Should I Work with a Real Estate Agent?

You can decide to either buy or sell on your own or you may choose to have a real estate agent give you assistance.  In this current type of market, most Sellers are working with a real estate agent. The agent provides them with the type of exposure needed in today’s market conditions to get their property sold.  There is nothing comparable to the Multiple Listing System in providing up to date information on the housing market and providing thousands of professional agents access to that system and consequently to that Seller’s property.

Highly productive real estate agents, whose time is their most valuable resource, are honed into the Multiple Listing System in their property searches.  If your property is not exposed in the MLS, even if you do sell, you are probably throwing away equity. And Buyers understand that most motivated Sellers choose to contact a real estate agent to sell their home, and also most  motivated Buyers are being represented by a real estate agent. Actually a majority of homes are sold by a relatively small number of top producing agents, and in this fast paced world, if your home is not in the MLS, you will miss this resource of agents.

Additionally, an experienced agent has been involved in a wide variety of real estate negotiations, and his guidance can result in a better price for you, either if you are a Buyer or a Seller. By working with experienced agents, Sellers can be somewhat strategically indifferent – they can have a normal life, while the agent handles the marketing, advertising, and the myriads of paperwork involved in the listing and the sale of a property. A standard offer for a purchase in Utah is about 15 pages of small print and the agent will guide you as to which documents need to be properly prepared, signed and delivered.

Also, when you use an agent you get protection that their Errors and Omissions Insurance provides, and should there be a mistake or a missed deadline in the transaction this extra level of protection will be a real blessing. Even though this is a rare occurrence, it can be very expensive when it happens.  Your agent also has a fiduciary responsibility to protect you, and this includes your interests and your money in a transaction. Top agents are dealing with real estate contracts every day, and they can guide you through the details.

Relating to Buyers, it is difficult to come up with disadvantages of working with an agent. Agents are a third party to the transaction, and because they are not emotionally involved they can prevent problems from developing in negotiations. They can help you determine what price range you can afford, in beginning your home search. They can also guide you to lenders to get you pre-qualified for the financing.  And most important, they can give you access to the Multiple Listing System (MLS) properties, that is the most extensive, up-to-date list of homes that are available for sale. And when you decide to make an offer, they will be there to guide you and protect your interests and negotiate on your behalf.  The agent does all of this at no cost to the Buyer, since the agents fee is normally paid by the Seller.

The only disadvantage that sticks out to me of working with an agent would perhaps be selecting the wrong one. Sometimes Buyers or Sellers decide to work with a relative or a friend, rather than treating the decision as a business decision. Things to examine could be the agent’s level of experience with the type of property that you are interested in, their educational background, and their knowledge of the area that you are interested in.  If you are Selling, what marketing channels does the agent access to get your property exposed, and how is it exposed and what, specifically, is their step-by-step approach to getting your home sold. It can be useful to interview several agents, in order to determine which one feels right – in how they treat their clients and how they would relate to your situation.