What Does a Realtor Actually Do?

As a real estate agent, I have received a lot of questions about my job, and I have realized many people don't really understand what we do. If you watch a lot of HGTV (like me) and you are not familiar with the processes of real estate, you may think all a Realtor does is get paid to show houses. 

This is definitely not true! A Realtor is a licensed independent contractor who works with both homebuyers and sellers to either help them buy a property or to sell the property they own. It is only after a sale closes that the agent and the firm are paid a commission for their efforts. You may still be wondering what a Realtor contributes that is so imperative to the process of buying or selling a home. Read on to find out more. 

Why do you need a Realtor when buying a home? 

The process of buying a home is not a simple one. In fact, it is a tremendous endeavor that can be really stressful since it involves a lot of time, effort, paperwork, negotiation, and potential liabilities. Having the right licensed professional represent you and your interests alone in the process of buying a home can be extremely beneficial for you. A Realtor is not only licensed to show you current homes on the market, but they are also knowledgeable about almost everything having to do with the process of buying a home and can advise you every step of the way. 

They have knowledge about the neighborhoods, local school systems, surrounding communities and how much other homes are selling for in the neighborhood. A Realtor's price negotiating skills can make your experience much less stressful because they will fight for the fairest price for you. They can also point certain things out to you that you may or may not have noticed yourself. Additionally, they usually have trustworthy contacts within the community that can benefit you. A Realtor typically knows who the best home inspectors, contractors, and lenders are. When you choose a Realtor to represent you in the home-buying process as your buyer's agent, you are choosing an advocate. The best part is having a Realtor on your side will not cost you anything since their commission is typically paid by the seller at closing. 

Why can't you just sell your home yourself? 

You absolutely can try to sell your home or property by yourself. Just be prepared that you are going to have to handle all the showings, spend a lot of extra time locating potential buyers, networking, marketing, taking calls, etc. In the end, you are probably not going to sell your home for what it's really worth. According to the National Association of Realtors, those who choose the For Sale by Owner (FSBO) route make less money on the sale of their home than those who work with a real estate agent. The median selling price for FSBO homes was $190,000 in 2017. When the buyer knew the seller in a FSBO sale, the number plunges to the median selling price of $160,300. For homes sold with a real estate agent, the median selling price was $250,000 which is $60,000-$90,000 more. 

Of course, home sale prices are variable based on many factors which can include location, the area's cost of living, type of home, etc. Simply speaking, not hiring a professional Realtor will most likely cost you more than attempting to sell your home yourself. It could also cost you a lot of extra time, extra money, and extra headaches. A Realtor not only lists your house on the area's multiple listing service (which syndicates with all of the major real estate search engines), they also handle all marketing, all phone calls, and all showings. Most importantly, they protect your best interests above all.