Whether you are a home buyer or seller, you may wonder about the advantages and disadvantages of self-representing in a real estate transaction. Why hire the services a realtor in Boulder Colorado? What value do they bring?
Why a Home Seller Needs a Realtor in Boulder Colorado
1. Appraising the Fair Market Value of Your Home
There is a tendency for many inexperienced home sellers to either under price or over price their home. Some will remember the price of the home when they first bought it and attempt to sell it for the same price, without considering if the property has appreciated or depreciated.
On the other hand, home sellers who have done a number of improvements tend to set a higher price, not considering that that renovation value doesn’t translate 100% into home value; their renovations may have even decreased the home’s value.
Realtors and their brokerage companies have the experience to assess the fair market value of your home. They check out any developments in your area which may lower or raise the value of your property. They also make the necessary assessments of current condition and/or renovations of your home.
Here in Colorado it is difficult to rely on the algorithms of free services such as Zillow or Trulia, as their system doesn’t take into account the nuances of location (view, proximity to mountains, etc) and customization of home. The closer you live to the mountains, the less cost per square foot is a relevant data source.
Once fair market value is determined, you can discuss projects to increase value and pricing strategy to maximize your return and speed of sale.
2. Advertising Your Property
In order to sell your home, you need to make people aware that it is available on the real estate market. Brokers know the importance of advertising your property.
It doesn’t just consist of their putting a “For Sale” sign on your front lawn. Top realtors have highest quality professional photos taken, which enormously increase time that potential buyers view each home online.
They create custom ad campaigns for each property, highlighting the most desirable characteristics. These campaign are then syndicated throughout hundreds of sources on the internet. Brokers also advertise through print publications and open houses, social media, and more.
3. The Need for a Negotiator
As a home seller, you need to have an advocate who will look after your best interests. Your real estate agent has a fiduciary responsibility to put your financial best interests first.
He or she will explore your real estate goals and figure out how to maximize your return on investment.
There are many negotiation points within the transaction. Realtors will buffer the seller from the haggling of buyers and their agents, diffusing dialog so that the transaction can be completed with all parties satisfied.
4. Handling Contracts and Other Paperwork
All real estate transactions require preparing contracts and other legal paperwork. If you don’t know the specific documents that you need to prepare and the terms, you may not only find yourself in trouble with your buyer, but also with the IRS and other government agencies that handle legal matters pertaining to real estate.
A real estate agent has been licensed to prepare real estate contracts. He or she will explain questions you may have about terms and legal repercussions.
Whatever terms are stated in the contract will be honored by both buyer’s and seller’s parties for their mutual agreement and satisfaction. We also help the seller find contractors to accomplish their goals before and during the transaction, schedule appointments, etc.
Why a Home Buyer Needs a Realtor
1. Finding the Right Property
Have a thorough conversation with your buyer agent before beginning your search, so that you can clarify your motivation for buying, desired transaction timing, family and work space requirements, and the features that your home needs to have.
You may want a home with a garage, garden space, high fencing for security, or an all-around quiet, peaceful neighborhood.
Additionally, depending on the condition of your market (buyers’ or sellers’ market), you need to have an in-depth conversation about contract and term strategies, which will accelerate your ability to get into contract and stay in contract.
Because they have access to both print and social media as well as a vast local network, your realtor in Boulder Colorado can help you find a home based on your specifications and provide you with a number of options. Of course, you will also need to give them your budget so that they can further narrow down your choices.
2. A Buyer Needs a Negotiator More
On the buyer’s end, negotiating is an essential part of the transaction. Obviously, buyers prefer to buy a home at their desired price.
Sellers may negotiate or hold firm on pricing, depending on their risk tolerance, perceived demand, the continual care taken of their property, and quality of renovations.
Please note: in a very strong seller’s market, in which there are multiple buyers lined up to buy the same property, it is possible that the seller may not negotiate at all. We’ve seen sellers refuse to negotiate on price and inspection items in 2014 and 2015.
If you’re interested in a home, your buyer agent will do a thorough assessment of the fair market value of the home. She/he will also help the buyer think creatively on pricing and terms.
For example, excluding a hot tub could reduce purchase price, or the seller could give the buyer furniture in lieu of crediting the buyer with money for inspection items. Skilled buyers’ agents can do this without sounding offensive or insulting to the seller.
3. Mortgage Assistance
Real estate agents can recommend good quality local lenders to you. Local lenders are important in today’s real estate market, as they understand the nuances of our mountain values better than online lenders.
Lenders assist you by checking on your credit records and advising you accordingly on just how much you can afford to borrow/spend for the property you are interested in buying.
They can also give you accurate figures on how much you will be spending on interest and taxes on your mortgage each month. Your lender and your agent will work together throughout the contract, making sure all the deadlines are met and that your interests are protected throughout the transaction.
4. Finalizing Contracts
Once a deal has been struck between seller and buyer, it is important that any contracts or other legal documents are checked thoroughly so that the terms are exactly what have been agreed upon by both parties. Your agent and lender will work in tandem to keep you safely in contract and to protect your earnest money.