The real estate industry is incredibly complex with a lot of moving parts and pieces. As a consumer, you never get to dive into the back-end of what an agent does, and, even though you have worked through transactions alone or with the help of an agent, it’s incredibly important to dive deeper into the agent side of things to have a rounded understanding of contracts, transactions, and agent benefits. Therefore, I wanted to write an article that outlined the main takeaways I had in my experience as an Agent to best equip you moving forward.
Real Estate is COMPLICATED!
First and foremost, Real Estate transactions are complicated. Contracts are the backbone of any real estate transaction and serve as the framework outlining the terms and conditions of any real estate deal. As an agent, one of the most vital parts of the role was to ensure my clients had the proper representation and resources required to understand the different contracts that are put in front of them and their rights and obligations before signing on the dotted line. This knowledge is crucial for consumers, which is why having an agent that is connected with a vast network of attorneys, lenders, and other professionals can be a huge benefit in your Real Estate journey. You’re going to run into a few sets of contracts throughout the real estate transaction.
First, you’re going to see a contract that outlines the representation agreement between you and your real estate agent. This may be a Brokerage Fee Disclosure for rentals, Exclusive Right to Sell for selling your home, or a Buyer Representation Agreement if you are buying a home. Each of these will outline expectations, compensation, and timelines, which are all very important for you as a consumer.
Second, you’re going to run into the actual agreement for the transaction; a rental application, or an offer to purchase on either side. These are vital, and it’s very important to go over the paperwork with your agent in detail, as these will outline every detail of the transaction between signing and closing.
Finally, you’re going to sign the complete agreement – A lease, or Purchase and Sale agreement. These are the final details of the transaction between you and the other party, and should be gone over in detail with your attorney.
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Know Your Options! – Hiring the best team
Real Estate is not as simple as buying groceries. There’s a million ways to cut a transaction, and it’s vital to have a skilled team in your corner ready to walk you through the different creative approaches to closing a deal.
First, you want to have a skilled lender or mortgage broker. Financing is the trickiest part of a deal, and it’s important that you shop around and get the best terms possible. Your interest rate, closing costs, and closing timeline are all vital to writing a strong offer and setting yourself up for financial success in the future. Therefore, you need to shop around and speak to multiple professionals about your expectations and their products until you find a suitable option.
Second, don’t be afraid to “interview” agents before finding the best one. In a way, you’re like an employer, and you need to find the best fit for your requirements. Agents are used to being interviewed, so before you sign with the first agent you see, you should sit down with them and make sure you are a good match. Ask about their experience, brokerage, and familiarity with the area. Your agent can make or break your experience in a transaction, so it’s important that you put the time up front to set yourself up for future success.
Third, find an attorney that is going to best represent you. You’re going to want an experienced real estate attorney in your corner. Once it comes down to the contracts and negotiating terms, your real estate attorney is going to be your number one resource. The last thing you want is to put yourself in a bad deal, so be sure to find an attorney that is experienced, and most importantly, communicative. Speak to multiple, and ask your friends and family for any recommendations, as their experiences will be vital in this process.
The Area You’re In makes a HUGE Impact
In real estate, the location you are in can significantly influence your opportunities regardless of if you’re buying, selling, or renting. A favorable area not only ensures a good quality of life, but can also offer financial growth due to market changes over a period of time. Therefore, understanding the dynamics of your area and having an agent with experience in your location is crucial. If you’re interested in getting a snapshot of your specific market, don’t hesitate to reach out to me and I’d be happy to walk you through it!
Final Thoughts
As a Real Estate agent, I see every side of a transaction, from the client to the vendors. I found that many consumers aren’t experienced enough to understand every piston that’s firing when going through a transaction, so I hope that this article opens your eyes to the different facets of a real estate transaction and allows you to make more informed decisions moving forward!
