding the right home for buyers based on their needs, not yours. Or market the seller’s home effectively to bring in a ready, willing, and capable buyer. Then make it work for both parties to the closing table and a great new home for the buyer and a great check for the seller to improve your bottom line and your living situation. Not bad, not bad at all.