What’s a Realtor?

In the time of reality tv shows, lawsuits, and social media, what a real estate agent does and how they get paid is under scrutiny.

The extreme portrayals are everywhere. From designer clothes and drama you may get the impression that real estate agents’ main job is to look good and cash checks. From the news and allegations of the lawsuits it may lend credence to the idea that agents don’t bring value and are there just for the easy money.

So what is a real estate agent? What is a Realtor®? Why use one when you can represent yourself?

A real estate agent  by definition is a person who sells, leases, and managages buildings and land for clients. A Realtor®  is a trademarked word for a real estate agent who is a member of the National Association of Realtors. And technically you don’t “need” us. You can sell or buy your personal property on your own, similar to how you can represent yourself in a court of law without an attorney. A few people do have the expertise to represent themselves, and have the knowledge of local and national laws to make sure that they are complying with all pertinent laws and responsibilities.  However, to represent others property you are required to be an active real estate agent with all the licensing and insurance required by the governing authorities. 

For sellers, there are certain rules of disclosure they may be required to follow, although in NC it is a caveat emptor state which means “buyer beware”. Buyers can also purchase property for themselves without an agent.

So why use one?

For sellers, studies show that For Sale By Owner homes sell for less money then homes listed by agents. Some of this stems from a large percentage of FSBO’s being sold to someone they know versus a stranger (arms length transaction)  which likely plays a factor. Giving a deal to a friend or family member is understandable but could end up netting the seller less money to their pocket. 

As a listing agent, we take on the majority of the work with our resources. The first step is to get an accurate CMA (Comparable Market Analysis) to get the most accurate numbers comparing the subject property to other similar homes that have sold. Adjustments are made and a range is produced to what the numbers indicate the home can sell for. Once that number is agreed upon we then execute a listing agreement which lays out the responsibilities and length of time the seller will be represented. Then the marketing  begins. Professional photography is incredibly important, as well as being listed on national and local advertising sites. Most of this is online, and because of that there are inquiries  night and day. Most home owners don’t want to answer a lead email at 9 pm at night, but your agent  will because their job is to get your home sold. They will be answering phone calls, talking to buyers (at length, for hours, etc) and finding solutions and answers to questions that the seller may or may not be aware of (zoning, future developments, road noise, commercial activity). Most of the time, we deal with dozens of casual inquiries before we get to more serious buyers. We handle the showings, appointments, inspection scheduling etc. Selling real estate is a full time job and most sellers already have jobs and don’t have the time to represent their own property to the extent that their agent can. Because agents do this over and over again, they have the contacts and resources to get an inspector or a handy man out to repair issues that may arise. For most Americans, their home is their largest asset. It’s important that should they decide to sell it they get the best return on their investment. 

For buyers, especially in NC, an agent to assist them in the in’s and out’s of the process is beneficial.

My friend had to buy a house without a real estate agent, and she described how stressful it was to go through the own process as her own representative, setting up inspections, monitoring dates, and negotiating directly with the homeowner. For her, though it was stressful, she ended up getting an incredible deal on a property due to several major issues that she was able to address herself. But  despite that, she vows to never do it again. She feels that the cost of using a good agent is way more valuable than the amount it costs

An agent with access to the MLS can narrow down the properties a buyer is interested in, verify that it will work with the type of loan they’re getting (federal loans have several requirements), set up showings, and negotiate with the parties to ensure that emotions play less of an affect on the overall deal.

As a buyer beware state, it’s important to know any potential zoning issues, noise pollution possibilities, development, road expansions into the property and so much more to ensure there are no nasty surprises waiting after the closing table. An agent can also run a comparable market analysis to ensure that the offer price matches the fair market analysis and use that for negotiating as well. 

The joke is that real estate agents wear many hats. For many of us, we do more than just the duties of an agent. We have held the hand of a weeping client who has to sell their home due to a loved one’s death. We have served triple duty as movers, packers, and cleaners to make sure a seller is able to meet the standards of the contract and be on their way to their new adventure. We have advised (and assisted) on renovations, been painters, stagers, and so much more. For good agents, it’s more than just a job. We love what we do, we love helping our community, and we’re here to serve you, no matter where you are on your journey to home.