What to Expect During a Real Estate Transaction
A real estate transaction begins when you and your realtor collaborate to sell or buy a home. During this stage, both of you will negotiate on the details of the sale and sign a contract that will govern its execution.
According to the National Association of Realtors (NAR), the first step in selecting an agent is conducting interviews. This can be done online or in person, but make sure you get as much information from each one as possible before selecting who best suits your needs.
When searching for a contractor, you’ll want to consider their experience in the area you are targeting, how long they have been in business and whether they have any other clients who might be looking to purchase property similar to yours. Doing this will allow you to maximize both time and money spent while avoiding potential pitfalls.
Additionally, you’ll want to determine what kind of commission fee they will charge and their “splits” rate (i.e., what percentage they keep from the sale). You may then attempt to negotiate a lower commission rate if you believe it will be more advantageous for both of you in the long run.
Negotiating with Your Realtor
When bargaining with your realtor, it’s best to be upfront and state that you are willing to pay less. Mentioning this at the beginning of the conversation can help avoid any potential misunderstandings and make it simpler for them to accept your proposal.
Request your realtor to show you several recently sold similar properties in your neighborhood or within a few blocks of the property you’re considering. These are known as comparable sales and can give you a clear indication of how your home stacks up against others in its price range.
When researching the market value of your property, the date it first went on the market can give you an indication of how quickly it could sell in today’s climate. Generally, the faster a house sells, the greater your chances are at receiving top dollar for it.
Another way to increase your chances of a successful sale is being persistent when negotiating with your agent. A great relationship between both of you will make them more willing to listen and negotiate on price for you at lower costs.
Your realtor often covers many upfront costs, such as professional photos and marketing expenses, so you have room to negotiate. For instance, offering to cover the expense of a friend’s professional photography could drastically reduce how much money your agent needs to invest in your marketing campaign.
Once your home has sold, your agent must create a document that officially closes the sale and transfers property title from the seller to you. This closing document includes information such as buyer’s identity, purchase price, and other pertinent details related to the transaction. Once reviewed by an attorney, these documents must then be signed by all parties involved in it.
