Buying or Selling a Home: Should You Use a Realtor?
President and CEO of LoanTek, Craig Goebbel, gives sound advice about this oft debated subject...
I have been asked this very compelling question countless times. I always try to give a thoughtful answer based on the questioner’s specific situation. However, there are certain facts, which are true in every buying-and-selling situation and you should consider these issues before you decide whether or not to employ a Realtor’s services.
Doing It Yourself
There is really only one reason people don’t want to use a Realtor. MONEY! Some sellers balk at a realtor’s commission and decide to sell their houses themselves. A buyer may like the idea of working directly with a seller, because they believe the seller might accept a lower sales price. Obviously, the buyer and seller’s motivations cancel each other out and this is born out by statistics. Approximately 82% of all sales have a Realtor involved in the transaction.
The Case For Using a Realtor
First, I admit I am biased. This is based on years of experience. Lenders know a Realtor-created transaction has many advocates (the Realtors) ready to assist the buyer and the seller with any issues that can, and do, crop up from the acceptance of the offer to closing.
For The Buyer
The advantages are numerous. Realtors are easy to find, and getting a referral to a trustworthy Realtor is easy. Realtors have access to the Multiple Listing Service. Virtually all listed homes are available at their fingertips. This service makes locating your ideal home very easy. Realtors know the territory. This is especially helpful if you are new to the area. The Realtor makes all the arrangements for touring and viewing homes. They set everything up and take you there. Consider: do you have enough time and energy to do all the footwork yourself? With the services of a realtor, the hunt for a house just gets easier. They help you draft your offer and assist in the negotiations.
For The Seller
Again, the advantages are numerous. The Realtor performs a market analysis of recent sales to help you appropriately price your home. No one wants to sell for too little nor do they want to overprice their home and have it sit for months. The Realtor devises a marketing plan, advertises and places your home in the largest single marketplace, the Multiple Listing Service, so a buyer can find you. They also make certain you meet every legal requirement so you can avoid serious problems and liability after you have sold your home.
The Realtors Look Ahead
Relatively low mortgage interest rates, low unemployment and high consumer confidence indicate the nation’s housing markets are likely to remain strong, according to the National Association of Realtors. Dr. David Lereah, NAR’s chief economist, believes the favorable economic backdrop for housing activity would continue. NAR forecasts existing-home sales to rise 0.7 percent in 2001 to a total of 5.15 million, the second highest on record. New-home sales are expected to rise 4.6 percent to a record total of 918,000 units this year, and housing starts are forecast to rise 2.7 percent to a total of 1.61 million units in 2001. The association expects the national median existing-home price this year to increase 4.6 percent over 2000, while the typical new home price is expected to be up 3.1 percent from last year. NAR projects U.S. economic growth to be 1.7 percent for 2001 and Consumer price inflation to be 3.3 percent.
Author Information
Craig Goebbel
