Home Inverness colorado loans Did you find a buyer on your own? Here’s why you still need an agent

Did you find a buyer on your own? Here’s why you still need an agent

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Let’s say you sell your house. And before you’ve even had a chance to snap ad photos and put them on the market, a buyer shows up. Maybe the buyer is making you an offer that you can’t refuse. Congratulations, you have taken so many steps away from the home selling process: tours, open houses, and price haggling.

With an offer in hand, you might be wondering what commission an agent would receive if they stepped in at this point in the home sale process. But keep in mind that what can seem like a straightforward transaction between a seller and a buyer once an offer is accepted isn’t usually that straightforward. You still have a marathon to complete before you get to the closing table.

We’ve broken the door-to-door sales process down into steps to see how an agent can help.

Commissions explained

Neither federal nor state laws govern commission rates, which means commissions are fully negotiable.

“And the negotiation of the commission is between you and your agent”, says Jackie davis, a real estate professional at American Realty in Inverness, FL.

To sum up some general numbers, if a home sells for $ 250,000 at a 6% commission, the seller’s agent would get $ 15,000. However, keep in mind that commission rates generally vary depending on the state you live in and between brokerage firms.

Always talk to multiple agents about your specific home selling needs.

“And find out if and how they would like to handle the sale to a buyer found by the seller,” says Sylvie Jonathan, an agent for Coldwell Banker Platinum Properties in Irvine, California.

The offer

In this scenario, a buyer made you an offer and you accepted. However, it’s time to take a step back: keep in mind that verbal offers are not legally binding in real estate transactions.

Agents typically provide a variety of forms such as home purchase contracts to get offers in writing. These forms vary to comply with state and local laws and eventually become a binding sales contract. The forms are also known as the purchase contract, deposit contract, or deposit receipt. It is also essential that an offer contains all the necessary elements to serve as a model for the final sale.

An agent can also manage a buyer’s deposit, typically 1 to 2% of the purchase price of the home, by depositing it in an escrow account held by a third party such as a real estate closing company, lawyer or a securities company agent. . Remember that escrow protects sellers. You can keep this money if a buyer gives up on a pending transaction.

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Watch: 5 Things to Do Before You List Your Home

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Conditions of sale and contingencies

“While it may seem like the hardest part is over if a seller finds a buyer on their own, there are many obstacles that can arise during the term of the contract which will require the skills of an agent to maintain the deal.” , explains Jonathan.

For example, an agent will ask you if you and your buyer agree not only on the sale price, but also on the terms of the sale.

The terms of a purchase contract include basic information such as the names of the parties involved, the legal description of the property to be transferred and the agreed price. But the terms also list crucial details such as the personal property that will be included in the sale (for example, appliances or accessories). Leaving the terms of sale outside the purchase contract can come back to haunt the buyer, the seller, or both.

An agent will also ensure that contingencies are added to your contract. Standard contingencies include a buyer getting financing, a home inspection, repairs, and an appraisal, all of which are crucial to the mortgage process.

The closure

Remember that you need several legal documents for the closing, including a blank title. This step is usually performed by a lawyer, who collects fees at closing.

But a real estate agent usually takes care of getting to the closing table setting a date, coordinating everyone’s schedule, and making sure all the necessary paperwork (which is usually a bunch of documents) are there. ready and properly signed.

The bottom line

“If a real estate professional can help you, his compensation is a matter of negotiation between you and the agent,” explains Phil Lunnon, a real estate professional at Lunnon Realty in Lakewood, CO.

But hiring an agent to draft the offer and guide her to the closing table is a smart move.

“It’s often best to have a buffer between buyer and seller,” Davis adds. “There are many obstacles to overcome in a transaction, and the involvement of a professional can make the process easier. “