How does real estate agency really work? In other words, who do agents represent? How do they get paid? Why should you hire one?
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It seems like there is a lot of confusion out there about how real estate agency works. I hear a lot of questions like, “Who does my agent represent? How do agents get paid?”
It seems like there is a lot of confusion out there about how real estate agency works. I hear a lot of questions like, “Who does my agent represent? How do agents get paid?”
I want to clear all of that up for you today.
Real estate agents are required by the state to have a license. They are also required to disclose who they represent.
For example, if I come to list your house, then my job is to represent you as the seller and protect your best interests. If I help you find a home, then my job is to represent you as a buyer. My team and I take great pride in representing our clients’ best interests first. You can see reviews from our past clients on sites like Zillow; they love working with us because we put them first.
Some people think that they don’t need an agent, but that is rarely true.
For instance, back in the 90s, day trading was a really big deal. People bought and sold stocks themselves online. I dabbled in it, made some money, and thought I was an expert. Then I wound up losing it all anyway. I learned very quickly that I need experts to help me with stuff like that, which is why I work with a financial adviser and a stockbroker.
Why would you not want an expert to help you?
The same is true when dealing with real estate. You are looking at the biggest financial transaction of your life. Why would you not want to have an expert to help you?
When you work with an agent, how do they get paid? The seller agrees to pay their agent a commission when the house sells. Half of that commission is offered to the buyer’s agent. If you are a buyer without an agent, you are basically neglecting a free service that you should definitely use.
Many sellers call me and say, “Can you list our house for sale?” I go over to look at the property and notice a huge issue right off the bat. I always wonder what agent sold them this house. When I ask, they tell me they didn’t use an agent.
As a buyer, a good agent will alert you to any potential issues with resale value. They will help you avoid any properties that would be an issue for you and your family. They will give you the names of the toughest home inspectors so you can make sure there won’t be any issues after closing.
On the seller side, there are people who think they don’t need an agent to sell their house, but that is a whole other topic. Selling on your own can be a real pain. It’s cumbersome, time-consuming, and you won’t get the same exposure for your property that you would if you hired a professional agent like me.
In most cases, my team will get you more offers, more traffic, and sell your home faster.
Those are just a few examples of why you should work with a real estate agent and how real estate agency works. If you have any questions, just give us a call or send us an email. We would be happy to help you!
