Why Your Real Estate Agent, Must Be A Master Negotiator?

Although, there are many things, a homeowner, needs, from the real estate agent, he selects, and hires, perhaps, the most important, might be, hiring a quality, effective negotiator, who best represents the needs, goals, priorities, and personal situation, of his client! While, most people, seem to believe, they know how to negotiate, there is a significant difference between, merely, negotiating, and being a quality, professional negotiator! With that in mind, this article will attempt to, briefly consider, examine, review and discuss, how a homeowner, might be able to differentiate between, the ones who claim to be, versus the real negotiators, and some of the key necessities, of effective, quality, professional negotiating.

1. How a homeowner might know, who knows how to negotiate?: Prepared homeowners, seeking to sell their homes, should take the time, and make a concerted effort, to thoroughly interview, potential real estate agents, in order to determine, who might be best, for them! Since, for most of us, our house represents our single – biggest, financial asset, doesn’t it make sense, to hire the person, who might make this often – stressful period, the best possible experience, and obtain the best terms, and prices, available? Since everyone you interview, will probably claim to be a great negotiator, it’s important, to consider many things, to observe, and notice, during the process. Does the individual, tell you how great he is, and what he does, or does he provide an understanding of the benefits, rather than merely, reciting some facts? Will he effectively listen, and learn, what you seek, and want to achieve/ accomplish, or merely, proceed, with the same – old, same – old? Does the agent, explain, how he might customize his planning for you, or, merely, how he usually proceeds? However, one of the clearest indications, comes, when, you discuss, the agent’s commission/ fee! Examine, how comfortable, and self – confident, he is, and whether, he is ready, willing and able, to defend his fee, or, if, he immediately agrees, to adjusting it, when you question it! If someone can’t defend, effectively, their personal value, etc, how can he possibly, be expected, to negotiate, well, for you?

2. The keys to real estate negotiating: The process should begin, by clearly, identify, the strengths and weaknesses, of a particular house, and, having the local knowledge and expertise, to inform a client, how it compares, to other properties, on the real estate market. Hire someone, who will articulate, clearly, his reasoning and rationale, in terms of, suggested listing pricing, and, strategies, including marketing, price adjustments, etc! Win – win negotiators, are usually, most effective, because, they require prioritizing understanding, and proceeding, on the same – page. A homeowner must be, on the same – page, as his agent, so they might proceed, with effective teamwork, and the best, possible, strategy!

Hire an agent, who puts you, first, and positions your property, in a way, which will enhance the potential results, and minimize hassle, and/ or, stress! Protect your investment, by hiring the best person, for you!

How Much Trust Do You Place In Your Real Estate Agent?

You are actively looking to buy a property. You have identified an area that will be suitable for you and your family for many years to come. You have the financial situation well in hand. Your budget for purchasing the property and a certain amount of renovating is there.

You need a good agent, who will make your dream house come true for you.

Where to find such a bird?

It is not the quantity that is lacking. The number of agents active and licensed has more than doubled during the last five years. Of course, the economic boom and the construction of thousands of units coupled with the great mobility of our citizens have permitted the real estate industry to grow beyond anyone’s imagination.

But all agents are not the same, like no two dentists work in the same manner. This is not to say that agents should be compared to dentists. No, real estate agents are not as appreciated as a group by the public and barely claw up the scale value a little bit above politicians and used-car salesmen.

It is thus imperative that you take your time before choosing an agent.

One way to start is to go into a neighborhood that could be attractive to you and search for ‘sold’ signs on the type of properties that would seem desirable to you. Call the agent that had the listing and ask him if he has other similar properties in this sector of town.

You can also inquire from friends or colleagues for the name of agents who performed well for them.

An agent usually works strictly on commission and has to apportion his time to be as productive as possible. If you give him relatively clear parameters to deal with, he won’t be chasing blindly across town to try to satisfy you if you don’t know what you want.

Dealing with an agent is a two way street; i.e. you have got to help him help you. But as President Reagan once told the Soviet leader regarding the decrease in nuclear missiles: “Trust, But Verify”. So keep your agent under close scrutiny and help him find you the home that you want and that you need.

The Origins of the Six Percent Real Estate Agent Commission

The commission paid to the Real Estate agent is a serious amount of money and a concern in any transaction involving the sell of Real Estate. Where did this six percent commission come from?

The idea of a 6% Real Estate commission being paid to the agent originated during the 1940’s when local Real Estate Boards openly engaged in price fixing to establish a standard rate. This process was an out and out case of an unfair practice, but the 1940’s was a time when the attention of the country was directed to some serious external matters and the idea took hold and spread quickly through the industry.

In the early 1950’s, the Supreme Court ruled that an established 6% commission was illegal. Rather than open up commissions to a more competitive and free market system, the Real Estate Boards merely shifted gears with a bit of fancy linguistic footwork and began to call the 6% commission the “suggested” amount. During the 1950’s and 1960’s, they managed to get away with this practice without much trouble as the majority of real estate agents complied with the suggestion.

In the 1970’s lawsuits brought against the Real Estate Boards effectively put the skids on this practice. The Real Estate agent’s commissions were opened up to competition without the Boards either being able to mandate or even suggest 6% as the carved into stone rate. However, the rate did not alter very much in the years following these court cases. Although the rate may not have been carved into stone, it was pretty much established in the Real Estate market as a standard.

Generally, competitive markets benefit consumers. As long as someone is willing to offer a discounted rate, it would seem that the consumer stood to save money. However, the proponents of a standard 6% rate commission point to such things as health care to argue that the standard rate may actually be helping the consumer by holding the commission down to 6% rather than propping it up to that level. Although the cost of health care is not regulated, the general trend has been straight up off the charts.

Real Estate agents would be quick to point out that if you were to take a close look at just about any service or product being offered or sold in the 1940’s, you would find a very serious increase in cost to the consumer. Except for Real Estate commissions which are still right around 6%. The amount being paid to the agents has increased greatly merely because the value of the property being sold has increased. Today, the internet has been responsible for a few chips in the rock of the 6% commission by offering some straight fee or reduced rate services that allow the sellers to list their own properties. The results are still mixed and the 6% commission is still the standard.

Hiring a Real Estate Agent or Realtor

There are many reasons why a person should consider talking with an agent or a realtor if they are doing anything related to real estate. These services are great for businesses, individuals and investors. Whether you are interested in real estate because of your business, as an investor or because you want to buy a home or apartment, you are going to need some professional assistance. Here is a look at some of the main benefits of hiring a realtor and doing business with them:

1. Convenience and Access

One of the major reasons a company would talk with a commercial realtor in Omaha is because of the continence and access associated with the transaction. When it comes to commercial real estate in any part of Nebraska, it is very tough to find the right space and negotiate the right price for a purchase or rental unless you have a commercial realtor in Omaha who can assist you in the process. Any type of business can benefit from hiring a realtor, because they are all looking for the same things in the area.

2. Negotiations and Contracts

A huge reason to go with an agent or realtor is to ensure that any legal aspect of the deal is handled with aplomb. Even if you have some experience with real estate in the past, you are not going to know enough to ensure you are keeping things above board with regards to the deal. In addition, you may need a realtor to help you see whether the other party is being completely straightforward on their side of the deal. These are things that a real estate professional knows all about, which is why hiring them before you begin the process is the best way to go.

3. Finding the Perfect Space

Finding the right retail space in Omaha is not easy. Not only are you looking for something that is located in an enticing location, but you also want something that is proper value for money. There are two reasons why you may be interested in retail space in Omaha. You could be interested for investment purposes, or you may need the space for your own shop or store. If you are an investor, a realtor can help you properly assess the advantages and disadvantages of putting your money in a particular space. If you are someone who needs the space for your own business, the real estate agent can help you negotiate the deal and get you a proper price on a valuable space.

For anyone who is serious about putting their money in the real estate market, there is no way to emerge with a “win” unless you deal with a realtor. They are the experts on real estate, and they have the man-power to help you with the process. The various teams at a realtor’s office can help you with different aspects of the buying, selling and investing process as it pertains to real estate.

Everything A Real Estate Agent Doesn’t Want A Home Seller To Know! Part-1

Are you thinking about selling your home this spring? If you are it may pay dividends to stop and think about some of the issues confronting you as a home seller. Do you plan to sell for sale by owner or list your home with a real estate company? Did you know you could do both at the same time? Not many people know that…

If you are planning on retaining the services of a real estate agent then caution is the key word. Keep in mind that selling your home is a BIG business deal and you want the best real estate agent you can find representing your project. Finding a professional real estate agent can be a difficult task if you don’t know the basics questions to ask. Many agents are part-timers with one toe in the tub and they just can’t represent a homeowner as well as a full-time agent. Beyond this, you have to ask yourself (and the agent) how much business experience do they have? Do they have a business degree? What is their background in marketing and sales? Are they full time or part time? How many homes have they personally sold? When you retain the services of a real estate agent to sell your home you are the employer and you have the right to ask these types of question. You will be paying a real estate agent a HEFTY commission for selling your home IF it sells. Your job is to ask the right questions to select an agent that will get the job done in a professional manner.

One of the main things you want to avoid as a home seller is entering into long-term listing contracts with any real estate agent or company. Keep the listing contracts limited to 90 days at a time so that you can review the performance of the agent and their company. Among the things you want to negotiate when you are listing your home and have it show on the listing contract as a legal (addendum or attachment) is an itemized marketing plan indicating the exact marketing activities that will be used to sell your home. You want to see a marketing plan that itemizes where and when your home will be advertised, how many open houses will occur, when those open houses will take place and how they will be conducted. You want specifics about the advertising campaign around the selling of your home. Many agents will list a home and basically home a new agent spins their wheels to sell for them. The old saying among real estate agents is “if you don’t list, you don’t last”. What this means basically is an agent will do and say almost anything to get a listing agreement from a seller. Then, they throw the house into the MLS (multiple listing service), cross their fingers and hope another agent finds a buyer for your property. Most sellers don’t know the listing agent and their company will get the bulk of the commission whether they actually sell the home or not. Seasoned agents often list and let the new agents drive the tires off their car showing property-the key to success for real estate agents really lies in getting listing contracts, not necessarily selling those listing. Want some advice? Stay tuned to these articles because there is more to come and get your copy of the report offered below before you run off and sign that legally binding listing contract–it will help you cover your basic legal and financial interests.

Our E-Report: 101 Tips For Homebuyers, Sellers And Money Borrowers will help you with more information regarding this article-Just click the link below and request your copy and we’ll send it to your email address within 24 hours-absolutely free. Another Ezine Articles Exclusive! Until next time…

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James W. Hart, IV

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