the benefits of not paying real estate agent commissions. It works like this: An owner selling on his own (FSBO) will price the house based on the sale prices of other comparable properties in the area. Many of these properties will be sold with the help of an agent; therefore, the seller profits in getting to keep the percentage of the home’s sale price that might otherwise be paid to the real estate agent (usually 6%). Buyers looking to purchase a home sold by the owner without an agent may believe they can save money on the home by not having an agent involved, so they look solely at FSBO houses. They might expect money to be saved and make an offer accordingly. Unless the buyer and seller agree to split the savings, they can’t both save the commission — and that’s if the listing price was not already lowered by near the commission amount to make it more market-attractive. Here’s a shortlist of the advantages that using a real estate agent can bring to your buying experience:
• Education and experience • Neighborhood knowledge • Price guidance
• Information on market conditions • Negotiation skills and confidentiality • The ability to handle the paperwork • The ability to handle closing questions • Relationships for Future Business
It’s extremely important to know your real estate agent before you bring one along with you to help in your search for a home, just so that you know what to expect and what will be expected of you.
WHO A REAL ESTATE AGENT IS GENT IS 5
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