In any given industry, buyers and sellers will be on opposite sides of the financial equation. Buyers don’t want to pay one dollar more than they have to and sellers want to maximize their profits. Supply and demand usually determine the going rate. Today’s housing market is one of the most challenging in decades. Buyers are facing the high cost of borrowing money, soaring home prices, and a lack of inventory. Existing home sales slid 19% in 2023 from the prior year to 4.09 million sales, according to the National Association of Realtors. That’s the lowest full-year level since 1995. Even in a seller’s market, home prices are being adversely affected by the high-interest rates. Today’s higher interest rates are limiting what people can or are willing to afford in monthly payments, which in turn impacts even the most desirable home’s listing price versus actual sales price.
ADVANTAGES OF HIRING A BUYER’S AGENT
Why do the vast majority of homebuyers choose to hire a REALTOR® rather than do it all themselves? No doubt, the internet makes it easy to go “window shopping.” If only buying a house was as uncomplicated and as convenient as buying something on Amazon. You can’t just return it…and your financial commitment can last decades.
MARKET KNOWLEDGE AND CONNECTIONS
One of the biggest benefits to working with a buyer’s agent is their applied experience and know-how. Dedicated to finding the perfect home for their clients, buyer’s agents serve as professional investigators and as such, make sure they stay “in the know” of the latest market activity. Through their constant vigilance and huge network of professional and personal contacts, they often will get you in the door of homes before or as soon as they hit the market.
CONTRACT AND TRANSACTION EXPERTISE
When a desirable listing gets multiple offers as often is the case in a seller’s market, experienced REALTORS® know how to help their buyers structure an offer strong enough to entice the seller into accepting it. Experienced agents have helped clients build homes from scratch and to renovate down to the studs…all crucial to understanding the condition of properties, uncovering expensive repairs, and to determine what would improve the property’s value. What inspections should you order? What repairs should you request and then what? An experienced REALTOR® will have the answers to all your questions regarding the loan process, the purchase agreement, due diligence, repair issues, addendums and disclosures and will guide you through every step to ensure the transaction process runs smoothly.
THE ADVANTAGES OF A LISTING AGENT
It’s interesting to note, that even in this strong seller’s market, FSBO’s (For Sale By Owner’s) accounted for only 7% of home sales in 2023. The typical FSBO home sold for $310,000 compared to $405,000 for agent-assisted home sales.* For many FSBO’s, the perceived benefit is control of the process, as well as saving money on sales commissions to a listing brokerage. However, it’s important to note that in a FSBO transaction, the seller is also taking on all of the inherent liability.
OPTIMUM HOME PRICING
There’s no easy way to price something that you love or must part with it. This is where an objective professional can be a huge benefit to sellers. Every city and county –and even neighborhoods -- across the Upstate have a different price point. Make no mistake, $400k to 1,000,000k and over does not get the same size home, lot, or building in Greenville as it does in Greer, Easley or Powdersville. Your real estate agent has access to all of the multiple listing service data of recent sales, off-market sales, and tax records and have shown hundreds of homes…so they understand market value, competitive bidding, and what layouts and features are most popular with buyers.
SUPERIOR HOME MARKETING
In order to help you obtain the highest possible price, skilled listing agents have mastered the art of traditional and social media marketing to maximize a property’s exposure. The first showing is usually on someone’s cell phone. Your real estate agent will make sure professional quality photographs and videos are taken (at the listing agent’s expense) to create urgency and entice buyers to book showing appointments immediately. Experienced REALTORS® know what improvements and repairs you should make prior to hitting the market. They know where you should spend money and where to save time and hassle. Listing experts can help you transform a space with stagers, painters, and landscaping so they can capture images that command a buyer’s attention. Great and timely marketing matters and it’s this vital sales component that can seem overwhelming to sellers who don’t have knowledge or expertise in this arena.
SKILLFUL NEGOTIATION & LEGAL NAVIGATION
Real estate stirs up powerful emotions. REALTORS® are master negotiators and conflict coordinators. They understand the purchase agreement is just the beginning of the sales process that includes multiple inspections, financing, contingencies, addendums, and different interpretations of how each scenario should unfold. While the first obstacle is usually negotiating the sales price, one of the most challenging parts of a deal occurs when it’s time to negotiate repairs. This is where time and money can be lost without sufficient resources to gather timely estimates from trusted vendors. There is no universal purchase agreement. Laws vary in every state and are continually changing. No sale or the scenarios involved are ever the same. That’s why, there is no rushing experience when it comes to understanding, explaining, and filling out legal documents. This is especially the case in “back-to-back” contracts –when you are buying a new home and selling an existing home at the same time. These are complex transactions for buyers and sellers, with many variables in motion, and layers of inherent risk. There are real penalties for not complying with legal documents. Ignorance is not a valid excuse.
SECURITY AND PEACE OF MIND
When you put a for sale sign in the yard, you are extending an invitation to strangers to enter your home. Security is always a concern. Your listing agent will generally prescreen interested parties prior to accepting a showing. Buyer agents typically accompany qualified prospective buyers through your property for every showing and subsequent inspections. With professionals on both sides of the deal, there is peace of mind and a strong likelihood that the purchase will be completed successfully. Like finding the right house, selecting a REALTOR that you can trust and work well with is a personal decision. It is highly recommended that you interview several REALTORS before you choose one. There is no substitute for experience. The National Association of Realtors (NAR) established a Code of Ethics to ensure that agents and brokers maintain high ethical standards of practice. REALTORS have a fiduciary duty to their clients, which means they must act in the best interest of their clients and not their own interests. True professionals value the relationship that they are creating with clients and are willing to help long after the transaction is over.
* Source: 2023 Profile of Home Buyers and Sellers
(National Association of REALTORS®)
