WHY DO I NEED AN AGENT ANYWAY
WHY DO I NEED AN AGENT, ANYWAY?
For one, real estate agents do this full-time; it’s not something an agent does once every seven or eight years or so, typically the life cycle of owning a particular home. Real estate agents know the background of the neighborhood, appreciation, schools, and when homes are overpriced or when a home is a great bargain. Real estate agents are professionals and it doesn’t cost you anything to tap into that knowledge.
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Real estate agents work on a commission. When a homeowner decides it’s time to sell, or is at least thinking about it, they’ll contact a good real estate agent who will then prepare a Comparative Market Analysis, or CMA. The CMA is a report that pulls up recent sales in the area. This provides the agent with the data he or she needs to determine how long it will take to sell the home and how much it will sell for.
In return, the agent charges a commission payable when the home actually closes. The amount of the sales commission varies by locale but a 5 percent or 6 percent commission is common. When the agent who lists the home finds a buyer for that property, the agent gets the entire commission. However, when another real estate agent brings a buyer to the deal, the commission is split between both agents. In essence, it is the property owner who pays your real estate agent—you don’t. Essentially, it’s a free service. Can you think of any other industry where the professional works at no charge to you?