When you are looking for a property, whether it’s a primary residence where you hope to build a family or an investment property that is only intended as a moneymaker, it can be frustrating to have too many people involved. Realtors on the selling and purchasing side both earn a cut of the money spent and, while it’s a small percentage, it is money out of your pocket. So, do you really need a realtor? Can you go it alone? The simple answer is yes, but the costs you’ll incur by going through a real estate transaction without a realtor will far outweigh the percentage they earn.
Let’s explore some of the red flags that a realtor will find to save you money.
Pricing
The number one benefit of working with a realtor is the research. When you are looking to buy, you need to be sure that your investment (even if it’s your primary residence, it’s still an investment of your money) is worth the price you’ll pay.
A good realtor will have pulled comps from the area to let you know whether the price you intend on paying is fair, or if you should come in with a lower offer. Realtors can also give you estimated timelines based on what else is listed. Want to know how long it will take to sell your home? A realtor can tell you that. These are the hardest parts of the process, and a good realtor can help put your mind at ease.
Structural issues
A buyer brings a lot of emotion to the table when purchasing a property, even when that property is intended as an investment. They may see the ways they can improve the property or the upgrades that will increase rent. Homebuyers start to picture themselves in a property from the moment they start a walk-through.
While you look through a property with one view, a good realtor will be looking at the details. They should be able to point out when gutter runoffs are too close to the building, or slopes could lead to standing water around the property. These are the items that you may miss but could lead to structural damage. Finding these issues before making an offer or getting to the point of inspection will save time, money, and heartache.
Small things that will lead to more work
If you’ve ever sold a house or apartment, you know that there are a thousand and one small tasks to do before you show the house. Realtors will see the jobs that have been missed: bad painting work, out of date hardware, damaged countertops, prior water damage, cabinets that don’t close properly.
Realtors should note these things and request that they are fixed before the inspection. These are not end-of-the-world items, but fixing them prior to the sale will make the closing one step easier.
On these minor issues alone, a good realtor will offset their own costs.
Options for upgrades
Whether it’s offering staging advice to a seller or helping a buyer see potential upgrades that could bring in more money in the long run, realtors know the items that make a property appraise well. They know the items that are worth money, like upgraded kitchens and bathrooms, and areas that are not great investments, such as basement build-outs.
Most of us have our own sense of style and function, but a realtor helps you with a broad overview to understand what works across the board.
Things that could cause loan issues.
Similar to the previous point, there are somethings in a property that may not be a big deal to you, but underwriters will insist upon. For example, to qualify for certain veteran mortgages, homes have to pass a checklist for safety inspections. Some items are things that may not bother the buyer but will stop or at least pause the sale.
Realtors have the experience and enough knowledge of the area to know which red flags buyers, and sellers, need to be aware of and fix before the final inspection.
The neighborhood
When the Regalway team considers new investments, we do our due diligence. We want to know whether the neighborhood is good for families or an up-and-coming neighborhood. We analyze the school districts for that neighborhood and the surrounding neighborhoods to see what the competition could be. We check crime stats and, of course, home prices over the last ten years or more.
By the time we have fully assessed a neighborhood, we feel comfortable showing properties to our investors. We have reached out to other residents in the area to get an honest portrayal of life in that area. This is the kind of research you should expect from a realty team.
At Regalway Homes, we pride ourselves we provide our investment clients with every detail they need to know when purchasing a property. If you’re interested in becoming a property investor in Ontario, Canada, get in touch today:
Regalway Homes | info@regalwayhomes.com | (416) 791-9494
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