5 Benefits of Hiring a Real Estate Agent

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Entering the housing market alone is intimidating and for a good reason. After considering the data, it is easy to see why everybody recommends hiring a realtor. From fewer paperwork mistakes to better negotiating skills, realtors are vital. Here are five reasons hiring a real estate agent should be a requirement.

1. Agents Are Bound by a Fiduciary Responsibility

Realtors have a fiduciary responsibility concerning their client's interests. Therefore, their client's needs must be put at the top of their priorities. Since they are obligated to put your interests first, you can rely on them. Moreover, it imparts a high standard regarding confidentiality. If you buy a home from an FSBO seller, they are under no such obligations. When realtors do not comply with ethical standards, you can report them to the NAR. The National Association of Realtors binds all agents by an ethical code. Nonetheless, you would not have any recourse after buying from an FSBO seller.

2. Industry Connections Are Worth Their Weight in Gold

Industry connections are possibly one of the most overlooked assets an agent possesses. Since Lehigh Valley real estate agents are familiar with the area, they know everyone. From contractors to soon-to-list sellers, they can connect you with anyone. If you are ready to sell, they could call a staging company for the home first. In addition, the agent's connections may include a photographer and a handyman.

They can get you in touch with an inspector during the sale, easing the close. Although this may sound negligible, it adds up in the end, and it is invaluable. Many homes need to be repaired before someone can sell them. Otherwise, government-backed financing would fall through on the property. Meanwhile, an agent-backed seller would have spoken to a repairman already.

3. Nerves of Steel Help at the Negotiation Table

Whether you are the buyer or seller, negotiating is crucial at the closing table. Otherwise, the other party may get the best of you, taking money out of your wallet. However, going to bat with an agent beside you will alleviate a lot of pressure. Since they represent numerous clients, this will not be their first time closing a deal. Further, they are tied to you by their fiduciary responsibility, so you know they are on your side.

4. FSBO Homes Typically Sell for Less, Like a Lot Less

Frequently, readers find information talking about housing from the buyer's perspective. However, that leaves out half of the deal, and that is a shame. If you are selling and considering doing it by yourself, think twice. According to a 2017 study, FSBOs sold for 30% less than agent-listed properties. Thus, you may be leaving money in the buyer's pocket if you forfeit representation.

Furthermore, you will probably pay commissions anyway if the buyer has agent representation. The buyer's agent's commission will be factored into the final sale price. Nevertheless, the fee you would have paid to the seller's agent will be saved. As a buyer, it always makes sense to hire an agent, as the seller pays the commission.

5. Agent Expertise Ensures Error-Free Paperwork

Even if someone has bought a home before, the details may escape them during the rush. Agents are paid to review details meticulously, understanding every page completely. Nobody should proceed with a closing unless they have a thorough understanding. In many cases, purchase agreements contain more than ten pages. Add federal, state, and local document requirements, and you might have dozens. If a mistake is made, the money you pay for the error could be equivalent to the commission.

For example, if a buyer puts an offer on a home, the deal may be contingent on financing. Suppose the buyer fails to acquire a mortgage and is sued as a result. If they had written a contingency into the deal, they would have been safe, avoiding the ordeal.

Why Everyone Needs to Retain a Talented Realtor

Prior to entering the housing market, anyone should hire a talented realtor. Without their help, mistakes are more likely, and you might lose money. Luckily, there are thousands of talented agents across the country, so finding one is easy.