September 30 — Equity, Pre-Approval, Contingencies, Appraisal. These are terms related to buying real estate, but even experienced home buyers may not fully understand them.
Navigating the real estate market can be difficult, but in today's economic climate filled with inflation, high interest rates, and skyrocketing home prices across the country, understanding the ins and outs of buying and selling real estate is becoming increasingly important.
"We know the ins and outs of buying and selling a home. It's the little things you shouldn't overlook when making important financial decisions," says real estate agent Stacey Wren of Happy Homes Real Estate, LLC.
These details are why buyers and sellers can benefit from the help of an experienced real estate professional.
Types of real estate professionals
Many people use the terms real estate agent, real estate agent, and real estate agent interchangeably. Although these professionals perform many similar tasks, there are some notable differences between them. Realtor is a brand name used to describe a real estate professional who is a member of the National Association of Realtors. These individuals must adhere to a strict code of ethics and have access to market data and transaction management services specific to that entity.
Real estate agents are licensed to help people buy and sell real estate and earn a commission after the transaction is completed.
Real estate agents do the same job as agents, but are also licensed to operate independently and can employ their own agents. According to Investopedia, a broker may also receive a commission from the broker in addition to his own commission.
Buyers and sellers
The professional may represent the buyer or the seller, or both. During a transaction, the buyer's agent negotiates for the buyer and the seller's agent negotiates for the seller.
Real estate professionals can also represent both parties, which is called dual agency. This usually does not happen in the same transaction because it could cause a conflict of interest. For real estate transactions, commissions are typically 5 to 6%, and this amount is shared by all real estate professionals working on the transaction.
Why work with a real estate professional?
Homeowners may wonder why they should use the services of a real estate agent, broker, or real estate agent. This is especially true for sellers, as buyers typically don't pay real estate agents.
- Competence. Given that buying and selling a home is one of the largest financial transactions you can make, it makes sense to entrust it to experienced professionals.
— Correct housing prices. A real estate professional will do a market analysis and look at "companies" in the area to determine a fair price and help move the home. When working with buyers, an agent or broker can also help them find a fair offer price.
"We can also connect buyers with local lenders," Wren said.
— Access to the MLS. Agents and brokers have access to the Multiple Listing Service, which is widely used in the United States to list available properties. This helps sellers sell faster and allows buyers to view multiple properties in one database.
"Together with the MLS, we know the best way to promote a property on social media to get more views and sell faster," Wren added.
- Negotiations. Transferring negotiations to a third party can help all parties resolve issues and agree on acceptable terms.
Buying and selling real estate is a complex process
For sellers, Wren says a professional can streamline the process and make it more enjoyable for both buyers and sellers.
Wren also reminded buyers and sellers to be more secure when using third parties.
"You don't want random people coming to you, we organize everything, make appointments, meet potential buyers."
Wren also cited more personal reasons for using a professional.
“It can make the process less emotional. You don't want to hear someone walking around your house commenting on the color or finish of your walls.'
