Most consumers do not engage in selling or buying real estate on a regular basis. It is therefore natural for them to not be fully aware of the intricacies involved, as a property investor might. This applies to any type of property whether it’s a foreclosure, regular for sale condos or homes, or other real assets.
One of the key benefits of working with a REALTOR®, to both buyers and sellers, is tapping their extensive experience in the business to secure the best deal possible. But for this to happen, the agent must be ‘contracted’ in order for them to officially ‘represent’ the client.
Without a contract, the ‘representation’ is limited to the agent conveying information provided by the other party, that the buyer or seller must then analyze and base their decisions upon. This is referred to more as working ‘with’ the customer, rather than working ‘for’ them. A far cry from an optimal position, in as far as the customer is concerned.
True value lies in the ability to tap the agent’s extensive negotiating, neighborhood knowledge and overall expertise, to the consumer’s advantage. To benefit from their recommendations on how to approach the negotiating process, rather than just relaying to them an asking price and carrying back counter offers. As a buyer, you want your agent to put serious skills to bear, much like a lawyer might. But they can legally only do so if they are under contract to ‘represent you.’
While the benefits of remaining free to work with one or more agents may seem appealing to some consumers, there are many risks associated with the approach. Carolyne Realty Corp. has a great write up on representation that covers the subject in far more detail and might be a good read for any buyer or seller. Realtor.com, on its website, also stresses the importance of proper representation when consumers are ready to take their search from online to real-life. Not just in securing the best deal possible, but also to access accurate data and facts about a property, before making the leap.
In a previous post we outlined eleven benefits to ‘selling’ property at auction, the least of which is that buyers are ready to transact, financing or cash already in hand.
Bernice Ross in her article for INMAN News offered more details, and discussed the benefits of not just selling, but also buying property at auction. The piece rightly suggests Realtors should consider talking to their clients about buying at auction. Here are some key benefits.
“In terms of benefits to the buyer:
- Smart investments are made as properties are usually purchased at fair market value through competitive bidding.
- The buyer knows the seller is committed to sell.
- In multi-property auctions, the buyer sees many offerings in the same place at the same time.
- Buyers determine the purchase price.
- Auctions eliminate long negotiation periods.
- Auctions reduce time to purchase property.
- Purchasing and closing dates are known.
- Buyers know they are competing fairly and on the same terms as all other buyers.
- Buyers receive comprehensive information on property via due diligence packet.
Because many auction models actually highlight working with a Realtor, this can be one of the quickest ways to earn a commission.”
National real estate coach and syndicated columnist Bernice Ross explained some of the various real estate auction types in a recent article on INMAN News, and highlighted some key benefits for sellers, drawn from NAR’s website, Realtor.org. The article also encourages Realtors to discuss auctions with their clients, as a means to list and sell their home.
Considering that the term ‘auction’ means ‘to augment,’ as in price appreciation, plus the advent of fee-free auctions brought forward by ListedBy.com, the shift towards auctioning property as a primary means to list and sell homes for both agent represented property and ‘for sale by owner’ assets, is just beginning.
Takes the seller out of the negotiation process. Ensures an aggressive marketing program that increases interest and visibility.