What DO Brokers do?
Brokers facilitate the buying and selling of things. Things like securities, mortgage loans, insurance policies, and real estate. You’ll find professional services brokers in almost any industry. They’re accountants, lawyers, advertising professionals, consultants, financial advisers and real estate brokers to name a few. In a nutshell, professional services are any organization or profession that provides customized, knowledge-based services to clients and the product is their expertise.
When you hire a real estate professional to list and sell your home, you’re hiring a consultant, an advisor and negotiator to support you and look out for you during the entire process. They are licensed professionals who have been through extensive training.
You know the phrase, ‘you get what you pay for?’ It’s true regardless of which professional service you’re hiring. In any business transaction, you are looking for a professional who will do a good job and save you money. Real estate brokers know that you want to sell in the least amount of time for the highest price and pay the lowest commission. Unlike other professional services firms, the real estate broker doesn’t get paid until the sale closes.
The work begins before the first telephone call. Much like your insurance agent, real estate brokers spend much of their time advertising and marketing their services so they can grow and expand their networks. REALTORS® spend time learning what’s new on the market, touring available houses, answering telephone calls and emails, and keep track of new construction. They write articles (like this one), keep websites up-to-date, attend continuing education, and know the ins and outs of market fluctuations. They stay on-top of the industry so they’re ready and able to answer your questions.
Once you contact the broker, they ask questions to determine your goals, motivation and how they can best help you. They look at the market trends in your neighborhood and identify the top selling points. They do a walk-through of your house and note features that add value and features that may detract from its value. They find an unbiased, estimated market price of your home supported by a Comparative Market Analysis (CMA). They suggest a list price range that will bring buyers and offers!
The REALTOR® you hire will explain each document (and there are many, many documents), and answer your questions. The paperwork can be confusing and if not completed correctly can have legal consequences. Real estate specialists have been educated to understand contracts and are licensed to prepare them. They know which contract, addenda or agreement need to be used in each circumstance. They take the emotion out of the business deal and explain each step before it happens.
They will take care of photographing the property, putting the property in the local Multiple Listing Service (MLS), other marketing, hosting open houses, managing showings, evaluating feedback and other details associated with the sale. Your broker will create and distribute marketing pieces, manage on line and social media presence, network with buyer brokers to showcase your home. They know how to weed out the serious buyers from the lookie-loos.
The broker communicates with appraisers, title companies, lenders and home inspectors. Real estate brokers adhere to strict, legal, deadlines and keep track of those deadlines. They review offers with you and help you understand each offer so you can make an informed decision.
From first contact to closing, your real estate broker is your connection to lenders, appraisers, attorneys, photographers, closers and every other party involved. There are inevitably bumps in the road. And having somebody with experience, knowledge, and the ability to step back and guide the transaction from an impartial point of view adds great value. Afterall, the goal is to have a successful closing for everyone.