Category Archives: Commissions

5 Reasons to Hire a Real Estate Professional

Five Reasons to Hire a Real Estate ProfessionalHome buying and selling are complicated, detailed processes and, because they are often the most significant financial commitments of your lifetime, they can be highly stressful too. However, with a real estate professional on your side, buying or selling a home can be manageable, even enjoyable. Here are 5 reasons to hire a real estate professional when buying or selling a Kent, Covington or Maple Valley home.

  1. Rules, regs and paperwork. Each state regulates the contracts needed to buy or sell a home and these regulations change all the time. However, a real estate professional – ideally a Realtor – is up-to-date on the latest rules and regulations, and she can streamline the process for you.
  2. 180 steps to closing. According to the National Association of Realtors (NAR), there are 180 steps a full-service Realtor follows in return for their sales commission, including everything from pre-listing activities and entering a home into the MLS database to the home inspection and post-closing follow-up. Yes, 180! Let your real estate professional focus on those steps, while you focus on selecting the right home and getting ready for your move.
  3. Negotiation. Even if you enjoy a good negotiation, it can be very stressful, particularly when you are talking about a transaction worth hundreds of thousands of dollars. A real estate professional like me can take the emotion out of that process for you while putting years of negotiating experience to use.
  4. Home value. A real estate professional has the experience to price your home correctly, based on its true value and how current market conditions will affect the value. While you may know what you paid for your home and what you need to get out of it, a real estate professional can provide an objective value and her recommendations for putting a price tag on your home.
  5. Market conditions. The Seattle real estate market is one of the hottest in the country right now. An experienced and trusted real estate professional will stay on top of selling trends and know the ins and outs of the local real estate market to ensure you get the best deal possible.

If you are thinking of buying or selling a home this summer, contact Team Marti now for a no-obligation consultation of your situation.

5 Reasons Not to Sell Your Own Home (FSBO)

5 reasons not to FSBOLast week we shared a telling infographic from which explained some of the challenges of selling your own home, often referred to as FSBO, or For Sale By Owner. This week we’re sharing 5 reasons not to go the For Sale By Owner route.

  1. There are too many people to negotiate with, including:
    1. The buyer
    2. The buyer’s agent who solely represents the buyer’s interests
    3. The buyer’s attorney, in some cases
    4. The home inspection company who also works for the buyer
    5. The appraiser if there is a question of value
  2. You need an online presence. Studies show that 88% of buyers search online when buying a home, compared to 21% who look at newspaper ads. That’s why so many real estate agents have an online strategy for promoting a seller’s home. Do you have an online sales strategy or expertise in online marketing of homes? Can you offer a video tour?
  3. Internet exposure produces results. Of those who actually buy a home, 43% say they found the home they purchased on the Internet, 9% from a yard sign, and 1% from a newspaper ad. In other words, a yard sign and a newspaper ad are not enough to sell your home.
  4. Selling your own home has gotten more difficult. The documentation involved in buying and selling a home has gotten more difficult, along with disclosures and regulations. This is part of the reason that the popularity of FSBO dropped from 19% to 9% in the last 20+ years.
  5. You make more money when using a real estate agent. One of the reasons so many people go the FSBO route is because they believe they will save themselves on the real estate commission. That may be true on the seller’s side, but the buyer’s agent will still earn a commission. Also, studies show that real estate agents can typically get a higher price for your home than you can.

The bottom line – selling your own home requires specialized knowledge and a lot of time and energy. If you don’t have the skills or time needed to do it right, you are better off working with an experienced agent who knows the market and who can do the heavy lifting.




Who Puts YOU First in a Real Estate Transaction?

Realtor Marti Reeder celebrates 10 years in the business and other theWe recommend that, when buying or selling a home, you work with not just a real estate agent but that you choose a Realtor® to represent you – someone who holds a real estate license but who also is a member of the National Association of Realtors® and agrees to uphold NAR’s code of ethics. The NAR does a good job of explaining that here.

Taking that one step further, HouseLogic and Chase partnered in an article called “Who Represents You in a Real Estate Transaction?” earlier this year. In this article, the companies explain who represents whom in a real estate transaction. This information is important, so that you understand who represents YOU when you’re buying or selling a home. Here are the basics, according to HouseLogic and Chase:

Buyer’s agent: An agent who represents a homebuyer in a transaction. The sales commission can be paid by either the home buyer or home seller at closing.

Seller’s agent or listing agent: This person represents only the sellers. The seller pays the seller’s agent’s commission at closing.

Subagent or cooperating agent: If you find a home online and call the agency (e.g., John L. Scott) that is offering the home for sale and an agent shows you the home, that agent represents the seller. If you aren’t sure whom the agent represents, be sure to ask. In this situation, the seller’s agent shares his or her commission with the subagent.

Dual agent: In some states, one agent can represent both the buyer and the seller. There are potential conflicts of interest, so the agent should disclose up front that he or she represents both parties. In the case of a dual agent, the sellers typically pay the commission.

Designated or appointed agency: To avoid a dual agency situation, a broker may designate someone in their agency to represent the buyer and another to represent the seller. The sellers pay the commission, and the designated agents share it.

Nonagency or transaction brokerage: Some states allow a real estate agent to serve as a facilitator of a real estate transaction. Roles and responsibilities vary by state.

Regardless of the relationship you enter into, make sure you understand who an agent is working with before you sign any contracts. If you aren’t sure, please ask. An honest Realtor® will be open and transparent about their relationship and will be happy to explain what their role is and where their loyalties lie.