A good real estate agent is worth their weight in GOLD
The caliber of your North Carolina realtor will make or break your home-selling process. PERIOD.
Selling your home with a real estate agent
All realtors will cost the same in fees, but they provide an enormous difference in value, resulting in thousands of dollars into your pocket.
In the US, there are 2 million active real estate licensees, 106,548 real estate brokerage firms, and 20% of realtors have had their license for a year or less. So, while the commission is the same, it’s blatantly obvious that the results are not.
Now think about this: you’re considering probably the largest financial transaction of your life. Are apples apples, or do professional real estate agents actually produce different results? It’s said that approximately 90% of homes are listed by less than 10% of realtors. This would indicated that there’s superstars in the market, and then there’s…. everyone else.
Expired listings are a real thing–please do your research and if you decide to list your home, don’t hesitate to ask us to connect you with a real agent we work with on all our properties.
Let's start with how it works
3% goes to the listing agent;
and 3% goes to the buyer’s agent
There are two agents involved in most transactions—a buying agent and a selling agent. The commission is a flat 6% fee which is paid by you, the seller. When the home is sold, that fee is split between your real estate agent and whatever agent is representing the buyer.
The agent ONLY gets paid if the home is sold. This is a good thing as (1) there’s no monetary risk signing a listing agreement and (2) this means that the agent is motivated to ensure the home will be sold, otherwise their time is wasted. If you work with an agent who’s working multiple jobs, there’s a chance they won’t feel the necessity to do everything possible to generate a deal that you find acceptable.
The standard listing agreement lasts 6 months. At the end of this period, if your real estate agent doesn’t generate an acceptable deal, then you can re-engage with another agent.
What does a real estate agent do?
Most people just think the realtor is simply an agent of convenience; someone that is there to substitute your lack of knowledge in the legalities and process of selling a home (which, of course, is hopefully true). We believe this is woefully understating the value of a great real estate agents but for starters, let’s just begin with that question: what can I expect from a real estate agent?
The Residential Property Disclosure Act, codified as North Carolina G.S. 47E, states that you must provide a disclosure of details known about the property. If these are done incorrectly, it can result in a lawsuit MONTHS after your home is sold. Thankfully, whether or not you’re getting an inspection prior to listing your home, you’re agent will ensure this is taken care of.
Nextly, there are certain things you may not even know about your property which your agent will help you attain. For example, you must disclose separately whether the property comes with mineral, oil, or gas rights (see North Carolina Gen. Stat. § 47E-4.1)
In addition, if your house was built before 1978, you must comply with federal Title X disclosures regarding lead-based paint and hazards. See the lead disclosure section of the EPA’s website for details.
Comparative market analysis
Real estate agents have exclusive access to data used to generate a CMA report that help sellers and buyers price a home.It takes a look at the features of your home and correlates that to comparable sales in your neighborhood.
However, it’s not simply about knowing what to expect the home to sell for. It’s also about producing a listing price that generates the largest amount of offers. It’s always better to have a bidding war than a single offer and the price of the home will directly correlate with the amount of buyers who come to view the home.
It’s important to quiz your agent on how they’ll draw in buyers
If all your agent is doing is throwing a sign in your yard and posting on the MLS, run away as fast as you can. Most brokerages are paying for large scale marketing schemes which highly benefit the seller:
- SEO (Search Engine Optimization): drives free traffic to high performing websites
- SEM (Search Engine Marketing): direct paid ads (like paid-per-click)
- Social media ads
- Direct mail campaigns
- Share their listings with dozens of local real estate agents
Hosting open house and private showings
Planning, organizing and carrying-out an open house + private showings requires time. It’s something you could do on your own but this is often where crucial conversations begin and your agent should be the expert on opening up buyers to begin talking about deal structures and terms.
Presenting offers and handling the closing process
When your agent receives an offer, they’re required to inform you. It’s at this point that you make a decision. Once a deal is accepted, it will go into escrow and a title search begins. North Carolina is an attorney closing state which means that escrow and title will go through a lawyer. Your agent will handle this process from start to finish.
A real estate agent's REAL job
When we need to sell a property, the #1 reason we use real estate agents is because they make tend to generate the highest price for the home. Further than convenience or some know-how, a trusted and knowledgeable agent will provide expert advise, strategies, and proper marketing to maximize the price of your home. Let’s break down a quick summary of what that means.
Which home repairs/improvements provide the greatest increase in value
Undoubtedly, a great realtor is worth the cost for the sheer fact that they know which small/large repairs, upgrades, landscaping your yard, staging your house and the other things are needed to maximize the value of your house.
The best real estate agents don’t just get the property sold, they’ll be your business partner and will tell you which repair/improvement investments will provide the greatest return for your budget. To get a full breakdown of those costs and the resulting profits, read How Much It Costs to Sell Your Home below.
Staging your home and landscaping
Your agent should be able to create an experience that enables a buyer to envision their future lives from the moment they park their car. It cannot be understated the impact that staging and landscaping has on the value of your home. Should you decide to skip out on this, your agent can attest to the loss of potentially tens of thousands of dollars in the price of your home.
(If you’re low on cash for a professional staging, here’s 5 tips to DIY.)
Additionally, real estate agents handle the negotiation for your property (not to be underestimated, especially with someone who thoroughly understands the deal mechanics of how to structure the right deal). An agent who understands non-monetary concessions in a deal will keep money in your pocket. If not done correctly, an inspection contingency can blow up a great deal.
Do not just choose any real estate agent. The agent you choose will be the difference of thousands of dollars in the sale price of your home. Give us a call or fill out our Contact Form if you’d like to be connected with our favorite agents in the area.
FOR SALE BY OWNER
If you’re one of the few who want to take a stab at selling your home without a real estate agent (ie. For Sale By Owner), follow this link below for a walkthrough to understand the risks and whether or not that makes financial sense for you. Spoiler Alert: we highly recommend getting a real estate agent.
Ready to take the next step?
Overall, we believe it’s a no brainer: if you would like to list your home traditionally, the best way make the most amount of profit, is to get an excellent real estate agent.
It’s 100% doable to list your own property, but definitely consider the lost profit/time before deciding to circumvent a realtor.
Reach out to us if you’d like us to put you in touch with the agents we highly recommend.
Let us know how we can help
Need a referral?
We’re always excited to connect you with great vendors in the area. If you need any of the following, don’t hesitate to reach out: