The global recession has urged a lot of home sellers/buyers to opt for the DIY sale to avoid paying commission for the services for the services of a real estate agent. While it is a valid argument it is important to note that 80% of buyers and sellers still turn to estate agents when buying or selling property. Here are some reasons why the majority still choose to use an agent:
Agents apply their experience and education:
By using the expertise of a real estate agent you are tapping into the agent’s knowledge and expertise. This is specifically important as agents know which procedures to follow and how to go about getting the best deal.
Agents take care of complicated paperwork:
Because estate agents know the procedure of buying and selling property, they can assist you in the time-consuming and confusing paperwork that goes with the transaction.
Agents can practice negotiating skills:
Negotiating skills are essential if you want the best deal. Agents see this as an integral part of their job description, which includes knowing how to make a case for their clients and by doing so insuring the best possible price.
Agents can share knowledge of the Neighbourhood:
Agents can answer all your questions regarding the neighbourhood you want to buy in, such as the quality of the schools, the noise levels, recent marketing activity, house pricing etc.
Agents can help with price guidance:
Having knowledge of the market means that agents can easily tell you how much home you can afford as well as how well as how much to cell your property for.
Agents are objective:
Having an agent around when you view a property means that you will always have an objective opinion. Agents see things differently and can help you identify the strengths and weaknesses of a property. They also know exactly what to look for.
Agents sell homes faster:
It has been proven that when you use an agent you will sell your home faster.
Advertising a property is expensive:
When you work with an agent you are not only relying on their name and reputation to advise your property but you are also using all their resources For Sale/On Show banners, listings in newspapers/magazines and on the internet. If you decide on a DIY sale, be prepared to cover advertising out of your own pocket.
An agent has access to additional information:
Agents have loads of information such as how long has a property been in the market, the neighbourhood and school system, the homes best features etc. This can come in handy when you have to decide on a property.
An agent can make recommendations:
Agents know the best lenders, home inspectors and other recourses that you might need when you buy/sell a property.
While an estate agent typically represents a seller in any residential property transaction, they also act as a liaison between the buyer and seller and work closely with buyers to find them a suitable property and navigate the finance process among other services.
It is just as important for buyers to have a good working relationship with their agent as it is for sellers. Buyers need to be able to trust the estate agent they work with and be confident that they will get good, knowledgeable and professional insight into the areas and particular properties they are looking at purchasing, as well as general solid advice around the property investment. But, in order to get the best information from an estate agent, buyers also need to ask the right kind of questions.
About the Agent
1. Do you have a current fidelity fund certificate to operate as an estate agent?
2. How long have you worked in the areas I am interested in purchasing in?
About the Buying Boundaries and Timing
1. How much can I purchase for?
2. How long does it take to register a property?
3. What is the transfer process?
4. Which properties offer the best value?
About a Specific Area
1. What are the best areas in which to purchase?
2. What are the areas that offer the best return?
3. In which areas have you seen the property values rise above other areas
4. What is crime like in these areas?
5. What is the traffic like in this area?
6. Which schools would you recommend?
7. Are there any land claims in the area?
About a Specific Property
1. What are the transfer costs?
2. How long has the property been listed on the market?
3. What was the original listing price of the property?
4. Why is the owner selling?
5. How old is the property?
6. What is the size of the property building?
7. What is size of the land?
8. Is there dedicated parking for my unit?
9. Are there approved building plans for this property?
10. Are there any defects in the property that I am to be made aware of?
11. Are the municipal rates up to date?
12. What are the monthly costs of the rates, water, electricity, sewerage, and refuse removal?
13. Is the body corporate financially solvent?
14. Will the seller repair any of the patent defects that are visible?
15. What are the rules of the body corporate/home owners association?
16. Does the property have security measures in place and is it linked to a security company?
In conclusion, the more prepared buyers are for the process and costs involved with buying a property, as well as specific details of the area they are interested in and property they are looking at buying, the less chance of buyer’s remorse or nasty surprises and the higher the chance of finding a property that is a perfect fit.