Tuesday, March 13, 2007

Buyers Need to Use an Agent

There is a common misconception that homebuyers can save themselves money by not using a real estate agent. In most cases the seller's agent offers a commission split to the buyer's agent as an incentive to attract buyers. So, the buyer's agent is effectively getting paid by the seller and not the buyer.

The purpose of having a buyer's agent is to have a professional there to help protect your interest. Whether that means contract review, offer pricing/strategy, guidance with the transaction process, or market analysis, you are putting yourself at a distinct disadvantage by not using a qualified agent.

Saturday, February 10, 2007

Danger of For Sale By Owner (FSBO)

It seems logical that you can profit more by selling your house on your own and avoiding brokerage fees. However, a good realtor can actually net you more despite his/her commission costs. In fact, the National Association of Realtors (NAR) reports that the average seller makes 16% more by using a real estate professional versus selling on their own.

Realtors have access to marketing tools that attract more pre-qualified buyers. The more viewings the realtor can bring, the higher the price that home can demand and the quicker it will sell. As Chicago continues to move towards a buyer's market, attracting more potential buyers becomes increasingly important.

Thursday, January 11, 2007

Importance of Multiple Listing Service (MLS)

The Multiple Listing Service (MLS) is a huge database of homes for sale through brokers. Most buyers hire agents who use the MLS as their sole search method for potential homes. By not having your property listed on the MLS, it is eliminated from exposure to a vast majority of the buyers.

Be especially careful with brokers who are willing to list your home on the MLS for a set fee or at a reduced commission. The agent representing the seller shares his commission with the agent representing the buyer. The buyer agent's share amount is advertised on the MLS. Offering little or no commission will deter most buyer agents from showing their clients that property, especially when there are so many others to choose from.
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