Why Bother Hiring A Realtor?
Why do people hire Realtors? After all, think of all THE MONEY you could save by just bypassing an agent when you buy your home! Seems like a clever-idea doesn't it? But before you attempt this, there are a few things you had better know about the real estate business...
Buying and selling real estate can be very complicated sometimes - especially if you don't have any experience or training in that area. This is why people typically rely on a licensed Minnesota Realtor to help guide them through the process of buying or selling their home.
The Difference Between
"An Agent" and "A Realtor"
There IS a difference between the standard "real estate agent" and "a Realtor". Real estate agents are people who are licensed by the state that they are in, to buy and sell real estate.
To get a license, each agent must complete a specific-amount of rigorous real estate training every year - as well as passing BOTH state and national tests (which ain't easy - although I got a 96!).
This is because the local (and national) tax, lending, and real estate laws are constantly changing and must be observed to in order to avoid causing financial and legal fiascos when making a real estate transaction.
In ADDITION to being an agent, I am also a licensed REALTOR. Licensed Minnesota Realtors are members of the N.A.R. (or National Association of Realtors) and are required to pay annual-fees and complete even MORE training to be able to hold the expert-title of "Realtor".
The N.A.R is an organization that is committed to the highest business and ethical standards - and that's why everyone on the Minnesota Real Estate Team and RE/MAX Advantage Plus are required to become licensed-Realtors as well.
How Do Realtors Get Paid?
Most people assume that they have to pay a commission directly to their Realtor when they buy a new home, but that isn't exactly how it works...
When someone sells their house, that seller negotiates a commission with the selling-agent. Then, when their home is sold (i.e. purchased buy you) the selling-agent receives that commission - which is also used to pay your Realtor.
So essentially, you never have to worry about writing a check out to your Realtor or paying them directly yourself because they receive a portion of the selling-agent's commission.
...That's just how this business works. 
Can't I Just "Represent Myself" And
Keep My Half Of The Commission Then?
Honestly, I don't know of any seller's-agents that would be willing to give up a part of their commission to a buyer (just because that buyer doesn't have an agent). Although this is theoretically possible - it's not a likely scenario...
So even if you attempt to represent yourself as the buyer, the seller's-agent will usually end up keeping the entire commission for themselves - and you will still NOT BE REPRESENTED by your own licensed Realtor...
Trying to be your own Realtor is like trying to be your own defense-attorney or perform surgery on yourself - you can try and do it - but this is a recipe for disaster! Being your own agent won't even save you money - it will most likely just end up COSTING YOU MORE in the long run!
Having an an Agent/Realtor to represent you is the smart thing to do because it helps to ensure that your purchase is completed in a timely-fashion and in legal-compliance with the law.
Adequate-representation will also help to protect you from being victimized by "less-than-scrupulous agents" who might otherwise try to take advantage of you when representing the seller. (Believe me, this happens all too often!)
So, Long Story - Short...
Trying to be your own Realtor is like trying to be your own lawyer - people who attempt this usually just get themselves into TROUBLE!
Find yourself an competent and experienced Realtor who has a good understanding of the local marketplace. Someone who knows how to effectively negotiate on your behalf - so that you get a GOOD DEAL on the home you want (WITHOUT getting ripped-off by the seller's agent)!
Let me know if there are any questions or concerns that I can answer for you - I'm happy to help.
To Your Success,
Alex Anderson |
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* Find The Home Of Your Dreams! *
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