DIY Real Estate Agent, Yes or No.

You can DIY a new bookshelf, a shed for your backyard, or even your kids’ Halloween costumes. But should you try to DIY your home buying experience? According to the National Association of Realtors (NAR), only 11 percent of homebuyers chose to purchase a home without a real estate agent in 2019. The benefits you get when you work with a real estate agent far outweigh the time and money it takes to list and buy on your own. Let’s break it down.

Market Knowledge

When you work with a real estate agent, you’re getting more than just an agent; you get a marketer, advisor, and expert on local neighborhoods. You can read all the online resources in the world and become an expert on your purchase, but an agent will come with the right knowledge to avoid potential roadblocks and get you the best deal possible. Not to mention, your agent will have an in-depth understanding of current market trends and have access to resources that the average home buyer doesn’t.

Another upside to working with an agent is that you’re still in the driver’s seat! As the buyer (and sometimes seller), you have the power to choose the right real estate agent for you. Ask questions, talk to references, and take the time to find someone who can communicate well and knows your long-term goals. Keep in mind that there is a difference between a real estate agent and a Realtor.

A real estate agent is a professional who has obtained a real estate license to assist in the buying and selling of properties. In some cases, agents will have a specific focus, either listing or buying. On the other hand, a Realtor is a real estate agent who is also an active member of the National Association of Realtors (NAR).  Agents within this organization are required to adhere to an extensive Code of Ethics, which can be an attractive quality to buyers who want to know the agent they’re working with has their best interest in mind.

Time Saved

As a homebuyer, there’s more to the process than shopping for homes. You’ll need to meet with a licensed lender to obtain financing, coordinate times to see multiple homes within your budget, make an offer, schedule appraisals, negotiate repairs after the home inspection, and so much more.

Thankfully, a real estate agent acts as your command central when it comes to checking off all the boxes needed to go from thinking about buying to moving day. Homeowners who find an agent that can act as both the listing and the selling agent can also eliminate the additional stress of communicating between two parties.

Money Spent, Money Earned

Speaking of sellers, a 2019 NAR study revealed that of all the “For Sale by Owners,” or FSBO sellers, 63 percent of sellers who didn’t know their buyers only chose to go without a real estate agent to avoid paying a commission.

In theory, skipping out on the average 6 percent commission costs of using an agent appears to be a savvy financial move. However, NAR also found that FSBO sellers sold for a national average of $200,000 in 2019. Agent-assisted buyers, on the other hand, sold for an average of $280,000. A 6 percent commission on a home sold for $280,000 home is only $16,800. When you do the math, FSBO sellers may be leaving more money on the table than those who choose to use a listing agent.

Avoiding Legal Issues

When you choose not to work with an agent, you also lose the advice and representation of a seasoned professional. Using incorrect paperwork can lead to lead to legal issues and misrepresentation later on down the road. One alternative to using an agent is to hire a Real Estate Attorney to draft the legally binding paperwork. This option, however, still leaves the buyer and seller to handle the title and escrow process on their own.

The Bottom Line

When it comes time for you to buy, sell, or do both, we recommend working with an experienced and knowledgeable real estate agent. It’s essential to do your research and find the best agent for your needs.

Are you thinking about purchasing a home? Contact us today for more information about financing and local recommendations for agents we trust!

Benefits Of Selling During The Holiday

Each year, the holiday season seems to arrive quicker and quicker. Now that we’re officially in October, it’s time to start thinking about what the holiday market looks like.

Are you considering selling your home soon? There’s no denying that spring is one of the best times to sell your home, but there are also benefits to selling during an off-peak season. Let’s break down the benefits of selling in the last few months of the year and look at tips to get your home off the market faster.

The Benefits

Shopping, and baking, and houseguests… oh my. As busy as your holiday season can be, it may be worth it to take a year off from decking the halls to sell your home.

There’s less competition is cooler months. A large reason for seller success in the springtime is due to the warming temperatures and longer days. Both of these benefits actually create a very competitive market, so sellers listing in the cooler months will find fewer homes to compete with.

Buyers are more serious. In the spring and summer, buyers tend to shop without a clear plan to purchase because they know their options are plentiful. During the holidays, on the other hand, buyers are less likely to waste their already limited time browsing multiple homes.

Transfers are looking for housing. As the end of the year draws near, employees who need to transfer to a new city, or even a new state, will be home shopping through the holidays. These homebuyers don’t have time to wait until the spring, so time is on your side in this scenario.

Your neighborhood is decorated. With Thanksgiving just a few weeks away and Christmas shortly after that, homes in your neighborhood will be adorned with plenty of pumpkins, and later, Christmas lights or decorations. As buyers drive by, they will have the chance to experience what their own holiday festivities will look like in the upcoming year. You can also make your home festive on the inside with warm scents and colors that are welcoming to visitors.

Holiday Selling Tips

Are you ready to take the leap and sell your home? Selling in the last few months of the year can be tricky, but we have a few tips to make the process easier.

 Get your finances in order. No matter what time of the year you sell, you’ll need a trusted lender to guide you through the home loan process.

Hire a reliable real estate agent. Your agent will be just as busy, if not busier than you are as they juggle the holidays on top of selling your home. Ask around, read online reviews, or ask your Mortgage Advisor to recommend an agent that will take the time you need to sell your home. We know all the top agents in Tucson.

Seek out, motivated buyers. Request that your Realtor find buyers or investors on specific deadlines to buy if you’re also on a deadline to sell. College students and military personnel are two more recommended groups that sellers target during October through December.

It might also be beneficial to price your home to sell, right off the bat. Rather than slowly dropping the price, list your home at a reasonable price from the get-go.

Decorate… to an extent. Curb appeal should be a top priority of buyers during winter months. This means clearing out dead plants, raking leaves, and keeping gutters cleaned out. On top of yard maintenance, minimal outdoor decorations are welcome. For example, single-colored string lights and door wreaths. Large blow-up displays or overwhelming lights could distract buyers from the house itself.

This rule goes for inside the home as well. By all means, embrace the holiday spirit and decorate, but don’t clutter shelves and walls past the point of enjoyment for potential buyers. Their main focus should still be on the home, rather than your festive display.

Have photos taken of your home? When the cold winds start blowing, no one wants to begin their home shopping journey outside. Listing your home with professional photos will allow buyers to get a good idea of what your home features before ever stepping inside.

Could this holiday season be the time you decide to sell? Contact The Polder Group at Summit Funding Your Real Estate Experts to learn more.