Author: Matthew Carpenter

My husband and I recently signed a contract on a new construction home. While it’s been exciting getting to this point (and will be even more exciting once permits are in and the actual building can commence), it’s also been quite the learning experience.

Buying new construction is a different process than buying your typical pre-built home. What’s included, what’s not, and what’s hidden in that massive contract depends on the builder that you use. As with any situation where you’re moving or about to spend a lot of hard earned money, it’s important to go in prepared – and that means asking the right questions.

The first interaction you’ll have with the builder – and in fact, the first several, at least – will be with the builder’s sales representative. These early meetings are your chance to ask all of the questions you might have regarding costs, labor, and other essentials that you need to know about before jumping in. Write your questions down before you go in so that you can be sure not to forget anything important, and don’t be shy about getting the answers that you need. This is a major purchase, and you don’t want any surprises later.

Not sure exactly what you need to be asking about? These 10 questions to ask when buying a new construction home will help get you started.

1. Is the lot cost included?When you’re exploring new construction options, you’ll see that each plan comes with a base cost. This is the cost of the structure itself, as well as base interior and exterior features (we’ll get into those in a little bit). What may not be included is the cost of the land, so be sure to ask if the lot cost is figured into the base.If the lot cost is included, ask if there are premium costs for certain lots. It’s possible that the base cost does include the lot, but the remaining lots in the development all have added costs for certain features that you can’t opt out of, such as look-out windows in the basement or wider yards. If the lot cost is not included, ask what it is (and whether there are additional premium costs) and factor those into the base price for the house.
2. How long will building take?It’s important to know what you’re getting into timing-wise with a new construction build, particularly if you have a house to sell first or you’re going to be renting. While the building process is prone to delays and you won’t be able to get a finite schedule for how long the build will take, you’ll be able to get a general idea of what you can expect. Be sure to also ask if the build time includes the time it takes to get the permits, since those will typically take about 30-45 days to obtain.
3. What warranties are provided with the house?Just because a home is brand new doesn’t mean that no problems will arise. Fortunately, most new construction homes come with one or more warranties that protect you in the event of a mishap early on, including a short term whole-house warranty and a longer structural warranty. Ask what the warranties include and how long they last. While you can always buy your own home warranty, you should expect that the builder will cover you in some way for at least the first several years.
4. What are the standard finishes?Does a base cost look too good to be true? That might be because the builder is expecting you to spend big when it comes to finishes like flooring and countertops. Ask what types of finishes are included, and better yet, go through the model unit with the sales representative and have them point out what’s standard and what is an upgrade. You likely won’t meet with the design center until after you’ve gone under contract, so it’s important to figure out early what sorts of finishes and appliances you can expect to be included in the home’s base price.
5. Are you allowed to purchase your own appliances or materials?Had your heart set on butcher block countertops but the builder doesn’t offer them? It’s possible that you may be able to purchase them yourself and then have the builder install them. Alternately, some builders won’t let you purchase your own materials, but they will let you bring in your own appliances, even on items that are included in the sale, like sinks and toilets. Keep in mind that, in terms of appliances, you probably will have to make some purchases on your own, such as washers, dryers, and refrigerators.
6. If you can bring in your own materials or appliances, will you get credits?Let’s say the base price of your new construction home includes a kitchen sink worth $200, but you’d like to upgrade and purchase a sink on your own that costs $400. Will you get $200 off the purchase price for not using the sink that’s included in the base? Some builders offer credits for any upgrades or self-purchased materials or appliances, while with others you’ll just have to eat the cost of the originally included item. Credits are a nice touch, but they’re not usually standard, so it’s best not to go in expecting that you’ll get money off the base cost for purchases like these. In general, builders don’t like to lower the base cost, but if they do offer credits, that’s a win for you.
7. Is landscaping included?Depending on the size of your yard, landscaping, including sodding and putting in trees and plants, can set you back several thousand dollars or more. Is that a cost you’ll have to factor in on top of the home purchase? Some builders include your basic yard work, while others leave you with unfinished land that becomes your responsibility to landscape (and generally must be completed in a set amount of time, per the contract). Ask whether landscaping is included, and if so, what that entails and if there is any sort of warranty on the materials so that if your newly sodded grass dies right away or some other mishap occurs you’re not responsible for fixing it.
8. Does the contract include a cost escalation clause?New builds are notorious for last minute surprises, but you don’t want to be on the hook financially if it happens. A cost escalation clause allows the builder to charge you for any unanticipated costs that arise as a result of necessary labor or materials. So if lumber prices go up before the builder has purchased the materials for your flooring, or an unexpected delay adds a few weeks onto the build, you’re on the line for those costs. If you’d rather not deal with the stress of unanticipated costs, find a builder that doesn’t include a cost escalation clause in the contract.
9. Are there any homeowners rules or regulations?Even if there is no homeowners association for the development, the builder may still set some guidelines as far as what’s allowed and what’s not on your property. For example, you may not be able to use a particular type of fencing or install a shed in your backyard. It’s better to ask this question early and know what to expect than to move in and find out that you can’t bring into fruition certain plans you had for the space.
10. Are there any financial incentives for using the builder’s preferred lender?Some builders offer discounts on closing costs if you obtain your mortgage through a company that they have a relationship with. Ask if these sorts of financial incentives are offered, but don’t make your final decision about where to get your mortgage based on the discounts alone – you may still be able to find a better deal through other lenders. It’s still good to know however if there are benefits to working with the builder’s preferred mortgage company.

If it’s your dream to build a new construction house, go in to the process with an open mind and a clear idea of what you can expect. The more questions you can ask in the beginning, the less surprises you’ll potentially face in the future.

And as with any home purchase, be sure to have an attorney read over your contract so that you can be sure everything is fair and equitable. Some buyers of new construction prefer to go in to sales meetings with a real estate agent as well, though in my own experience, I didn’t find that to be necessary. Be smart, ask the right questions, and at the end of the day (or fine, year) you’ll end up with a beautiful home built just for you.

Buying a house is probably the single most expensive and smartest investment you can make. But as you may well be aware, it can also be scary. “Caveat emptor,” or the age-old principle of “buyer beware,” puts the responsibility on the buyer to know the quality and the risks that may be associated with a product before purchasing it.

To avoid regrets and maximize the enjoyment you get out of your purchase, here are four questions you should definitely ask the seller before buying that house:

1. How much did you pay for the house?One of the first things you should know right away is the past and present value of the house for sale. Thus, you need to know how much the previous owners paid for the house compared to their current asking price. It’s also important to know how long the house has been on the market. These pieces of information can give you leverage for negotiation. You should also find out how the seller arrived at the current property price and do your due diligence to see if their numbers match the property’s fair market value.
2. What is the house’s overall condition?No matter how beautiful and spotless a house appears to be, potential buyers should never fail to inquire about the foundation and maintenance of the house.Key questions should include the following:
   • What was the routine maintenance of the home?When was the roof or the house’s ventilation system last cleaned or repaired?Has the home undergone major renovations?How old are the appliances, if they’re part of the purchase?
   You should also take a keen interest on the structure itself – make sure that the plumbing is intact and that the electrical system meets safety standards. Negligence can send you into an excruciating money pit, not to mention put your personal safety at risk, so it’s important that you know every little detail about the house’s overall condition.
3. How is the neighborhood like?As a buyer, you want to make sure that your quality of life is maximized upon moving in. Even the most sophisticated of homes will induce buyer’s remorse if it’s located in a bad neighborhood.Any inquiries about the following should be fair game:
   • The community
   • The present crime rate
   • The police department
   • The school system if you are moving in with kids
   Buyers should know all kinds of nuisances and problems that occur or might occur in the neighborhood. Find out if a noisy neighborhood or transportation system may have something to do with a seller’s decision to put their house on the market. The same factors can affect not only your enjoyment of your purchase, but also the value of the property should you decide to sell it in the future.
4. What are the pros and cons of living in the house that I should know about? Asking this question presents a real opportunity for you to find out what the seller considers the property’s best features and what they think is its downside. From there, you can start to think about whether or not you want to proceed with the purchase.

Real estate transactions are full of assumptions. A lot of our clients have been scammed of their hard-earned money due to the fact that they do not ask the right questions before purchasing a property.

One of our clients came complaining to us about the house he purchased few years ago, only to discover the land on which the house was built on was in dispute and till today he’s still trying to get his money back. How Sad!!

Do you know you can avoid the issues that come with real estate if you can just ask the right questions and do a little research yourself?

Some of the questions to ask your realtor before buying a property include:

What Documents does the Property Have?

Some of the documents/title you see in real estate includes Certificate of Occupancy, Deed of Assignment, and Excision Title etc. You need to find out which title your property has before making a purchase

Do I Get an Inspection Done Before Signing the Contract Sale?

It is advisable to go and inspect a property before buying it just like you would do for a car. You can easily walk away from the deal if you find any problems with your property.

Are there any deed restrictions on the property?

Deed restriction is simply how you use or what you do on your property. These restrictions often go beyond the local zoning laws in controlling the use of your property. For example, you might want to put a kiosk in front of your property or you may want to convert your living room upstairs to a bedroom, you need to be sure what you want is allowed as this may affect your decision to buy the property.

Are they any Hidden Charges?

Usually in real estate, asides the normal cost of the property, there are other charges like VAT, Legal fees and Utility bills.

I have seen cases where a client has refused to pay utility fees with the excuse that the realtor didn’t let him know it was included in the transaction. Such a scenario can be avoided if only you ask

What is the Mode of Payment?

Payment plans differ so you need to find out the payment plan that tailors to your need.

During our lives we buy and sell a lot of things, but there are very few things we buy and sell that are worth more than a property.

Whether you are selling your lifetime home or an investment property, finding and choosing a real estate agent is a big decision.

As a property stylist and property developer, I often have clients seeking my opinion as to who I recommend they work with. As a result, part of my role has become working with clients on their selection process and helping them to make an informed decision.

Here are 6 tips to help choose the right agent for you.

1. Research

Research potential agents just like you would similar properties and your potential buyers. There are many different real estate agencies to choose from. Look at a few to get an insight into how they work.

2. Look local

The agent you choose is going to represent you and your property. It’s important that the agent  you choose knows the area you’re selling in, and knows the other properties for sale, and that have sold recently.

Other properties in the area could be competition to your sale, and it’s good to know what you’re up against.

An agent who knows the local scene can assess your home as it sits in the market, alongside similar properties.

3. Get out & about

One of the best ways to research your shortlisted agents is at open house inspections, so why not pop into one and see your agent in action.

You don’t have to choose open homes of properties that are similar to yours, just use the opportunity to see how your agent presents an open house and deals with potential buyers. It can also be a good time to say hello and get some contact details.

At the inspection watch and interact with the agent, taking note of the following things:

• The way the agent communicates and interacts with potential buyers. Is their communication style one that you’re comfortable with?
• Their behavior at the open house inspection. Did they stand at the door and welcome everyone? Did they proactively identify the features of the property for sale? Were they able to answer all your questions about the property?

• Did they follow up with you after your attendance at the open house inspection to see if you wanted more information about the property?  Is this something you want your agent to do?
• Were they on time to the open home and other appointments?
• What do you think of the marketing/advertising for the properties the agent has listed?

4. Comfort matters

Do you feel comfortable with the agent? You need to be very honest with an agent during the selling process and hence you need to make sure you are comfortable with the agent and can have open and honest communications.

5. Check the results

Look at the agent’s results, making sure you look at properties the agent has sold recently. Ask for the hard facts, sale prices, time on market etc.

Take a look at what’s sold in your area in the past six months and who’s been managing the property.

6. Market knowledge

The agent should be able to give you a thorough snapshot of the market in your area and surrounding areas. They should know about schools, transport, demographics and the sorts of buyers looking for homes in the area.

These are just a few of the top tips and the initial things you need to consider when selecting an agent – so happy selling and buying.

As a new real estate licensee, the first step you’ll need to do is choose a real estate broker. The process of picking a broker can start early, as some states require that you be sponsored by a broker when you take your real estate exam. Don’t let the process of finding a real estate broker to work for intimidate you. We’ve put together some information to help you learn how to choose a real estate broker that’s right for you.

How do you select the best brokerage for your new career? Review the following five steps to learn how to choose a real estate broker.

Step 1: Ask about the commission split

Most real estate agents get paid on commission. When you’re not selling, you’re not getting paid. But when you’re selling, you’re going to split the proceeds with your broker. Brokers offer different commission structures. (And some brokers offer salaried positions, but these are few and far between.) While factors like company culture, resources, market share, reputation, and support will also come into play, you’ll want to pick a brokerage that offers you a commission split you can live with—keeping in mind that commission splits often get better with experience and sales volume.

Here’s how commission splits work: Let’s say you sell a $300,000 home and the average commission in your area is 6%. That 6% is first split between the buying and selling agent. Now you’re down to 3%, which works out to be $9,000. Next, you’re going to have to share that with your broker. If you’re on a 60/40 commission split, you’re taking home 60% of that $9,000, or $5,400. Of course, this is before expenses and taxes.

What’s a good commission split? That depends on the business, your market, the broker’s support and resources, and a number of other factors. Just make sure you understand the split and how you might get a bigger percentage over time.

Keep in mind that some brokerages these days are offering real estate agents a salary and benefits, or a hybrid model, so you might want to shop around if this approach to compensation appeals to you.

Step 2: Evaluate the brokerage culture

Before you choose a real estate broker, ask yourself: What kind of company do I want to work for? How much support do I want from my coworkers? Just like other businesses, real estate brokerages develop a company culture that informs the way they do business. Are you looking for a small, mom-and-pop brokerage with an intimate, family-like brokerage culture? Or would you prefer a big-box franchise brokerage that’s more likely to let you fend for yourself? Are you looking for weekly get-togethers and company caravans on open house day? The best ways to know and understand a company’s culture are to chat with agents who work there or attend a company function.

Step 3: Decide between a franchise or independent brokerage

When it’s time to choose a real estate broker, another big question to consider is whether you prefer to work for a franchise or independent brokerage. Big-name brokerage houses like RE/MAX or Keller Williams have offices all over the country. A mom-and-pop brokerage might have been serving a single community for generations. Franchises tend to exert more control over their agents than an independent firm, but they usually offer more support and training. Independent firms are usually locally based and consist of a small- to mid-size team. The benefit of working for an independent broker is that you have more freedom to conduct your business the way you want to.

The National Association of REALTORS® reports that the majority of REALTORS® (53%) choose to work for independent firms. If you relish your independence and dislike corporate culture, an independent brokerage may be the way to go. The main advantages of a franchise are the many resources they offer in terms of information and marketing support—and the name recognition.

Step 4: Learn its reputation and niche

When you start your research, begin with a simple Google search as if you were a buyer. Search for “homes for sale in [community name]” and see who comes up. You want the brokerage you select to have a strong market presence and a quality reputation. If they have a high market share, you can depend on them to help you find leads. And we all know how important a brokerage’s reputation is.

Just as important is the niche your brokerage is in. Studies show that the right brokerage can triple your income. The right niche for you will probably be a combination of your interests, lifestyle and the opportunities available in your area.

Step 5: Make sure it will offer support

Some brokerages are very hands-on and offer extensive mentoring, free training, and marketing collateral. Other brokerages are just places to hang your hat while you get to work growing your own business. You might take the occasional sales training class or meet for a monthly brokerage meeting, but otherwise, you’re on your own. You’ll find many variations between the two extremes, and it’s largely a matter of finding the corporate culture that you prefer.

When you’re ready to choose a real estate broker, keep these considerations in mind. Finding the right brokerage involves research and interviewing. Don’t be afraid to sit down with several real estate brokerages in your area to see who fits the best with your learning style and business goals.

Why it’s necessary to choose a real estate broker

Why is broker selection so important? In your first year as a real estate agent, you’ll have a ton of questions, uncertainties, and getting-your-feet-wet experiences. You’ll need to choose a real estate broker that will be there with you each step of the way.

When you’re first starting out, you won’t have the funds to compete with the big real estate brokerages when it comes to marketing, lead generation, and conversion. You’ll need a broker’s help getting your name out there, and you’ll want to use the broker’s tools and systems to kick start your career.

Buyers and sellers are on separate sides of the fence when it comes to home sales. What one is trying to achieve is often diametrically opposed to what the other wants to see happen—the first usually want to steal the property while the other wants top dollar. And yet, they share the same ultimate goal. They want a sale.

Both sides can benefit significantly from hiring a real estate agent to assist them, but their reasons can be different.

It’s All About the Money…

 Consider this if you’re contemplating going “FSBO”—for sale by owner—when listing your home. Of course, you want to get as much for their home as possible, and you might think that means not parting with extra commissions. But a 2017 study indicated that FSBOs fetched about 30% less for their owners than agent-listed properties. 

And you’re probably going to have to pay a commission anyway if your buyer is represented by an agent. The buyer’s agent’s commission is typically factored into the deal—although you’ll still save on the commission you would otherwise have paid your own agent.  

And why not use an agent if you’re the buyer? After all, the seller is paying the commission, not you. Of course, there’s always a slim possibility that the seller will refuse to do so, but you can probably move on and look at other properties if it appears that this will be the case, although it can depend on whether you’re shopping in a buyers’ or sellers’ market and who has the upper hand. 

…And Attention to Detail

You might be far out of your element when it comes to reviewing and understanding the multiple documents involved in a real estate deal, and you should have a thorough understanding of what you’re getting into regardless of whether you’re buying or selling. Purchase agreements alone can top 10 pages, not to mention federal, state, and local document requirements. 

Luckily, your agent will be far more familiar with all this paperwork than you are. Consider this if you’re still thinking about saving money: Some mistakes or omissions in these documents can cost you as much as that commission you were trying to avoid paying—or even far more. 

Here’s an example: Maybe a buyer makes an offer on a home, but it’s contingent on getting a mortgage. There’s no possibility that the buyer could purchase the property without first securing financing—but there’s no such contingency or escape hatch built into the purchase agreement to let the buyer out of the deal if financing fails. The buyer is obligated to go through with the sale or be sued if it turns out that a mortgage isn’t happening. 

Consider hiring a broker for a smaller one-time fee to simply review your contracts before signing if you’re still dead set against hiring an agent to take care of all this. 

Privacy, Confidentiality and Fiduciary Duty

Your real estate agent has your back whether you’re a buyer or a seller. Agents have what’s known as a “fiduciary” responsibility to their clients. They are legally obligated to put their clients’ best interests first. 

This duty imparts a very high standard for confidentiality. As a buyer, do you really, really want to turn over your most intimate financial details to a FSBO seller who’s under no legal obligation to keep the information confidential? The same goes for turning any and all information over to the seller’s agent, who has no fiduciary responsibility to you but only to the seller. Your own agent would know whether any information the other agent is requesting from you is reasonable. 

You do have recourse if you’re the buyer and the seller’s agent has lied to you, misled you, or disclosed confidential information. You can report it to the agent’s professional association, such as the National Association of Realtors. But again, this assumes that the seller has an agent. You’ll have far fewer options if the property is FSBO. 

Agents Know What to Look For

Buyers usually have a pretty firm idea in mind of what they want in a property, from number of bedrooms to an attached garage to any number of other must-have and must-not-have factors. You’ll probably feel pretty comfortable looking at homes with that list tucked firmly in the back of your mind.

But your agent will be alert for issues that might not cross your mind, such as furnace issues, leaks, roofing problems, and mold and insect issues. An agent will recognize the telltale signs of these problems and know how best to approach them. Again, this experience and knowledge can end up saving you thousands down the road. 

You know exactly how much you want for your home if you’re the seller, but is the price you’ve arrived at reasonable? You might only know for sure if you’re able to identify comparable sales that confirm that you’re in the right range—or not. Agents can do comparative market analyses in their sleep. 

An agent can hand over researched, current, and reputable data regarding a neighborhood’s demographics, crime rates, schools, and other important factors. That’s a lot of time-consuming research to do on your own, particularly if you don’t know where to start. 

Agents Have Superior Negotiating Skills

You might not be a negotiation shark if you don’t happen to be an attorney, mediator, union rep…or a real estate agent. Remember that fiduciary responsibility your agent has to you. It’s your agent’s job to get you the best possible price for your home, or to see to it that you get the best possible deal on the property you want to buy. 

Agents are trained to negotiate well, if only from experience. They know what normally works and what does not. Most have tried-and-true techniques all their own. And, most importantly, they have no emotional stake in the outcome that can cloud their thinking. 

You, on the other hand, might be willing to come up with $10,000 more to purchase that to-die-for home, never realizing that it’s really not necessary because you possess certain bargaining chips. It’s just more money saved if you have an agent who prevents you from taking an unnecessary financial plunge. 

The Bottom Line

Henry Ford once said that it proves that you’re smarter than they are when you hire people who are smarter than you. The trick is to recognize when you need help and to find the right person.

Frequently Asked Questions (FAQs)

How much does it cost to hire a real estate agent?

You’ll typically pay between 5% and 6% of the price you sell your house for, which will be split between your agent and the seller’s agent.¹

How can I find a real estate agent?

Word of mouth can be a great way to find an agent. Ask friends, family, and coworkers whom they would suggest. You can also contact reputable real estate offices in your town and ask which of their agents have experience selling in your neighborhood. Once you narrow it down, interview your top real estate agent choices, and ask them to prepare a listing presentation to show you how they would market and sell your home.

What’s the difference between a real estate agent and a Realtor?

A real estate agent is licensed to sell real estate, and so is a Realtor. A Realtor is a member of the National Association of Realtors. Members of NAR must adhere to a code of ethics and take ongoing education to keep their designation as a Realtor.

If you’re getting ready to buy or sell a house, you might be weighing the pros and cons of hiring a real estate agent. Some people will avoid working with agents or realtors because they think real estate agent fees are too high. Others wouldn’t hire one because they’ve had bad experiences in the past. However, this only emphasizes the importance of having a good agent to work with. In addition, if the only reason you’re not working with an agent is to save money by not paying fees and commissions, then you’re overlooking the main benefits of hiring a real estate agent. What does a real estate agent do and how do they make your transaction easier? Here are the top 10 reasons why you need a real estate agent whether you’re a seller, buyers, or a property investor.

#1 Agents Know What to Look For

Those in the market to buy a house or an investment property usually have a firm idea of what they want, from the number of bedrooms and bathrooms to a swimming pool and other must-haves. You’ll probably feel comfortable looking at homes for sale with that list tucked firmly in the back of your mind. However, there will always be properties in the area you wish to live in. So the question is, which one of these homes will suit your specific needs and budget?

If you’re buying a home without a realtor, then you’ll have to sift through all the available options yourself. Anyone can imagine how time-consuming this task is. An experienced real estate agent, however, will shortlist properties for you based on your wish list. Realtors typically know every house on the real estate market and it’s their job to find the one that fits your needs and budget. The agent will also guide you through the buying process, making it smooth and stress-free.

#2 Agents Have Extensive Market Knowledge

No one understands current real estate market trends and conditions better than agents. If you’re a property investor, this is one of the main reasons and benefits of hiring a real estate agent. Top agents are well-versed with all aspects of the housing market, especially how different factors like mortgage interest rates and the unemployment rate can affect it. They also have intimate knowledge of street-by-street and even house-by-house market, for both buyers’ and sellers’ markets. Thus, they know the ins and outs of the market and know more details of homes for sale than the info found on the MLS.

The type of real estate data they possess includes the median and average sales prices, ratios of list-to-sold prices, and average price per square foot of similar properties. They can also identify real estate comparable and hand this information to you, so you can make an informed decision quickly. Other market knowledge that only a local agent will know include which neighborhoods are near great schools, which neighborhoods saw the greatest increase in market value over the years, and what are the most promising projects in a given area. All of this allows agents to help you determine whether or not a certain neighborhood is good for real estate investing.

#3 Agents Have Professional Networks

Real estate agents are professionals at networking. They know just about everyone involved in the process of buying and selling a house. Many will have a list of preferred providers who they have worked with in the past and who they trust. This is one of the benefits of hiring a real estate agents that both buyers and sellers will find very helpful. For example, if you’re selling a house, a seller’s agent will give you a list of contractors, home repair professionals, staging companies, title companies, landscapers, plumbers, painters, etc.

Buyers also need to work with professionals including inspectors, appraisers, real estate lawyers, and mortgage professionals. Instead of researching these people individually and reaching out to them on your own, you can tap into your buyer’s agent’s network. This is especially beneficial for a beginner real estate investor as it’ll help you start building your own network of professionals whom you can trust and rely on for future property investment deals.

#4 Agents Spot Potential Problems

Next on the benefits of hiring a real estate agent is also great for both property buyers and sellers. When selling a house, owners need to make sure that the property is in great shape. That helps in attracting more buyers and potentially sell the property faster and at a higher price. Buyers, of course, are also looking for homes for sale that are in good conditions so they don’t have to spend money on repairs after they’ve just paid for the house. However, there are some problems that might not cross your mind or that may be hiding out of site and which could potentially disastrous hazards.

This is another reason why you need a real estate agent. Realtors have trained eyes that identify potential problems that you may not see like furnace issues, roofing problems, leaks, and mold and insect issues. An agent will also have a home inspector provide a detailed report on problems with the house. A buyer’s agent will have a good sense of what’s reasonable repairs to request. If you’re a seller, your property agent will let you know of the best approach to fixing these issues. Remember, your real estate agent responsibilities include protecting your interests, so this knowledge will help you save thousands down the road.

#5 Agents Provide Valuable Price Guidance

As a homeowner, you might think you know how much your house is worth. But is the price that you’ve arrived at reasonable? Most of the time, emotions may cloud your perspective which would lead to overestimating your home’s value. Some might also stumble on the wrong side of the equation and drastically undervalue their homes. The only way for you to know for sure is by identifying real estate comps that confirm that you’re in the right range. This will help you sell for the optimal price or buy at the right price. But, the easier way is working with real estate agents.

Most real estate agents can set a price on a home the minute they walk through the door. While anyone can spend a few minutes online and pull information on sales of comparable properties, agents have the experience to know whether a specific house is overpriced or underpriced. They will also perform a comparative market analysis to evaluate all the data that affects home values. As a result, they help sellers develop an accurate and realistic listing price that would attract buyers. Buyers’ agents, on the other hand, will help in making the right choice regarding how much to offer on a house.

#6 Agents Have Superior Negotiating Skills

Buyers and sellers want one thing: to get the best real estate deal possible. To achieve this, you need to have savvy negotiation skills. Negotiating directly with a buyer or seller is difficult, which is another reason why use a real estate agent. Realtors are skilled negotiators as they have years of negotiation experience under their belts. They know what normally works and what does not. Moreover, it’s your agent’s job to always strive to get you the best possible price – whether you’re selling or buying an investment property. They will use their analysis of real estate comps in the area to build a strong case so you can get top dollar. And, most importantly, they have no emotional stake in the outcome that can cloud their thinking.

#7 Agents Provide Home Staging Advice

Selling your home but not sure if it’s aesthetically up to par? Your agent can handle that! The goal of home staging is to make it easier for buyers to see themselves living in the house. This will help find a buyer quicker and decrease your time on the market. And agents are pros when it comes to staging homes for sale and makes them look great to attract the right buyer. A top real estate agent knows what buyers are looking for and uses his/her tools and resources to make your home appeal to the most likely buyers. Whether it’s moving furniture around or bringing in some of their own props, they know to make your home look like it’s ready to be sold.

#8 Agents Have Access to Off-Market Listings

Are you still wondering do I need a real estate agent to buy a home as an investor? Well, here’s another reason why you need a real estate agent – access to off-market listings! MLS listings and property search websites can show you an array of properties for sale in an area. However, there are cases in which sellers don’t want the fact that they’re selling to be widely publicized. So, they don’t list their homes or put a “For Sale” sign on their yard. In those cases, only agents are aware that the homeowners are looking to sell and try to find buyers.

Hence, one of the best ways to find off-market properties is by working with real estate agents. Savvy investors know that these real estate deals are some of the best investment opportunities out there because they’re cheap and have high ROI potentials. With access to both listed and off-market properties, your agents can offer you a wider selection of investment properties to choose from. The more options you have as a real estate investor, the better your chances of finding the best investment property that fits your criteria.

#9 Agents Know the Best Marketing Techniques

This is one of the benefits of hiring a real estate agent that sellers should pay attention to. Many who choose to sell a house without a realtor end up either not selling or selling for less than their asking price. One of the reasons why those “for sale by owner” deals don’t sell is because they’re not marketed well enough to attract buyers. Property agents and realtors, on the other hand, have been working in the real estate industry for several years and know that best marketing strategies that will get the house in front of potential buyers and make sure people show up for an open house.

For example, they might already know someone from their network who is interested in buying a home exactly like yours. They also have access to the Multiple Listing Services. A person without a real estate agent license can’t have access to the MLS. So if you want your home to be posted on there, you need an agent to post it for you. This will greatly increase the amount of exposure your house gets. Not only that, but agents also know what to focus on when marketing a property. They know what a specific buyer is looking for and how to market it to the masses.

#10 Agents Save Time and Energy

Closing a real estate transaction is typically a long and lengthy process. Working with real estate agents, however, can make the process easier for you. If looking to sell a property, the agent will handle open homes and showings so you don’t have to make all those appointments yourself. The sellers’ agent will also filter all those irritating phone calls that lead to nowhere and, hence, help you in identifying serious buyers. If you’re a buyer, your agent will similarly protect you from being inundated with calls and the marketing tactics of sellers.

Moreover, the process of closing real estate deals involves exhaustive paperwork. This includes tricky contract documents, requests, offers and counteroffers, settlement statements, federal and state-mandated disclosures, and more. Most home buyers and sellers are shocked by the sheer amount of paperwork they need to deal with when closing a deal. You can make things a whole lot easier for yourself by hiring a real estate agent who knows how to handle everything, makes the process more convenient, and ensures that nothing falls through the cracks.

The Bottom Line

Whether you’re buying or selling a home, an agent is your ally. As you can see, there are numerous benefits of hiring a real estate agent. Keep in mind that agents and realtors depend on referrals to grow their business. This means they’ll make all their efforts to ensure you’re happy and satisfied with their service so you can recommend them to your friends and family. In addition, the agent you hire is going to be around for the long run and will be there for you when you need to sell or buy another property. This is a bonus benefit and one more reason why you need a real estate agent.

If you’re thinking of selling your home, your mind may be swirling with questions about the process. While it may be tempting to try selling your home on your own, there are many reasons why you may want to consider working with a professional real estate agent. To gain insight, it’s helpful to understand what a real estate agent does and why you might want to hire one. You also may want to consider hiring a Realtor^®, which is a professional designation for real estate agents who are members of the National Association of Realtors^® (NAR). NAR members subscribe to a strict code of ethics for real estate professionals.

Why You May Need a Real Estate Agent

Just as you’d likely hire a licensed professional to make repairs to your home, hiring a real estate agent can help give you peace of mind and confidence throughout the selling process. Below are 10 reasons why you may want to hire a real estate agent to sell your home.

1. Real estate agents can help price your home to sell.
Generally, as the seller, your primary goal is to sell your home as quickly as possible at the best price, so you can move on to your next place. However, a significant factor in making a quick sale is ensuring your house is appropriately priced for the market. As the homeowner, it’s easy to think you know what your home is worth, but there’s likely a bit of subjectivity that goes into your estimate. A real estate agent has a more fact-based process that involves pulling comparable recent home sales within a specified radius and reviewing your home against these to determine a fair asking price. If he or she is a professional with no emotional attachment to or biases against your home, your real estate agent can guide you in setting a competitive price that makes sense for the real estate market in your area.

2. They have home selling expertise.
Whether you’ve sold a home in the past or this is your first time, working with a real estate agent can help you gain home selling knowledge that only an expert can provide. That’s not to say tackling the process on your own is impossible. However, since a real estate transaction is likely one of the largest financial transactions you’ll ever make,¹ it makes sense to leave the ins and outs to a professional to help ensure all goes smoothly.

3. Real estate agents offer valuable professional service.
As a seller, you can expect to pay a commission to your real estate agent at the closing. That factor alone is the reason behind many “For Sale by Owner” situations. However, it’s worth noting that many real estate agents offer their sellers certain perks at no additional cost, such as a professional photographer to take beautiful photos of your home, a deep-cleaning session, staging advice and more. All of these extras can make a big difference when it comes to how quickly your home sells and may not cost you anything out of pocket.

4. Real estate agents recommend ways to sell your home faster.
One thing most sellers wrestle with is whether they should tackle certain home improvement projects before listing their home for sale. A real estate agent can offer advice that will help you make an educated decision before you invest in a big home project that may or may not pay off during the selling process.

5. Only real estate agents can get your home on the multiple listing service (MLS).
One of the biggest challenges of selling a home without a real estate agent is finding the best way to distribute your home listing to potential buyers. Advertising is a pay-for-play process, so selling your home on your own will require you to spend money up front in order to get your listing in front of as many eyes as possible. Working with a real estate agent provides your home access to the MLS, which is generally considered to be the primary system all real estate agents use to search for the most up-to-date home listings. MLS listings are what most buyers look at when searching for a home.

6. Real estate agents have important connections.
Another benefit of working with a real estate agent is his or her access to valuable connections in the industry. Whether it’s putting you in touch with pros who can help with home repairs or simply sharing your listing with other real estate agents in their office who may have interested clients, your real estate agent can offer resources that may be superior to tackling the process alone.

7. They market your home professionally.
Marketing your home doesn’t begin and end with the listing. There’s much more that goes into it. Real estate agents are constantly marketing your home via their own websites, social media, videos, flyers and through events like open houses or broker luncheons. That alone may be a great reason to work with a real estate agent to sell your home. Not only is marketing your home on your own time-consuming, but you may not necessarily have access to all of the tools that a real estate agent has at his or her disposal.

8. Real estate agents take the time, so you don’t have to.
Speaking of time, selling a home requires a significant time commitment that most people simply don’t have. If you have a job or a family, it will be challenging to manage the entire selling process, from marketing your listing to scheduling showings and handling negotiations. Working with a real estate agent takes all those responsibilities out of your hands and allows you to focus on other things like keeping your home show-ready and finding a new home to move into once your current home sells.

9. Real estate agents handle the negotiation process professionally.
One of the trickiest, yet most important, aspects of the selling process is handling negotiations with potential buyers. A good real estate agent will tackle negotiations professionally and work hard to sell your home for the maximum price so you don’t have to give up any additional sale proceeds aside from agent commissions. Real estate agents handle negotiations day in and day out, so you can feel confident in their ability to look out for your best interests.

10. Real estate agents can offer objective support.
Let’s face it: selling a home is an emotional process. Your house is more than just four walls and a roof; it’s the place you called home and where you created memories that are special to you. Hearing feedback from potential buyers could be a tough pill to swallow – whether it’s something about the house or yard they don’t like, or maybe they do like the house but offered a lower price – having a real estate agent with an objective mindset can help to keep your emotions and stress at bay.

Once you’re on your way to selling your current home, be sure to keep homeowners insurance in mind when purchasing your next home. Learn more about San Diego Real Estate homes for helping to keep your biggest investment safe and sound, and when you’re ready to get started, get a home insurance quote or contact your local independent agent.

Selling a home or investment property is a big decision. There are a lot of things to consider and questions to answer. A good real estate agent can really make a world of difference.

But how do you know which one is the right one?

There are so many options to choose from, which can make it seem a bit overwhelming! From the big, well-known agencies to the smaller, local specialists – here are some tips to help you find the best agent for selling your property:

Finding the right Real Estate Agent for you

1. Ask around: the opinions and experiences of people who have “been-there-done-that” are incredibly valuable. If anyone you know has recently bought or sold the property, ask them who they dealt with and how it went for them. Ask friends and family- the more information you have the better decision you can make.

2. Check online: just like most subjects, the internet is the place to go for any information about particular agents or agencies, whether good or bad.

A legitimate agency will have an official website with testimonials from previous clients. Most will also have Facebook pages that contain reviews and recommendations. Individual agents, especially from larger companies, will often have their own social media pages so you can see feedback related directly to them.

You can be fairly sure that if anyone has had a bad experience with a real estate agent – it will most certainly be on the Internet!

3. Pay attention to professionalism: if you have found great feedback about an agent online or someone has recommended them to you personally, you have a good base to work from. But, you should also consider the little things.

• Are they professional and polite?
• Do they respond to calls and emails promptly?
• Do they seem genuinely interested in helping you?

Some of the “best” agents are the ones with the busiest portfolios, so they are also the ones who forget to reply to your queries, miss appointments, or maybe can’t remember who you are when you call. Finding someone who clearly has respect for you and wants to offer you great service is important.

4. Consider your target buyers: what kind of agent does your property require? Selling family homes, investment properties, or “fixer-upper” properties all have very different target markets and you will want an agent with proven success in the area you need.

5. Check commission and other hidden fees: ah yes – the big question! How much money are they going to be taking off of your selling price? And what other hidden fees might pop up? These will most likely include marketing and admin fees, but you might find others. Ask about this upfront so there are no surprises further down the line.

6. Ask Questions and research: like we said, this is a big decision and you shouldn’t be afraid to ask questions to make sure you are getting the best person for the job. Ask prospective agents for sales histories, their strategies for getting you the best deal, and what they believe sets them apart from the rest.

It is also a good idea to get familiar with the Real Estate Authority (REA) Code of Conduct so you know what your rights are.

Choosing the right real estate agent can be the difference between selling your home for what it is worth and not getting the sale or the price you are after. So do your homework first!

Looking to buy a new site?

If you’re buying a new property don’t forget to do your due diligence in full! This should include reviewing the building consents and resource consents on the property- make sure you know what’s been legally established and what resource consent conditions you need to meet. Don’t forget that part of the service we provide is due diligence; contact us if you have any questions.

Hiring a professional real estate agent when buying or selling a home can help you make smart decisions and avoid costly mistakes.

But not just any agent will fit the bill. Here’s how to choose the right real estate agent for you.

Real estate agent basics

Before you start looking, it’s helpful to know what to expect from an agent and some of the terminologies you’ll encounter.

What does a real estate agent do?

Real estate agents help people buy and sell homes. Agents educate their clients about current market conditions, guide them through each step of the process and make referrals to other professionals, such as home inspectors and real estate attorneys. Their particular titles depend on who they’re representing in a real estate transaction.

• A buyer’s agent helps buyers find and shop listed homes, make competitive offers and negotiate with sellers.
• A listing agent helps sellers price, list and market their homes, and negotiate with buyers.

In some cases, an agent can represent both sides in a single transaction, but it’s best to have someone who’s solely in your corner.

Realtor vs. real estate agent

Not every real estate agent is a Realtor. Realtors have licensed agents who are members of the National Association of Realtors. Members pledge to abide by the association’s standards and code of ethics.

All real estate agents must be licensed in the states where they work and abide by national and state laws. Licensure requires agents to complete a certain amount of coursework and pass an exam. Check with your state’s real estate commission website to find out if a particular agent is licensed.

» MORE: Tips for first-time homebuyers

Difference between a real estate agent and a broker

A real estate broker has gone a step beyond the agent level with additional training to get a real estate broker license. Like agents, brokers must complete state-required coursework and pass an exam to get licensed. A broker can oversee other real estate agents, work under a managing broker or operate independently.

How to find and interview real estate agents

Ask friends and colleagues for referrals to find several prospective agents. Look up the agents’ websites and online profiles, read about their specialties and experience, and check out customer reviews.

Choose at least three agents to interview and dig into specifics about how they would work with you.

What buyers and sellers should ask real estate agents

Here are the key things to find out, whether you’re buying or selling a home.

Will the agent represent my interests?

You might assume any real estate agent you choose will represent only your interests. But in some cases, real estate agents aren’t legally required to represent solely the buyer or the seller in a transaction. For example, a “dual agent” represents both the buyer and the seller in the same deal, and a “transactional agent” works with both sides, but has no fiduciary responsibility to either.

Understanding the nature of the agent’s role when working with you is critical. Ask prospective agents if they will represent only your interests through the entire process, and request a written form that discloses the relationship, advises the Consumer Federation of America.

What experience and training does the agent have?

How long has the agent been working with clients, and what training or recognition does the agent have? Look for an agent with a good track record of serving clients like you.

Will the agent or assistants work with me?

Agents sometimes have assistants working for them on a team. Will you work more with the agent or with the assistants? An efficient team can serve your needs well, but make sure you’ll have enough direct access to the agent.

How much will the agent be paid?

Usually, the seller pays the real estate commission, which the listing agent splits with the buyer’s agent. A typical real estate commission is 5% to 6% of the sales price.

As the seller, you may be able to negotiate a lower rate, particularly for a high-priced property, according to the Consumer Federation of America. As the buyer, you can ask for a rebate of a portion of the buyer agent’s commission.

Agents may not be willing to budge on the commission, but it’s worth asking.

» MORE: How much does it cost to sell a house?

Were recent clients satisfied?

Request references and talk to clients who worked with the agent in the last year. Were they satisfied with the agent’s work? What went smoothly, and what didn’t go well? How did the agent deal with challenges? Conversations with recent clients will give clues as to whether the agent is a good fit for you.

Finding a real estate agent: Tips for buyers

Here are some things to think about when choosing an agent to help you buy a home.

• What challenges will I face as a buyer in today’s market? A good agent will set realistic expectations by explaining the availability of listed homes and the level of competition you’ll face with other buyers.
• How will you help me find listed homes in my price range? Ask for examples of how the agent has recently helped other buyers similar to you. This will give a sense of how well the agent will serve your needs.
• How will you help me make competitive offers and negotiate with sellers? Look for an agent who will help you stay grounded within your budget and goals.

» MORE: How to find a buyer’s agent

Finding a real estate agent: Tips for sellers

Here are some things to think about when choosing an agent to help you sell a home.

• What are the comparable listings in my area? An agent should provide a comparative market analysis, showing homes similar to yours that were sold in the last six months.
• What do you think my home is worth and why? An agent who recommends the highest price isn’t always the best choice. Choose an agent who backs up the recommendation with market knowledge.
• What should I do to improve my home? You may need to fix things up to sell your home, depending on the local real estate market. Listen for solid reasoning about what your home needs and the return on investment for making those improvements.
• How will you market my home? Agents will likely suggest putting your home on the Multiple Listing Service and real estate websites, such as Zillow. Get details about other promotional tools the agent will use, such as photos, video tours and advertising. The level of marketing required to sell a home depends on the market. Less marketing may be required when there are more buyers than homes for sale.

» MORE: How to find a listing agent

How to choose a real estate agent

Compare agents’ experience and approaches, as well as their ability to establish rapport. Is this someone you’ll feel comfortable working with? Choose a competent agent with a working style that clicks with yours.