Why Use An Agent

Security and trust operations

First of all, we need to clarify a very important point.

Buyer and seller, are on opposite sides in the negotiation in the sale of a property. While one wants to get the highest possible profit, the other wants to lower the price in an exaggerated way. But they both have one point in common, they want to close a sale as soon as possible.

At this point, the figure of a real estate agent can help both parties to expedite the operation, although the reasons between them may be different. Now, the terms with which we refer to them may be of little importance, but if you are interested in knowing the differences, we will explain them to you below.

We start with the fact that all real estate sellers are agents. They are authorized to represent the buying or selling parties in real estate transactions. However, there are three types of agents:

  • Agents who have no professional training or membership in any professional association.
  • Those known as brokers are usually a little more professional and have some training, but they are still a type of agent.
  • And finally, we find the figure that all owners should want to work with, the real estate agent, who has excellent professional training, knows the real estate sector perfectly well, and belongs to one or more professional associations.

Sometimes we fall into the bad habit of calling all agents Realtors, although that is totally wrong. While it is true that all Realtors are agents, it is also true that not all agents are Realtors.

Real Estate Development Process

It’s All About the Money…

If you are selling your property, it is logical that you want to get the most money for it, and that seems like a good reason not to hire the services of a real estate agent. However, you should know that a study conducted in 2017, reveals that the properties for direct sale by the owner, sell 30% less than the properties listed by real estate agents, and possibly, end up making a reduction in the final price.

In addition, it is very likely that you will still have to pay a commission if the buying party is represented by a real estate agent, and we can be sure that this point will be a key part of the negotiation.

On the other hand, if you want to buy a property, why don’t you hire the services of a real estate agent? After all, the commission will be paid by the seller, so you will be advised and represented by a real estate professional and that does not generate any cost for you.

Privacy and Confidentiality...

Whether you are a buyer or a seller, the real estate agent will look after your interests.

As real estate agents, we are legally obliged to put the interests of our clients before any other circumstances that may arise during the process of buying or selling a property.

During the negotiation process it is very common for the buying party to request information that can be considered confidential but that is essential to be able to demonstrate, for example, legal ownership, no debts or liens, etc.

Would you feel comfortable giving that information to someone who does not have a confidentiality obligation to you?

Or, in the case of a buyer, would you feel comfortable giving your personal financial statements to someone who does not have an obligation to maintain absolute confidentiality with such sensitive documentation?

Finally, your real estate agent will know perfectly well if the documentation that the other party may be requesting is consistent or not with the negotiation that exists.

If during the negotiation of the purchase of a property, the real estate agent of the seller has lied to you, you have the right to report it to the professional association of the real estate agent, although as we said at the beginning, this means that the seller of the property has hired the services of a real estate agent, and this means that if it had been a direct sale of the owner, there would be no option to complain to any professional association.

Real Estate Development Process

They see what you don't see...

You are most likely not familiar with all the legal documentation involved in buying or selling a property and it is very important to be fully aware of the importance of understanding every point of the agreement, regardless of whether you are the buyer or the seller.

Real estate purchase contracts can have more than 14 pages of clauses and obligations, and a long series of local, state and federal legal documents.

In addition, if you are a foreigner buying in a restricted zone in Mexico, you will need to hire a trust, which adds another set of very important contracts and documents that you should be aware of.

This is where the participation of a real estate agent is as important as, if not more so, in the negotiation, since we are much more familiar with all these procedures and documents. Keep in mind that, a mistake in some contract, management or document, can be as expensive as that commission you did not want to pay, or even much more.

We realtors know where to look...

Usually, buyers have a clear idea of what type of property they are looking for, whether it is a house or an apartment, the number of rooms, whether they want a garage or a garden, or any other details that may be important for making a decision. It is very easy and fun to look at properties on the internet and find options that suit you.

But we real estate agents see things that the buyer doesn’t usually see, such as the state of the electrical installations, maintenance of the pool motors, insect pests and windows in poor condition.

Our experience in reviewing the red flags of a property can bring new deals to the table in a negotiation and can certainly save you a great deal of money on repairs and maintenance in the future.

If you are selling your property, you have set a sales price, but… how did you get that price?

There are several factors that influence an owner when setting a sales price, and one of the most common is sentimental value, but that is a big mistake. A real estate agent will be able to offer you a correct market price based on an analysis of the area and similar properties that are for sale and those that have been sold in the previous 12 months.

A real estate agent can provide you with a detailed and real study of the area where you want to buy a property, taking into account such important aspects as hospital services, transport, supermarkets, crime rates and other decisive factors that, if you have to investigate on your own, will take much longer.

Real Estate Development Process

Real estate agents are the best negotiators...

You may well be a skilled negotiator if you are a lawyer, sales manager or purchasing director of a company… Or if you are a real estate agent. Remember the real estate agent’s legal obligation to put your interests first. It is a real estate agent’s ethical and professional obligation to get the best possible price for your property or to make sure you get the best deal when buying your home.

Real estate agents are skilled negotiators, both in terms of professionalism and, above all, experience. Many have proven techniques over many years and also their small personal details. But one of the things we don’t have, and sometimes it’s very important when negotiating, is a moral self-interest in the final negotiation, something that can sometimes make us make bad decisions.

You might be willing to pay a little more for that property, without really being necessary, since the real estate agent has already seen weaknesses in negotiating and making you save that money and enjoy it in other things.

Under what conditions can I buy a property ``without`` a real estate agent?

Some people try to buy a house without the help of a real estate agent. This is an absolutely risky act in which you could dissipate thousands of dollars overnight. Buying a home without a real estate agent requires that you be well equipped with the information of the process related to the purchase of the property and the complexities of the road. You can do this on your own, if and only if you have compelling reasons to do so, or if you have the confidence to handle the negotiation alone.

Good advice for you trying to buy a home without the help of a real estate agent is to do so for one of these specific reasons:

You know the property owner well as if he or she were your trusted friend or relative.
There is only one property to buy on your list and you know almost exactly how much it is worth.
You have bought many properties before and you know well how the process works.
The house is labeled FSBO (explained above) and the seller is not willing to pay the commission for the agent.

Henry Ford has a famous saying. In short, he explains that if you are going to prove that you are smarter than them, hire people who are smarter than you. You don’t have to do all the work yourself. Surround yourself with people who know more than you do and the job is done. Find the right real estate agent if you want your money spent correctly on a home that meets your requirements, and you will land safely.