What does a Real Estate agent DO for all that money?
Many people think that the main reason you hire a real estate agent is for MLS exposure. And, unfortunately, in some cases that may appear to be the primary service some real estate agents provide. However a GOOD agent provides much more than simply a For Sale sign and a listing on the MLS database.
Connections
A good real estate agent has great connections in the real estate world. He has a readily available list of home improvement contractors (heating, roofing, structural, electrical, painting, plumbing etc), one or two good handymen, a cleaning service, legal referrals, and lawn service providers. You should never have to go to the phone book to find help during the marketing process.
Systems
A good real estate agent has systems in place to sell homes far more efficiently than a homeowner ever could. Selling or buying a home within the established real estate system is incredibly efficient compared to selling or buying a home outside of the system. Real estate agents have (or should have) a 7 day/week showing service, MLS access, a contracts library, lock boxes, signs and powerful INTERNET sites.
Expertise
Obviously, one important reason you hire a real estate agent is because you expect him or her to know more about selling homes than you do. Selling real estate professionally requires a license and continuing education, but in reality, 99% of a real estate agent's expertise comes from on-the-job experience. Buying or selling a home is a complex process involving the coordination of multiple parties and careful negotiations. The more experienced the real estate agent, the more expertise he brings to the transaction. Every real estate transaction is a little different, with its own Little quirks, glitches and special circumstances. The best way to get in trouble is when you don't know what you don't know!
Time
Your real estate agent will spend a lot of time managing the sale of your home. There is far more going on behind the scenes than holding open houses and attending closings, although due to the above factors (connections, systems and expertise), a good real estate agent will be pretty efficient at their job. The time your agent spends handling the sale of your home will save YOU lots of time...and money!
Risk (The big one)
You transfer the risk burden to me. I assume the risk. Even with all my connections, systems, expertise, time and money spent, I only get compensated for a guaranteed outcome. One I can influence but not control.
Contract to Closing Services
Sometimes the real work begins after we're "Under Contract". There are inspections to negotiate, lenders to keep an eye on, appraisers to be prepared for. Stringent monitoring of dates and deadlines is important, as is a careful review of the title work. I have a computerized system with 32 follow-up items for every pending sale.
I order the title commitment and ensure that it is distributed to all parties. If there are any problems found in the commitment, I will work with you and the buyers agent to resolve them. I ensure that all disclosures are made properly, in a timely manner, and that all documents have signatures. I review the closing figures carefully so that you get every penny that's coming to you.
I call the buyer's lender and the buyer's agent every week to ensure that the loan is progressing smoothly, and will notify you immediately if it appears the contract is in danger. In this case, I will aggressively renew full marketing.
Sometimes the most painful part of selling (and buying) a home is the inspection. If issues arise in the inspection that need attention, I will help negotiate the best settlement for you, and assist you in making the repairs that you agree to.
In our fluctuating market, appraisals can be problematic. It is not unusual to see a wide range of comparable sales for apparently similar homes, and an unprepared agent can cost his client money if he can't justify the sales price of his listing. I am fully prepared for every appraisal, and may have already previewed any comparable sales the appraiser might use.
Selling your home will have its frustrating moments. How frustrating it is depends a lot on your real estate agent. I promise to do my best to reduce stress before, during and after the sale.