To Hire an Agent…or Not?

Why does someone need or use a Real Estate Agent anyway?

Let’s face it, times have changed to where many people see today, more than ever, they can find a home, or market a home, without the use of giving away 6-7% of the value.  Is this all about expense, or even understanding.  Or is this about being your own person?  Many see the question as simply being reduce your cost of the sale and do it yourself. 

If that was the case, then the world of sport, or business would not be what it is today.  All sports have coaches.  All business, of any substantial impact, has a board of directors.  These people are compensated based off the advancement, or not, of the industry or product that is being delivered. 

If you’re considering not using an agent or going the “For Sale by Owner” (FSBO) route, first take a look at the stats. The latest data shows the typical FSBO home sold for $200,000 compared to $265,000 when sold by an agent.2

Every property has a value that is based off the market.  The Market is an interesting thing.  When you are a part of it, it is like being a tree in a forest.  Unless you have perspective, you have no idea if you are the biggest, the most beautiful tree, or if cutting down the tree and starting over is the best plan of attack.

Market experts, or coaches, or agents, are essential in making the most of the opportunity and experience of life.  By having an agent, one gains perspective.  By having an agent, someone is able to work smarter and not harder.  By having an agent, knowing if the act of transaction is even in the best interest of the client.  And if not now, when?

Truly, some agents and clients do not understand the nature of the relationship. 

Many don’t understand how every piece of the market effects other parts of the market.  Is the market appreciating or depreciating?  Should I be more concerned about schools in my area based on my current and future life plans, or should I take advantage of strategically planned communities.  What are the future development plans of my community and how will those affect the value of my asset?

Certainly, an individual can operate without a coach.  Any experience can be done alone and without the benefit of those who have experienced substantially more of the experience than we have.  However, the system of bringing others life experiences to bare, should be, and can be worth the investment.

Once someone decides if they wish to have a coach, agent, advocate, on their side, it is then essential to go over the expense and where it goes. 

That is next.