What do we pay a realtor for? (part 1)
Despite the fact that the profession of “realtor” did not appear yesterday, the attitude towards it is still ambiguous.
Some consider realtors to be an unnecessary link in the “buyer-seller” chain, others are sure that the realtor is a reliable assistant and guarantor of the transaction, while others believe that realtor services are not worth a penny. By the way, the size of the commission is the most worrying for customers who still do not want to understand why a realtor claims to be their rightful 5%. Another answer to the question – what is the meaning of a realtor’s service and what does he charge for? – we offered readers in a recent article “Where is free cheese?” (“Real estate on the move” No. 20 of 05/31/06). The publication aroused interest among readers, and among realtors – a desire to join in the discussion of the topic. To continue the conversation, we invited Elena Kovalenko, director of the Soyuz Academy of Sciences, chairman of the Dnipropetrovsk branch of ASNU, Sergey Logutenko, director general of the Logutenko & Partners real estate bureau, DASN member, Arthur Oganesyan, chairman of the board of directors of Real Estate Exchange Corporation (Cherkasy), First Vice President of ASNU, President of the Association of Realtors Associations of Central and Eastern Europe (CEREAN).
Why does a realtor take such large commissions and how much are they justified?
When making any real estate transaction, buyers and sellers have numerous legal, informational, financial and psychological problems. It is a realtor in the shortest possible time that helps to understand and find the best way out in any given situation. Realtor determines the list of legal documents required for sale or purchase; selects the best options for buying or exchanging housing; It helps to get a loan from the bank, to make settlements between the parties to the transaction, as well as much more, which keeps the customers calm and financially interested. This is what the realtor’s fees are made up of.
First of all, the client pays for the security of the transaction, for the quality of the services provided and for minimizing time costs. Of course, everyone has the right to decide for himself whether he should contact a real estate agency or act independently on the market. However, before making such a decision, you should think about whether you can independently evaluate the apartment, draw up a preliminary contract that will stipulate all subsequent conditions for the acquisition, do you understand what obligations the seller and the buyer have and what responsibility if they are not fulfilled each side. Of course, there can be much more such questions, and in this process the main thing to remember is that scammers are looking for those who, not knowing the features of the realtor’s work, are trying to solve their housing issues on their own.
So the main question that should concern citizens is not “how much do realtors get” for their difficult work, but “what range of services is provided to clients” for their money. There is a choice: between payment and service “at a minimum” and – for the standard 5% commission, but for a full high-quality program.
With the development of the real estate market, the role of a realtor as a specialist-versatile person in the preparation and execution of transactions increases. Now it’s time for real estate agencies, not single intermediaries. Realtors who only show the apartment are no longer needed by anyone. Buyers do not want to pay for what they simply get with the seller. Today’s client wants to receive a wide range of services, ranging from information, legal, mortgage and ending with the registration of property rights in the BTI. At the same time, services can be in one “package”, or separately – the client decides for himself what range of services suits him.
For example, if he chooses an information service, then he concludes a contract for this type of service and pays a commission in the amount of 2-2.5%, 2-3%. The agent organizes several guaranteed impressions, taking into account the requirements of the client, and we say goodbye to this. Yes, the client can find an apartment or a commercial property for himself – the information is now available, it can be found in any specialized publication, only the quality there is different! And time, and money, for monitoring you need to spend a lot. The option may or may not be sold at all to your understanding of quality housing. We do not show apartments that are not really for sale or do not fit the buyer! In our database – only verified, reliable and processed information, which is behind the huge work of agents. If the client is counting on a profitable apartment option, a ready-made, legally verified package of documents, arranging the transfer of a deposit, consulting an appraiser, a lawyer – we are at his service. For example, our agency practices 6 different standard contracts for buyers and sellers, which involve mortgage services, exclusive sales and purchases, and other types of services. The amount of remuneration is calculated from the value of the object.