If you are considering buying or selling your home this is a big financial decision. Minimizing your costs should be your number one priority in order to maximum the potential. Real estate can be a complicated process and although there are risks involved, it can be a worth while investment. Whether you are selling commercial real estate or residential, there are a few things that you should be aware of.
Broker Fees
A real estate agent or broker is typically used by most homeowners when selling their home or business. Real estate management companies usually work on commission their agents only get paid once the place has sold. Because of this, an agent will work very hard to make the sale.
Generally speaking, commission to a real estate agent is six percent. The listing agent and the buyer agent have to split this. Sometimes they receive even less than the 6 percent, after it goes through the listening brokerage. It’s not uncommon for an agent to only receive between 60 and 90 percent of the six percent. Never hire a broker without first looking into them. You want to make sure that the agent you are using has a good history. Even if the real estate investments companies themselves have a good reputation, the agent specifically is who you want to look into. If they have a good track record, the option of paying a premium might be worth it.
Here are a few tips to follow when looking into hiring a broker agent from real estate investing companies.
- Unless you are working with top real estate developers, you have the option to negotiate commission.
- If you are placing a bid on a house, don’t let on how much you are actually willing to pay. If the agent is trying to get a higher commission, they may tell the sellers you can pay the higher amount.
- It’s okay to be suspicious of an inspector list that has been provided to you by the agent. If they have interests that don’t benefit you there’s a chance that will cover up some of the damages in the home. The agent could just want the commission and in the inspector only be interested in further business from the agent.
You don’t have to use an agent. If you prefer to sell your home on your own, you can hire independent appraisers and such to make sure you are selling for the right price. If you choose not to hire an agent, you will face some challenges along the way and it may take longer but in the end you will save a large amount of money.
Buying and selling a home is one of the most major financial decisions that a person could potentially make in their lifetime. Knowing how to find a real estate agent to help you that is trustworthy and reliable is very important. You don’t want to end up getting the wrong end of the stick. The best way to find an agent is through word of mouth. If you know someone that has bought or sold a house and is happy with their agent, you probably will have some luck going through the same person. The great thing about word of mouth, is that if the agent has provided honest and beneficial services for your friend, once you tell them who referred you, they will be obligated to provide you with the same level of service. This ensures future business from the friend as well as from you. If they do not, they know they could potentially lose your business, your friend’s and further referrals from either of you.
There are great agents out there you just need to know what you are looking for. Here are some traits every agent should have:
- Effective communication skills
- Leadership qualities
- Resources at their disposal
- Knowledge
- A willingness to act and be proactive
- Good track record
- Good reviews
You can think of reviews much like a referral and let the agent know the reason you are going to try them out is because of certain reviews. This will give them a chance to match those reviews or exceed them, in your mind. You should also leave a good review for them if everything goes well!
