What You Can Expect To Pay A Playa Del Carmen Realtor

Paying someone else for a job, even if they have done a good job, is never something to look forward too. The same is true with Playa del Carmen Realtors. Some consider real estate agent fees to be a necessary evil. Some simply cannot spare the time and resource to sell their home, or buy their home on their own. Most Realtors work hard for their commission; still it is difficult to see thousands of dollars leave your hands and enter the pockets of your Realtor.

Most real estate agents are paid through a commission plan that most often ends up being a percentage of the selling/purchase price of the home. Percentages for the commission rate will vary from real estate agency to real estate agency, but most neighboring agents will have comparable rates. A common Realtor fee is 5-7% of the selling price.

Once you do the math you will realize that 5-7% is a lot of money (enough in fact to drive people to do their own buying and selling despite the difficulty). However, it may console you to know that the Realtor is not the recipient of the entire commission amount. After you pay your Playa del Carmen Realtor the agreed upon percentage, the Realtor must then split their earnings with the agency they work for. If there were other brokers involved in the purchase or sale than these brokers will also get a cut of the sale. The agency that the broker splits his commission with (usually paying out 50%) is compensated for the real estate agent’s work space, marketing, support and other resources needed to help in the sale.

Although it is possible to find fees that are lower than 5% in Playa del Carmen, it may be difficult especially in markets with a lot of real estate business and little competition between agencies (no competition means little incentive to be priced competitively). Some agencies are open to negotiating prices. Below are two suggestions for lowering your Realtor fees.

1. Agents who do not have to give as much money to the agencies that they work for have more flexibility in negotiating price with you. When a Realtor works for a company that requires 50% of the commission it puts the Realtor in a difficult position to have to compromise the small percentage that she is actually going to end up with. Some real estate agents are only required to pay 15% to their agencies. These are the types of Realtors that are more likely to give you some kind of discounted price.

2. There are Realtor services that you can opt out of in order to save money. Marketing methods such as newspaper advertisements are rarely what ends up selling a house. Telling your agent that you are not interested in such low yield expenses saves the agency money that they can then pass on to you.

If you are still unhappy with what you can expect to pay a Playa del Carmen Realtor consider all of the costs that you would be incurring had you chosen not to employ a Realtor. Remember that when you sell your home on your own you are responsible for paying for all forms of advertising, you pay to get your home listed with a service, you pay for legal council, you pay for copies, office supplies and documentation. You sacrifice money and time that could be saved had you not needed to spend so much time selling your property or looking for a new property. Consider the time lost working and the time lost with family and friends because you are responsible for being present at open houses, meeting with potential buyers, inspector reviews, etc. If you do not follow all of the laws and file the appropriate documents you could also be facing having to pay a great deal of money in a lawsuit. All of the costs add up fast.

How to Choose a Realtor – 7 Questions to Ask Your Real Estate Agent

Buying or selling real estate is probably the most significant transaction you’ll ever make in your life. That’s why it’s important to choose the best Realtor to help you achieve this goal. But before you hire the services of a real estate agent, there are important factors to consider.

Many people have the perception that all real estate agents are the same. Some sign with the first one that comes along. Unfortunately, they realize later on that they should have been more selective before signing an agreement. To guide you in choosing the best Realtor for your needs, below are seven questions to ask your prospective real estate agent.

1) What is your experience in real estate?

The first thing you need to ask a real estate agent is how long they’ve been in the real estate business. It doesn’t mean that you cannot enlist the services of newly licensed real estate agents. Just keep in mind that those who have years of experience under their belts are probably more knowledgeable on what to do, from listing to closing. Aside from the number of years in the business, ask them what segment of real estate they focus on – residential, commercial, luxury, etc. Find out if he/she is primarily a listing agent or a buyer’s agent (or both). Familiarity with the market is also essential, so ask what geographic areas the agent usually covers. You can even dig deeper by asking if the agent has received any awards for outstanding performance.

2) How many and what types of properties have you listed and sold in the past year?

It’s one of the most important questions you should ask a real estate agent. The number of properties he or she has listed and sold in the past year is a valuable indicator how good a real estate professional is in getting the job done. Take note that this question consists of two parts: properties listed and properties sold. Agents may demonstrate their ability to list homes; however, the more important thing is the sales part – the ability to close deals. If they have many properties listed and sold in the past year, it shows that whatever strategy the agent is using, it’s certainly working.

3) What was the average sales price for the properties you’ve sold over the last year?

Asking this will give you an idea in what kind of market the agent specializes. Find out if the real estate professional has experience selling properties in the price range you’re listing at. If a majority of properties sold falls on the low-end market segment, it might take longer for the agent to sell if yours is a higher-end home. Although agents can sell any property regardless of price range, it’s likely that they will have better success in the market and price segments in which they have the most experience.

4) What is your average sale to list price ratio?

The sale to list price ratio (sometimes called the sale-to-list or list-to-sale ratio) is the final sales price divided by the listing price, expressed as a percentage. If it is 100%, it means the sales price was equal to the list price. You can view this ratio in two ways. A skilled listing agent can negotiate sales prices that are equal or close to the list price, and sometimes even greater in a very competitive market. So ideally, listing agents should have sale to list price ratios closer to 100%. On the other side of the coin, a good buyer’s agent can often negotiate a sales price that is lower than the list price. Therefore, buyer’s agent ratios ideally should be lower than 99%.

5) What marketing strategies will you use?

Deciding on what strategies to use can spell the difference between success and failure. A poor marketing strategy will diminish the chances for success. Do your own due diligence by asking how the agent will sell your property. There are lots of options – staging, open houses, joint marketing, print advertising, and of course, online marketing. Whatever approaches are used, they should be designed to bring in the highest number of qualified potential buyers. Higher end properties can also often benefit from professional staging. In any case, your agent should advise you on how to best prepare the property to make it the most attractive to potential buyers.

6) Can you give me some references?

Reputation is important in this line of business. Whether you’re buying or selling a property, you should ask for references (past clients). If possible, call a few and ask them about their experiences with the agent. Were they pleased with the service provided? Also ask if they are in any way related to the agent. A list of references made up of friends or relatives generally won’t provide an objective assessment of the agent’s qualifications.

7) Do you offer any type of guarantee, and will you let me out of my contract early if I am not satisfied with your service?

You can’t say with certainty how things will go, even if you did your due diligence. For this reason, you should ensure that you’re prepared for any eventuality. If you sign a contract and later find that you’re not satisfied with the service, will the agent allow you to cancel the agreement? If things don’t work out the way they’re supposed to, you should have the freedom to choose another agent who can deliver better results.

As you can see, there are many things to consider when choosing a real estate agent. Finding and interviewing Realtors can be a very time-consuming and laborious task. However, now armed with these seven questions, you are on your way in choosing the best Realtor for your needs.

Why You Should Hire a Realtor

There is so much information out there, especially with the internet. Many people may think getting a real estate agent is not really a requirement. There are some people who choose to sell their homes through the internet using advertising channels as well as regular channels. As much as this works for some people, some fail miserably without representation. There are many reasons why you need a real estate agent working with you and they include:

Experience and education

When you choose a professional realtor, you will not have to know all there is to know about selling and buying in real estate. Finding the right person is a must. They will know more about how to negotiate and at the end of the day, you will get the best price regardless of whether you are buying or selling.

An agent will cushion you

When it comes to property showings, there is lots of spam involved. When you are buying a new home, the agent will keep the agents at bay and therefore you will not be lied to or misled. The agent will filter phone calls if you are selling. He or she will try as much as possible to get someone who is seriously making an offer.

Knowledge of the surrounding areas

Agents have a great knowledge, especially when it comes to neighborhoods. They can give you detailed information about an area that you are interested in. This is the only way you can make comparisons and decide on where to invest. You can inquire about schools, demographics, or even crime. If they don’t know too much about a place, they know the best places where they can get the buzz from.

Guidance on price

Many people think that an agent sets the property price, but this is far from it. An agent usually guides the clients to make good choices. When the listing is at say 7 percent, then the agent has got 7 percent interest in the sale while the client stands at 93 percent. The selling agents usually ask buyers to consider all the data that has been supplied and then settle on a price. Based on the conditions and demands, the agent now has the task of coming up with a strategy for negotiation.

The market conditions

A real estate agent is the best person who can tell you how the market is like currently. This governs the whole buying and selling process. There are many factors that will determine what to do next. Criteria like average market days, average and median prices, costs of same homes, and ratios of the listed to the sold prices are used to determine what needs to be done.

Networking

The agents are often connected to other people on a professional level. Such people provide all the services needed. There is a legal liability that keeps an agent from recommending someone or a company over others. However, they are aware of the reputation of the vendors in terms of pricing, competency, and efficiency.

The agents can offer you some references, especially when it involves people that they have already worked with.

Realtor Phobia

Some how in the world of buying and selling, there are few people who seem to have more power than they understand having. These people include loan officers at the bank, police officers and believe it or not, real estate agents. There are some home buyers that are afraid to call the number listed on the outside of a home for fear that the real estate agent will want to “meet” them in person. For some unknown reason, new home buyers think real estate agents will hassle them on the same level as a car salesman. That belief could be no farther from the truth.

I Will Get You In a Home Today!

The car salesman has one aim and one aim only. That aim is to get the potential car buyer into a car that same day. The real estate agent, on the other hand, understands the fact that there is literally no way possible to get a home buyer into a home in one day. The fears many first time homebuyers or new home buyers have about the real estate agent is as close to absurd as you could possibly get. But, where does this the fear begin?

Most often, word of mouth about a bad real estate experience is what the buyer ends up with a fear of the real estate profession. Home buyers have heard from a friend or friend of a friend that the real estate agent they worked with on their home sale or when they were trying to buy a home was cut throat and tried to force them into a home they didn’t like. This fear then passes down from friend to friend to the potential home buyer looking at the home you have listed. If a home buyer takes that chance and calls the number posted on the outside of the home they are immediately on guard; waiting for the real estate agent to request a meeting.

How Does the Real Estate Agent Beat Fear?

The best way for real estate agent to deal with the potential home buyer fear of meeting up with the agent is to suggest an open house in the future, or offer to show the family the inside of the home before meeting up with them in your real estate office. If the potential home buyer likes the home they will be more likely to drop that fear and talk with you about possibly purchasing the home. It is important when you meet the family or couple for the first time to offer them as much information as possible about the home; both good and bad. By being completely open with the potential home buyer about the home they will immediately fear less and trust more.