Before we look at the benefits of using a real estate agent, let's take a minute to define the players:
A real estate "agent" is tested and licensed by the state;
a "broker" has taken an additional test, and is authorized to operate a private real estate firm;
a "REALTOR®" is a licensed professional and a member of the National Association of REALTORS®. Finally, a "listing agent" refers to the real estate agent a seller hires to place a home on the market. For the sake of simplicity, we'll use the term "agent" as a general reference to any of the above.
Benefits of using an agent.
- Agents know the market and can help you determine the right price for your home
- Agents have a vested interest (commission) in selling your home for the highest amount possible
- They have far greater resources than you for locating buyers and steering them to your home, such as the Multiple Listing Service (MLS) and "comp books," which list recent sale prices of homes similar to yours in your neighborhood—the key determiner of your home's worth
- Agents can advertise your home in classified ads and real estate magazines
- They make sure in advance that prospective buyers are financially able to buy your home
- Agents aren't emotionally invested in your home, so they can keep cool, level heads during the negotiating process
- They save you valuable time, working many hours behind the scenes for every hour they're in your presence.
Wait, there's a third option.
Still can't make up your mind? You can always take the middle road by using a discount real estate broker for specific services. For a flat fee or hourly rate, a discount broker will handle such duties as writing a classified newspaper ad, listing the property in MLS or holding an open house.