There have been many recent changes in the trends following local home buying and selling in the Los Gatos, Bay Area real estate market. With the market booming, some people might consider whether a real estate agent will be more beneficial for the deal or if they should forgo the expert representation, and save themselves the commision by self-representing in a direct buy. Yes, doing the job on your own can minimize your expenditure by saving the amount to be paid as commission to the agents. But, if we view the same thing over a long period of time, this step might end up costing you more than the 2-3% the agent commission may have been. Selling or buying a property is one of the most important financial decisions one will make. Aso deciding to hire a local Los Gatos real estate agent is an important decision that shouldn’t be taken lightly.
Handling contracts can be difficult: When you plan to sell or buy a property, a legal contract gives you an assurance that the right terms and conditions will be covered. If your contract terms are not met, you have the right to back out of the deal. The contract, therefore, protects you from signing a bad deal.
For instance, if you are purchasing a property with a mortgage, and your mortgage is still not approved by the banking officials and adding financing condition into the contract was missed, you can find yourself in trouble. There might be a chance that the seller may sue you for breaching the contract, and you might end up losing the deposit.
An experienced real estate agent is qualified enough to deal with all the terms and conditions mentioned in the contract on a daily basis; he or she knows how can they be removed and how to use the language in the contract to protect you from an unexpected issue.
Saving money is not everybody’s cup of tea: Most of the people avoid hiring a real estate agent to save some hard-earned cash, but it is most likely that neither the seller nor the buyer will be able to make-up the benefits of the commission amount. For instance, if you plan to sell your home, you will set a price comparing it with the prices of the other properties in the area. Many of these properties are sold at higher prices because of the local real estate agent’s expertise in understanding comparable properties, the current market, the current lender financing situation, etc … things that are constantly changing and a layman’s person wouldn’t be able to keep up with. This way the seller gets a higher percentage of the sale price that would have been paid to the agent if he/she was hired.
For those that decide on bypassing the local real estate agent, and choosing to buy direct from the owner, or list on their own, think they can save money without getting an agent involved in the deal. In these situations, we sometimes see an offer placed after considering all the clauses, but if the seller and buyer are not able to negotiate proper terms, then splitting the saved commission amount becomes irrelevant, because you can’t close the deal without the help of 2 arbitrators representing and coaching each side to an agreement.
Negotiating can be tricky: Many people do not support the idea of taking help from a real estate agent for finalizing a deal as they feel that negotiating directly brings more transparency and allows both the seller and the buyer to look into each other’s interests. Yes, this is true but only to some extent. To be fair, not all seller-buyer relationships are crystal clear and easy to deal.
Imagine you are a buyer, and you like a property and its location very much, but the wooden shelves, carpet and the kitchen are not pleasing you. What will you do? If you have an agent to get your deal done, he will take the initiative and convey your message to the owner in such a way that the owner does not feel insulted, and maybe you are more likely to get the desired compensation in return for that item you don’t like. This makes you stand in a better position for negotiating without treading the difficult ground of sales negotiation with the owner. You have no idea if the owner will even be a reasonable negotiator, whereas agents can always negotiate better with one another.
The bottom line is, buying and selling a property might seem to be an easy task, but, if you go through the never ending list of the FAQ’s on various websites about the reviews of the owners who took the initiative to sell or buy the property on their own, you’ll quickly see that it is not as simple as it sounds. Having a Los Gatos real estate professional on your side not only helps you in dealing with difficult situations, but also saves you from signing the wrong contract and protecting your Bay Area dream home purchase / sale.}