Real Estate Services – 5 Useful Tips on How to Find a Good Realtor
Today we will study a relevant and interesting topic – real estate services. Anyone may need the help of an intermediary in buying, selling, or renting housing. It is worth knowing in advance what the services of a realtor are and why they are needed at all.
In this article, I will share my personal experience.
And now – about everything in order!
What is a Real Estate Service?
Every day in the country, thousands of properties are bought, sold and leased. Most buyers, sellers and renters operate through intermediaries. Do-it-yourself real estate transactions are troublesome, risky and often unsuccessful.
For this reason, people use real estate services. Real estate professionals help to sell a home quickly, without cheating and on favorable terms for the tenant.
A Realtor is a specialist who helps to buy, sell or rent an apartment, house or commercial facility. Realtors are sometimes referred to as real estate agents.
The intermediary not only selects the most suitable options for the customer, but also accompanies the real estate transaction until the stage of its completion. Thus, it is not only a successful home seller, but also an expert in legal and financial matters.
Sometimes the word “realtor” is understood not as a specific person, but as a whole real estate agency – an organization that acts as a mediator or consultant in real estate transactions. For their services, realtors receive an intermediary percentage or a fixed payment.
You can find all the details about the work and functions of a real estate agency in the corresponding publication.
The professional responsibilities of intermediaries are quite extensive:
- Selection of real estate options for the buyer in accordance with his requests and wishes.
- Analysis and verification of documents of the selected object.
- Negotiating with the seller in order to achieve more favorable conditions.
- Compliance with the legal purity of the transaction.
- Transfer of prepayment.
- Documentary registration of the purchase/sale transaction.
- Organization of mutual settlements.
- Transfer of housing to a new owner.
- advertising and competent presentation of an object when selling a home.
- Search for buyers and a demonstration of the sold apartment.
It happens that a realtor acts simultaneously on behalf of the seller and the buyer. In this case, he conducts 2 transactions at once and receives a double fee.
The services of a realtor are needed when you want to sell a home, buy or rent an apartment, sell commercial real estate. Today, only a few works without intermediaries: attracting realtors is a more civilized and reliable way to sell or purchase housing.
How much does a Realtor’s Services Cost – An Overview of Factors affecting the Cost
Real estate services are provided by large and small real estate agencies. There are also private realtors – independent specialists working for themselves in the IP format.
For their work, intermediaries receive a commission, which is calculated on the amount of the transaction. There is usually no specific rate or it is minimal. Realtors working for the agency receive 25-75% of the fee for their work, depending on their level.
Accordingly, a solo realtor takes all the profit for himself, but at the same time performs a greater amount of work, since no one provides him with legal or information support.
There are narrow specialists working in certain niches. Such realtors will help, for example, buy commercial real estate or rent housing for students.
Let’s consider in detail the main factors affecting the cost of real estate services.
Factor 1. Object Price
Obviously, the higher the cost of an object, the more difficult it is to find a buyer for it. The realtor, of course, has access to databases of sellers and buyers for all categories of housing, but the success of the transaction does not depend only on the availability of information.
It depends on the ability of the mediator to present the object favorably, to emphasize its merits and hide its flaws. The intermediary’s commission is calculated depending on the transaction amount.
Read the article “Elite Real Estate” about the peculiarities of transactions with expensive real estate.
Factor 2. Object Liquidity
Such factors as the timing of the search for buyers, the complexity, or vice versa, the ease of paperwork, depend on the parameters of housing.
Factor 3. The List of Services provided by the Realtor
If the transaction is simple – for example, only the purchase of a specific object, the cost of services is calculated at a minimum. But when it is necessary to carry out additional work – say, to organize advertising or to select several options for the buyer, the price rises.
If a realtor is engaged in renting residential premises, then the commission is charged in the amount of 50-100% of the monthly rental cost.
There are some nuances of calculations when renting commercial premises. Such transactions are more complex in legal terms, which mean that the cost of intermediary services will be higher.
Factor 4. Type of Payment
The average rate of a realtor in buy/sell transactions ranges from 2% to 7%. Very complex transactions are sometimes estimated by specialists at 10% commission.
Less commonly, intermediaries work for a fixed rate. As a rule, such fees are received by newcomers and trainees in real estate agencies.
In the table, the influence of factors on the cost of services is presented more clearly:
|No.||Factors||Impact on the Cost of Services|
|1||Housing price||The more expensive the object, the higher the commission|
|2||Object liquidity||It is easier to sell liquid housing, which means that the percentage of the intermediary will be less|
|3||Workload||Complex transactions with legal support are rated higher|
|4||Payment||Experienced realtors work for interest, interns – for a fixed fee|
How to Find a Good Realtor – 5 Useful Tips
Those who have not previously sold, bought or leased real estate do not understand all the features and nuances of such operations. Therefore, newcomers to housing transactions are trying to save money on intermediary services.
They organize themselves or hire inexperienced agents who work at minimal rates. More often, this approach does not justify itself and even works in the negative.
Even if you just need to rent an apartment for a long time, it is worth attracting an experienced realtor for cooperation. Yes, his services cost money, but the intermediary will choose not the first one that comes across, but the most profitable option in the long term.
And now tips on how to find a reliable and honest realtor.
Tip 1. Refuse to Cooperate with Single Realtors
There are plenty of lay workers in the housing market. However, agencies that value their reputation do not keep realtors working on the principle of “maybe it will blow.” Such employees are dismissed, after which they leave “on a free float.”
Choosing a “lone ranger”, you buy a pig in a poke. The track record of such a specialist may turn out to be fake, and the reputation – fiction.
In agencies, however, each employee must be checked for aptitude. And the lists of closed deals here are usually genuine.
Tip 2. Choose a company that has long been represented in the service market
Obviously, an experienced company is preferable to a company that opened a month ago. If an agency has been operating on the market for 10-20 years, it means that it has successfully overcome all the waves of economic crises and remained afloat thanks to the correct policy of the management.
But remember that a large agency is not necessarily a good agency. And intrusive advertising of a company on every corner is not yet an indicator of the quality of services. Large organizations often attract newcomers who have zero experience in real estate transactions.
Tip 3. Carefully Study Customer Reviews
How to check the professionalism of a realtor? First of all, it is worth studying the reviews about the employee on the company’s website and on special forums.
Please note that people write negative reviews more readily than laudatory ones. So if you come across one unhappy customer in ten satisfied customers, it’s more a positive result than a negative one. So you should always keep the focus on the customer experience.
Tip 4. Analyze the professionalism of the realtor at the meeting
A face-to-face meeting will tell you more than all the reviews put together. Already from a few sentences, it is clear who practices honest and business relations, and who makes promises that are not supported by real facts.
By the way, the age of an employee is not yet evidence of his professionalism. Realtors take people up to 50 years old: it may turn out that an employee who is much older than you is just an intern who has not closed a single deal.
An experienced specialist can be considered a specialist who has successfully closed at least 20-30 purchase / sale transactions. Attention should also be paid to the number of projects that the realtor is currently conducting. A professional is always in demand: at the same time he can deal with 3-5 cases without compromising quality.
Tip 5. Listen to the opinions of friends and acquaintances
Friends will not mislead you and praise the agent they are unhappy with.
Ideally, a good realtor, as a family doctor, should be looked for precisely on the recommendations of people you know personally.