Bringing a real estate transaction to a reality is arguably one of the most engaging activities in real estate business. With this complexity, many people around the vast real estate business still do not consult realtors. The lack of involving a realtor in dealings is partially due to a misconception of their importance in a real estate transaction. In addition, questions like, what is a realtor’s commission, continues to be one of the most misunderstood aspects.
Why Do You Need A Realtor?
The value of a realtor is irreplaceable for any smooth real estate business transaction. A realtor is not synonymous with a typical real estate broker or an agent. In the USA for example, realtors can be brokers or agents, and not the other way around. The reasons why realtors are crucial in a transaction includes their oath to adhere to ethics and transparency in the real estate business. In addition, these professionals have a vast knowledge on ensuring their clients get the best in each deal. The commitment to a better deal in a transaction and practicing (the profession) under oath makes a realtor unreplaceable.
The Scope of A Realtor In A Real Estate Transaction
Since realtors are professional representative of parties in a real estate transaction, their mandate is wide and more engaging. Their mandate covers pre-sale dealings, transactional logistics, and finally reviewing any additional aspects of the real estate transaction. The intensity and time requirements of realtor make the standard percentage commission to be about 6%.
As part of the pre-listing dealings, a realtor ensures that there is a good establishment of rapport with the other party. This involves sending emails and scheduling meetings. It is also the work of the realtor to do research on the legality of the property before sale. The final step of this important stage of real estate transaction is writing a report to the party they represent. After establishing that the client’s requirements are met, the realtor then represents the clients in the transaction.
What Is the Recommend Commission?
Different cities have different realtor commission rate. The standard commission rate is 6%. It is important to note that some entities charge slightly below the standard rate. The golden rule in realtor commission is (to note that) that the rate is never fixed. Lack of a definite percentage commission gives potential clients a chance to bargain and settle with a reasonable commission, preferably less than 6%.
What Additional Services Does A Realtor Offers to A Real Estate Client?
Apart from making sure that the client gets the best deal in a real estate transaction, the following are some additional services that every realtor offers. First, it is the duty of a realtor to offer a potential buyer a virtual tour to the premise on sale. This is ideal in cementing the transaction deal. Second, it is the duty of a realtor to ensure that there are photos of the property for better exposure. Postcards are also ideal. The main purpose here is to help the potential customer have a clear picture of the property and later a sales deal.