Profriends: Reasons Why A Real Estate Agent Is Needed

I am one of those people who wondered before why a real estate agent is needed when buying a home. This question first occurred to me while we were still deciding on ProFriends (Property Company of Friends Inc). What is the purpose of an agent aside from aiming to get buyers and earn commission? So I read up, did my research, and now, I am going to share it to you guys.

As skeptic as we may be, it really is the duty of a true or professional real estate agent to place the home buyer’s interest ahead of the agent’s interest. He or she must also disclose all sufficient information or facts, keep buyer’s data confidential, and negotiate on the buyer’s behalf. Agents can also offer you properties/homes/listings which are available before being announced to the public. Other than that, real estate agents may also:

• Provide comparable sales from the tax rolls.
• Provide sales data from MLS based on map searches.
• Pull property profiles reflecting sales history, property data, demographics and neighborhood services.
• Run reports on listing agent's list-price to sales-price ratios.
• Obtain a copy of the home's historical documents.
• Calculate annual facts and trends about an area.
• Suggest pricing strategy.
• Prepare a strong offer that presents the buyer in the best light based on market demands and agent interaction / networking.
• Provide a buffer between you and the seller's agent.
• Review of documents for loopholes and obtain disclosures (source: homebuying.about.com).

Here are other good reasons I found out via the same source. “Agents either possess intimate knowledge or they know where to find the industry buzz about your neighborhood. They (agents) can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime or demographics. For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.”

Also, “Real estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.”

And finally, the best reason (for me because I am lazy) is “One-page deposit receipts were prevalent in the early 1970s. Today's purchase agreements run 10 pages or more. That does not include the federal- and state-mandated disclosures nor disclosures dictated by local custom. Most real estate files average thicknesses from one to three inches of paper. One tiny mistake or omission could land you in court or cost you thousands.”

When it comes to selling homes, real estate agents are very helpful. No wonder many are hired by property developers, right?