My New Blog

Lately, I have come across many, many potential (or maybe not so potential) clients that don't quite understand what it means to hire a real estate agent to protect them and their buying or selling (or renting) concerns during the process.  Here, I will disspell and de-mystify some areas for the potential client.

1.  It'll Cost Me 

    Of course it will cost you.  It's our job.  Most people get paid to do their job.  Where and how it will cost you are what I will open your eyes to. 

    a.  When an agent represents you on your sale it takes the mystery out of paperwork and other legalities.  Let me start out by saying I (and most other agents) am not a lawyer.  In a real estate transaction you will need legal representation as well to ensure that all contracts are in order and that there are no "catches" or "loopholes".  However, for those of you who think that getting a lawyer to help you during a transaction alone will do the job, you need to know that a lawyer will review the contract and ensure that it is legal and binding and show up at closing to explain all of the paperwork you will be signing.  That's it.  End of story.  A real estate lawyer generally costs between $350-$450 per transaction.  Based on that salary, they do not market your property, negotiate the sale, guide you about inspection issues that may come up, keep you abreast of all that goes into a sales transaction including title searches, buyer's financing conditions, etc.  Sure, you could do all of that on your own, but you have a full-time job, too, don't you?  So, at Orchard Real Estate Company, we will charge a fee to sell your property but it will ensure better marketing, faster sales, and quality customer service.  Fees vary based on the type of marketing package you will like.  There is limited marketing ( I'll throw it on my website and the MLS and see what happens) or more extensive marketing (where I will do print ads, over 177 web ads, open houses, brokers open houses, extra sign riders, custom brochures, virtual tours, etc.).  Depending on the service you choose, Orchard charges between 3.5-6% of your negotiated sales price.  Of our fee, we pay the buyer's broker cooperative compensation....

    b.  When an agent represents you on a purchase, you have someone looking out for your best interests in the buying transaction.  As I mentioned when explaining the seller's representation fees, when we represent you as a buyer, we get paid from the seller's broker.  In most cases, it costs you nothing to hire an agent to represent you in a purchasing transaction.  Many home buyers make the decision to call each and every listing agent of every property they are interested in to give them a tour.  Of course this takes you to the source that knows most about the property, but realize that the listing agent works for the seller and is representing their best interests.  So, who's looking out for you?  What you should do is look for an agent to help determine your home-buying criteria and research any and all properties that fit that criteria.  Now here's a shocker:  any member of the Multiple Listing Service can help you with just about any listing in the service area.  In our area, it's northwest Chicagoland.  As your buyer's agent, we can access info on thousands of properties.  We can enter a search based on your criteria and come up with the best options for you.  We can give you that information via e-mail (our most requested service), phone or any other avenue.  At your leisure, you can decide which properties you'd like to view in person.  At that time, you contact your buyer's agent and request he/she make appointments to view these properties.  When you decide to offer on a property, your buyer's agent will guide you through the paperwork, negotiations, inspections, utility and transfer guidelines and offer emotional support and/or networks to help in the buying process; i.e. home inspectors, attorneys, etc. 

 2.  Info on Dual-Agency 

The state of Illinois allows for dual-agency.  That means one broker can represent the seller and the buyer.  In a lot of states this practice is illegal and in my opinion, for good reason.  If a broker is supposed to represent their principle (client) fully, how is that possible if the same guy is working for both sides?  The state of Illinois does allow for this, but it must be disclosed in writing by both parties and is pretty regulated.  It sounds great to the broker, because, guess what?  They don't have to pay cooperative compensation to another broker, but if issues arise....who gets the great representation?  You can form your own opinions of dual-agency based on this info. 

3.    Listing Agreements

Many people are hesitant to hire real estate agents to list their property for sale.  They see and hear instances of people who didn't hire professionals and they saved "thousands of dollars".  How can you be sure that's true?  There have been studies done that show that many homes that sell without representation sell for less than their counterparts or "comps" in the same area and have longer market times.  Even with the added "expense" of paying a broker, these properties would have commanded more money and sold in a shorter amount of time.  With that in mind, you can still sell without a professional backing you, but besides the aformentioned, you will also have to handle your own marketing, negotiations, paperwork (these are legal forms, mind you) transfer concerns and utility and inspection issues.  As previously stated, Orchard renders a fee of 3.5-6% of the negotiated sales price of your home, depending on the marketing package you desire.  As members of the Realtors Association of Northwest Chicagoland who runs the Multiple Listing Service, we are regulated in how we enter our company's listings into the MLS and with those regulations, we must enter a listing contract begin date and an end date.  These dates are mutually agreed upon between Orchard and the sellers.  However, if you are not happy with the way things are progressing or your circumstances change, Orchard allows you to cancel the contract at any time.  We want you to want us to work for you.  We aren't about trapping you into doing business with us. 

4.    Experience

Overall, the general public doesn't harbor real estate know-how.  Yes, there are some people who buy and sell more often than others and just through the hands on experience, know a little more about the process.  For the most part, though, it can be pretty intimidating.  I mean, if you find it challenging just hiring a broker to help you out, imagine what it takes to actually procure a transaction a.k.a. sell/buy it.  When someone says "you wouldn't try to perform surgery yourself, would you?  Why would you try to sell/buy real estate by yourself?", it kind of rubs me the wrong way, because I would never compare my knowledge of the real estate market to those who know about saving lives, but there is something to be said for hiring someone who works in the field every single day.  For example, I could probably sealcoat my driveway (or paint my house or sew my own clothes or whatever), if I really wanted to, but I'd much rather hire someone who already has the tools, know-how, troubleshooting skills and daily experience to get it done quicker and most likely more cost effective than I could.  It's your call.

For assistance with any other real estate matters or to have me elaborate on these issues, feel free to contact me at 847-366-1654 or my co-broker, Jennifer Hirst, at 847-833-2874 or any of the other agents at 847-487-7090.  Or shoot a quick e-mail to gina.garbis@orchardrealestatecompany.com.