What Buyers and Sellers Should Know About Real Estate Transactions

Buying or selling a home is not a task that the average person undertakes on a regular basis. What was normal in the industry 10 or 20 years ago rarely applies today. That is a good reason to work with a trusted agent that is current with today's market. Thinking you know the intricacies of today's market can hurt your chances of buying or selling the right home at the right price.

If you haven't bought or sold a home in many years, you first need to be aware that technology has made big changes in the way these transactions take place. Both the selling and buying transactions begin on the internet. In days gone by, both buyers and sellers asked the advice of trusted family and friends to recommend an agent. Then the agent made recommendations about how to market a house for sale or a particular house to consider purchasing after learning the goals of the client.

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Today, buyers begin their search for houses online, making it important that sellers have their homes presented online in the best fashion possible. One thing that is constant today is that you still need to find a trusted agent before making a listing or purchase decision. You can take the advice of friends and family and then interview several agents before making a decision. Sellers want an agent that has a vast understanding of how best to market a property online as well as show it to potential buyers. Sellers want to take what they see on the internet with a grain of salt and seek out the services of an agent that thoroughly understands the local market.

Not Using and Agent Saves Money is a Myth

Some buyers and sellers believe they can save money or make more money by not using an agent's services. In almost all cases, this is incorrect. As a buyer, you need to realize the full commission is already built into the price. If you purchase without an agent, the selling agent will receive the entire commission instead of splitting it with a buyer's agent.

As a seller, if you don't have a listing agent, the buyer is going to expect you to sell at a price that discounts the market price to compensate for not having to pay the commission. Some people do successfully sell their home them self. However, they need the right skills and it takes a lot of work. Sellers need to list the home online. They need the marketing skills to attract prospective buyers. Then the contract needs to be negotiated. Once that is done, all of the closing arrangements need to be arranged. That's assuming no problems come up in the negotiations that need to be taken care of. Professional agents have all of the resources in place to take care of these issues in a timely manner.

Remodeling Rarely Pays for Itself

A professional rehabber can make a remodel job pay for itself and even deliver a decent profit when they buy at the right price. They do this because they know what the market wants and they have resources in place to have the work done at the right price. One-time sellers seldom have the skills or resources to accomplish this.

Studies show that most homeowners only recover between 68 and 70 percent of what they spend on major kitchen and bathroom remodels. Studies also suggest that these remodels can lead to the property staying on the market longer than homes that adjust the price downward to compensate a need to remodel. If your home needs to be remodeled, one good strategy is doing it a few years before you plan to sell. That way, you enjoy the benefits of the remodel for a while to compensate for not recovering the full cost at the time of sale.

The Right Open House

Open houses for public viewing rarely result in offers or a sale. Agents that hold public open houses are typically looking for other clients looking to sell or buy a home. If an agent chooses not to have an open house, it probably doesn't hurt a seller's chances of finding the top buyer. On the other hand, open houses exclusive to other agents is beneficial. You want as many agents as possible in the local market to be aware of what you have for sale.

Whether you are a buyer or a seller, you want a professional real estate agent that clearly has your wants and needs in mind. Also an agent that has a full understanding of the local real estate market.

Please leave a comment if this article was helpful or if you have a question.

Author bio: Brian Kline has been investing in real estate for more than 35 years and writing about real estate investing for seven years. He also draws upon 30 plus years of business experience including 12 years as a manager at Boeing Aircraft Company. Brian currently lives at Lake Cushman, Washington. A vacation destination, a few short miles from a national forest. in the Olympic Mountains with the Pacific Ocean a couple of miles in the opposite direction.