When deciding to buy a property, there are several good benefits you can get by hiring a real estate agent. A good agent has a great insight about current conditions in real estate market and can provide you with more specific listings, good legal advice and even negotiate a good deal for you. But they are also salespeople. Their job is to sell an apartment from their inventory and to get a commission. Real estate agents or brokers have a conflict of interest; on one hand they would like to find a suitable home for you to buy, but on the other hand they would like to sell the most expensive home to you because they can get more in commission.
Do real estate agent know where you should live?
If you hire a real-estate agent, their recommendations and suggestions will have a great influence on your final decision. So, here is the question: do you think real estate agent knows where you should live and works in your best interest to get you a home where you want to live, or they just want to sell you something where they can get highest commission?
Biggest online real estate company Zillow has its famous Zestimate feature for estimating values of houses and apartments. They developed unique algorithms to estimate the price for different properties on different addresses and everything can be seen on the map. Each location shows its own Zestimate price. It is not accurate all the time, but it serves as a benchmark for home buyers to judge the value of homes they would potentially buy.
There are some realtors who say that it is very difficult to value properties without a professional appraisal. Usually realtors have a direct access to local MLS system where they can see up-to-date listings and that is usually the source of most of their inventory. Realtor will usually recommend five or more properties which fit your criteria and budget. When you go and visit a property with your agent, he should already know specifics about the property and his job is to answer any questions you might have about the property.
In most states, licensed realtors are bound by common law to a fiduciary relationship with their clients, which means they should work in the best interest of their clients. Real estate market is changing very fast and realtors adapt very quickly to those changes. Realtors have the best understanding of conditions in real estate market at any time and they have the knowledge and experience to determine the market value of properties.
So, do you think real estate agent knows where you should live?