Benefits of Getting A Real Estate Agent
Are you looking to sell your home?
Or buy a new dream home to settle down in?
Whether you’re jumping into the property game or looking to exit, the services of a real estate agent can make all the difference.
It is not an easy task obtaining a list of prices of properties sold or bought for your local neighbourhood. Not to mention the inside knowledge that is required to secure a property at the best possible price. Still, possessing the right information is crucial in the property business which makes a real estate agent incredibly valuable.
Getting the right real estate agent for you could save you valuable time and most certainly make a better investment decision.
So if you’re searching for the right real estate, here’s what you need to know.
1 – They know when the market is right
When investing there is never an ideal real estate market.
We all know that if a market environment is rising in prices then the probability of selling for
higher profits increases, but who knows the market trends?
Your real estate agent.
Real estate professionals are able to tap into the latest market changes and help you secure or sell a property to take advantage of these fluctuations. In the same way, the right real estate can help you secure a financial advantage, real estate agents also tend to know when property values are falling – which means being there to snatch up a real bargain.
In rising markets, it becomes harder to find bargains if participants are interested in selling their property quickly for a large profit. In contrast, when property prices are falling more bargains become available. Real estate agents possess insider information generally unavailable to the public, so their knowledge pays off.
Benefit #2 – They have experience
According to the experts from Glen Gilbertson Floor Sanding, who work with property and see first hand the importance of real estate agents, “real estate agents may come with a negative stereotype, but their experience can’t be matched. When making an investment of a considerable financial nature, you need someone who can help navigate the challenges that you’re not accustomed to. In this regard, you really can’t put a price on experience.”
It’s easy to think you may know enough about dealing with property, but is it really worth the risk if you end up paying overs for your new property?
Or worse, end up missing out on your dream property in the first place. It is often best to leave the task to professionals who actually know what they are doing.
Real estate investors can help you interpret market indicators such as the average length of time houses have been on the market this month versus last month; or last year. With this information, you can make better investment decisions.
Benefit #3 – They have a team working with them
When working with a real estate agent, you’re also working with their entire professional team and network.
Here are the top four benefits that come with having a team working alongside you.
– Real Estate Agents have a track record of success – Real Estate Agents are already working with buyers in your area – Real Estate Agents have excellent communication and negotiation skills – Real Estate Agents are experienced marketers in fast and slow markets.
So, which real estate agent should I choose?
Scenario 1: Don’t Overpay!
The purpose of investing in real estate is to discover properties that are valued less than they actually are.
One may ask, how does one differentiate between overvalued and undervalued? Without getting too snobby, or into the technical details, the bottom crunch is that you need experience and knowledge.
Just like when buying a car, or purchasing anything else, real estate is most likely one of the highest cost items in the centre of one’s life. And given some research, and asking the right questions, it is likely you will finally feel the right vibe of the market that you seek, and obviously, identify what is considered an excellent buy – thanks to a trustworthy real estate agent.
Scenario 2: Know Your Area!
How does one make money in real estate? The goal is to sell high and buy low.
So, from this first step, you have now identified general trends in the value of homes & property, and you are already pretty good at spotting undervalued homes. If you are able to own the house, you will then want to profit from it by selling it to somebody else at a higher price.
How can you do this, you may ask?
There are many ways. For starters, most markets appreciate in value over time, so any information on speculative trends solicited by the government, or your favourite real estate guru, you still will undoubtedly need to adopt a long-term strategy.
Bottom line is, think in terms of what the market wants, not what you want. You’re not the one buying it; you are the one trying it to sell to someone else for a higher profit.
Scenario 3: Know Your Budget
Real estate is a very serious business that requires diligent financial budgeting and planning – which is crucial to your success.
Discipline, knowing your budget limitations, and a degree of decency is necessary. Otherwise, you may find yourself in a situation where you did not anticipate going over a certain cost.
Knowing how much you have to play within your budget is important to ensure you and your real estate agent are aligned and working along with the same vision.
You made a purchase, now what?
Ok, now we find you in a situation that you purchased some real estate to profit from reselling it – you are in good company we hope. According to the renovation and glazier team at Mark Rogerson Glass, “as many as 25% of purchases are made by those who plan on using the property for investment purposes only. Which means added costs must be factored in to cover the renovations. This will impact your ability to turn a profit.”
If your intention is to ‘flip’ the asset, there are four things you must be aware that can hinder
1) Property Taxes.
Some hot real estate markets have seen taxes nearly double in just 5 or 6 years.
2) Renovation Expenses.
Once your project is complete will you be able to recover the expenses and make a profit if the value of your renovated property is above those in your neighbourhood? Are you able to handle market ‘valuation corrections’?
3) Insurance and Mortgage Costs.
You will pay more for homeowners’ insurance if you do not occupy the residence and you have tenants. Mortgage rates could fluctuate in certain ‘conditions’.
According to the property and equity experts at Maxiron, “whatever your course of action becomes, whether to venture into property solo, or attain the assistance of a professional, it is important for you to realise that 97% of listings represented by real estate agents are sold for the initial asking price. Which means a professional touch can help drive dividends when it comes time to sell”
Now that’s talking dollars and sense.