Once you have made the decision to buy or sell property, your first mission should be finding reliable representation that will guide you to the closing table. If you do not work in the real estate industry and understand the pitfalls buyers and sellers can fall into, then you should work with a professional who has been through the highs and lows of the market. This will bring confidence and clarity to your transaction, allowing you to focus on your day-to-day life.
Let’s talk about the basics
An agent versus a broker
A real estate agent has a license that allows them to represent both buyers and sellers in their real estate transactions. This license allows them to negotiate and present offers, and they can collect a commission from their clients. A broker has the same abilities as the agent, with the added ability to hire other agents or work independently. This allows the broker to collect their own commission as well as a percentage of other agents’ commissions that work underneath them.
A realtor versus a real estate agent
Many people do not understand that real estate agents and realtors are not interchangeable. While realtors are real estate agents, not every real estate agent is a realtor. In addition to being licensed, a realtor is a member of the National Association of Realtors, which ensures that members follow strict ethical guidelines. Brokers and agents alike can be realtors, but not all of them take the additional steps.
Listing agent versus buyers agent
The listing agent will help the seller list and market their home, while the buyer's agent represents potential home buyers who are scouring the market. Knowing the difference can save you some confusion, and as you look at different agents' experience and credentials, you can determine if their real estate background would be ideal for your needs.
Finding a real estate agent
Ask about their experience
As you look for an agent, you must keep in mind that you do not have to settle with the first agent you interview. Meet with a couple of agents and see who is most prepared for the appointment, and be picky when it comes to communication style. If you are selling your home, see which agents bring a comparative market analysis to bolster their opinion of your property. If you are on the hunt for a home, see which agents try to understand your needs from both a financial and practical standpoint.
Determine if they work alone or on a team
While some agents work solo, others work on a team, which can consist of multiple agents, a broker, and sometimes transaction coordinators. Depending on your needs, you may want a team of professionals backing you up, while others want to hire one person who will know all the details of their transaction.
Determine their commission expectations
Another important detail when hiring an agent is agreeing on their commission percentage. Agents are paid by the home seller, not the homebuyer. While some agents are accustomed to 3% of the sales price, others could be more flexible and come down to 2.5%. Agents only make money when a transaction closes, and once the agent has made an effort to get you to the closing table, you will see all that goes into earning a commission.
Find reviews and referrals from past clients
You should consider several agents’ professional histories and client reviews before hiring anyone. A good or bad review can make or break your decision, and nothing is better than a first-hand account of working with a real estate agent. Sometimes, clients have unrealistic expectations from the beginning, but reviews that point to poor communication or clumsy negotiating can help you steer clear of unreliable agents.
Good qualities in a buyer’s agent
They show you homes in your price range
A marker for a great buying agent will be whether the homes they present to you are both in your price range and have your desired specifications. If your price range and expectations are unrealistic, they should explain why early on so that you are satisfied with their efforts.
They negotiate to protect your interests
Your agent should let you know when a sales price is too high, and they should work quickly to secure a property when you have found a great deal. If there is room for negotiations, the right agent will be confident to take that on and use research to defend your offer.
They set realistic expectations as you look for a home
In terms of availability and competition, your agent should be working swiftly to get you into your dream home without getting your hopes up with unrealistic expectations. The real estate market has recently been in the seller’s favor, and your agent should not let you get caught up in the homebuying frenzy. With inventory not meeting demand, buyers need to be careful not to overpay for a home and ultimately not see that money back when it comes time to sell.
Good qualities in a seller’s agent
They are adept at marketing your home
When you meet with listing agents, you should discuss how they would market your home. In most cases, the price point you are selling at will directly affect the efforts needed to market the property. Typically, agents marketing high-value properties opt for professional staging and photography to illustrate the home's glamour. From virtual staging to virtual tours, your agent should also be up to date on the latest marketing strategies.
They offer tips on what to improve before listing your home
Before you put your home on the market, your agent should be able to point out areas that might need some TLC before potential buyers begin touring. Fixing any problems with your home now will save time during negotiations and keep you from holding up a closing or losing a potential buyer.
They suggest a realistic sales price for your home
As you discuss your property with different agents, ask what they would list your home for and request research that backs up their number. The right agent will be prepared for the question and have already done a comparative market analysis to determine an appropriate sales price.
They compare your home to others that have sold in the area
In keeping with determining a fair sales price, your agent should have compared your house to others that have sold recently in the same area. Taking into account the square footage and quality of your home, they should arrive at a number that will set your sale up for success.
Are you looking for an agent?
As you consider the Colorado homes for sale, you will want to find representation that will work tirelessly to close your transaction. From the Denver houses for sale to Colorado Springs real estate, Pink Realty has you covered and will ensure your needs are met. Contact one of our agents today to get started on your real estate journey.
*Header photo Courtesy of Pink Realty
