Greg Gaev

If you have ever wondered why it’s better to work with an agent rather than listing “by owner,” you aren’t alone. Superficially, selling a home seems easy - until you actually try it.

According to statistics, nearly 80% of people give up and list with an agent after months of costly and time-consuming delay.

Here is why agents matter more than ever:

Time

Showing homes, answering calls, responding to email, scheduling inspections and appraisals plus much more are time consuming tasks; more importantly, everything involved in a real estate transaction is time sensitive. Delays can cause a deal to fall through even at the last moment.

Promotion

Agents specialize in a specific location and know exactly what buyers are searching for in your area.
Not only do they know how to price right and grab the attention of prospective buyers, but many agents have an established list of buyers waiting for specific types of properties.
Successful real estate marketing requires extensive experience, time and persistence to achieve top prices in a buyer’s market.

Cost

Selling a home requires more than simply placing a sign on the front lawn; it also entails a lot of out-of-pocket expenses with no guarantee of success. Advertising can cost hundreds or even thousands of dollars, listing with a “by owner” agency or MLS service typically adds hundreds more.

Finally, it is important to remember that real estate agents split commissions between the listing agent and the selling agent. To attract attention to your home it is still necessary to split the commission with any agents who bring buyers to the table.

Working with a real estate agent is likely to save you money over the long run.

Buying right is the first step to profit and success but after the bubble crisis, some potential buyers have been afraid to act. If you have been sitting on the side-line waiting for the next buying opportunity, now might be the time to buy.

Interest rates remain low. Don’t just think about the price of the house alone. If you purchase a median-priced home, every half point increase in interest results in an extra $1,000 annually for as long as you hold the loan.

Inflation adjusted prices are lower than ever. Nominal home prices have dropped 5, 10 or even as much as 25% from previous highs in most areas. When adjusted for inflation the savings are even greater.

Banking regulations are tightening.  Recent economic indicators lead many to believe banks will tighten lending requirements by requiring larger down payments, stricter qualification guidelines and other restrictions. Even if interest rates remain low, it could become much more difficult to qualify for a mortgage in the future.

Rising rents. Rental rates have been increasing with rate hikes expected for the next several years. During tough economic times, the ability to lock in a price and control costs is important to maintaining a working budget.

Fabulous foreclosures and incentives. Special programs at the state, local and federal level are able to assist investors and homeowners in purchasing foreclosures, short sales, REOs, and other property through special programs and incentive packages...

Comps are comparisons between your property and other similar properties. Age, location, amenities, and the general condition of the home are all used to compare your property against others in the same general vicinity in order to establish a price or fair market value.

Do Not Make This Mistake

Many sellers mistakenly look at the asking price of homes in the immediate vicinity when trying to establish a listing price, but that is often a major mistake. Actual sales data is a much more reliable indicator of value, since some sellers can be overly optimistic when it comes to setting an asking price.

Buyers also benefit from obtaining accurate comp data in order to determine what amenities, upgrades, and other items are included. Even homes that superficially look exactly the same in terms of square footage or floor plans may have substantial upgrades or extras that dramatically impact the price of the home.

Get the Most Accurate Data

Insist upon accurate and up-to-date comps when buying or selling a home, and do not confuse true comps with estimates or other inaccurate sources of data. Many popular websites use estimates based upon self-reported data or generalized insurance replacement rates.  While these may be useful for rough guidelines, they may cost you tens of thousands of dollars when buying or selling a home.

Work with an agent who provides the latest information specific for the area you are considering.
Age, condition, maintenance, upgrades, amenities, landscaping, appliances, energy efficiency, attractiveness, and even whether or not you have a corner lot can make a tremendous difference in the desirability and price of a home.

Most frequent house problems found by home inspectors

1. ^{Improper surface grading/drainage: Results in water penetration in basement or crawl space..}
2. ^{Improper electrical wiring: Includes insufficient electrical service to the house, inadequate overload protection, and amateur, often dangerous, wiring connections.}
3. ^{Heating systems: Includes broken or malfunctioning operation controls, blocked chimneys and unsafe exhaust disposal..}
4. ^{Poor overall maintenance: Includes cracked, peeling, or dirty painted surfaces, crumbling masonary, makeshift wiring or plumbing, and broken fixtures or appliances..}
5. ^{Structure-related problems: Includes damage to foundation walls, floor joists, rafters and window and door headers..}
6. ^{Plumbing: Includes old or incompatible piping materials, faulty fixtures and waste lines.}
7. ^{Interior flaws: Include inadequate caulking and/ or weather stripping on windows, doors, and wall surfaces which leads to water and air penetration.}
8. ^{Poor ventilation: Includes over-sealed homes which result in excessive interior moisture that causes rotting and premature failure of structural and non-structural elements..}

^{Source: The Canadian Association of Home and Property Inspectors}