By Tayo Oke
There are many buyers who find it challenging to pay real estate agents for the various services that they render, especially when it comes to selling or buying properties. When a real estate agent is engaged to render these services, an integral part of the negotiation is payment of commission.
Some clients do not want to pay fees, while some would like to pay as little as possible. Rather than go into the merit or demerit of the argument of those who believe that a real estate agent does not deserve the fees charged, let’s look at the possibility of such individuals doing the work personally.
There is currently no law that says that a seller must use a real estate agent when he or she wants to sell a property. Real estate agents or other professionals engaged for the purpose of buying or selling properties are a form of intermediaries and you can choose to do away with them.
This puts you in charge of the entire transaction and removes the need to pay legal or agency fees. This could save you thousands if not millions depending on the value of the property.
If you choose to go through this do-it-yourself route, you must be prepared to do what your real estate agent would have done. You must be ready to advertise the property to as many people as possible using various platforms.
Technology and social media have made this simpler but not necessarily easier. There are several platforms that are used by real estate agents to advertise and each of them has different level of effectiveness. You will need to select the ones that you will use and allocate some funds for that purpose.
In addition to advertising the property, you must be prepared to sacrifice some of your privacy and free times. When you advertise a property, you need to make a contact number available that interested persons can use to reach you. The calls you are going to receive will mostly be from agents acting for buyers and sometimes from the buyers themselves.
They will make enquiries regarding your title and other issues. Almost all the calls will relate to the least price you are prepared to accept. Most of those interested will also request for an appointment to inspect the property. If it’s a tenanted property, then you will need to inform the tenants ahead and manage the entire process. If it’s the property that you live in, then you must be prepared to welcome different individuals into your home.
Being your own agent also comes with the additional pressure of you entering negotiations with different professionals who are likely more experienced than you in real estate investment.
Some experienced buyers like dealing directly with sellers because they are at a better advantage. They can easily put more pressure on them regarding price and sometimes negotiate a better deal which might not be possible if the transaction was being handled by a professional. They might be opportune to secure flexible payment terms.
However, if you consider the above process overwhelming or stressful you are right to think so because they are the reasons real estate agents and professionals charge so much in fees or commissions. They come into each transaction with years of experience and street sense which enable them to market better, negotiate better and shield you from the stressful aspect of their job. In order to sell your property faster, real estate agents often tap into their numerous networks of friends, colleagues and former clients to market your property.
This database of contacts is often more effective than several newspaper advertisements.
Even if you consider the above secondary, it might interest you to note that many sellers enjoy better advantages when they have an intermediary between them and the buyer. It allows for time to consult and make appropriate responses to offers received from interested buyers.
Real estate agents and professionals act as a filter that screens out enquiries that are not likely to result in a sale. Experienced real estate professionals will only schedule meetings when they are sure they have a buyer that appears interested enough to pay. This process protects your privacy and delivers you from time wasters. In all, before you choose to become your own real estate agent, count the cost and if you now understand the value of real estate professionals ensure that you pay them whatever you have agreed to pay them.