Buyer and seller of a home usually approach the deal with completely different perspectives. The most interesting aspect of property negotiations is that the objectives of both parties do not necessarily coincide.
In fact, to be very blunt, one party would want to buy the property cheap while the other would be haggling for the best price possible.
Despite all this commotion, it is a fact that both of them want the sale to materialize.
This is why it is highly advisable to seek help from a property dealer to assist in the negotiation phase, and eventually cutting a deal pertaining to house and land packages austral.
Below, you will find some reasons why you should seek help from property dealers.
The Money Factor
You may be planning to sell your property all by yourself. In such a case, your ultimate goal will be to get the highest possible price that you can get from the buyer. You will also try to save money that would otherwise be required to pay as commission
However, if your buyer has hired a property dealer as an agent, you will end up paying the commission anyway.
The commission payable by the buyer of the property is generally made part of the purchasing price. You will still be able to save that part of the commission which you would have paid to property dealer if you had hired one as well.
If you are the buyer, hiring a property agent is a viable idea because the commission will be paid by the seller rather than you.
In very rare cases, the seller refuses to pay the agent’s commission. In such a case, you may leave the property altogether, and seek other options.
Documentation
It is obvious that as a layman, you will not have the comprehensive knowledge of the entire documentation requirements of closing a property deal. This does not mean that you can get relaxation of any kind in this regard. Whether you know about the papers or not, proper documentation is necessary.
There is a purchase agreement which may take around 10 pages. Then, there are several other documents that need to be completed and submitted. These would pertain to Federal, state, and local authorities.
Fortunately, property dealers are aware of all these requirements. Their knowledge in this area is impeccable. If you are not seeking help from a property dealer for the purpose of saving a few bucks, you should keep in mind that any kind of incomplete or omitted documents could cost you much more than the amount of commission that you had planned to save.
Consider the following scenario: You make an offer to purchase a property. But, the offer is subject to you obtaining a mortgage. You don’t have enough cash to pay for the house from your own pocket which means that obtaining a mortgage is imperative for you to complete the deal.
However, being unfamiliar with the documentation requirements, you fail to mention this clause in the purchase agreement which could render the purchase deal null and void in case you did not succeed in obtaining financing.
If the purchase agreement is signed, you will be obligated to buy the house whether you have financing or not. You will be in a jam, and the buyer will have the option to sue you in the court of law.
A property dealer knows all the intricacies involved in such deals and allows you to stay clear of these contingencies that may arise due to your limited knowledge in this field.
Fiduciary Responsibility of the Dealer
Regardless of the fact that whether you are buying or selling a property, you can always be sure that the property dealer is on your side. When you hire a property dealer, it becomes his fiduciary duty to safeguard your interests. It also becomes his legal responsibility.
Confidentiality constitutes a part of this fiduciary duty. If you are the purchaser, would you like to divulge all your financial information to a seller who is not obligated by law to keep this information safe? Or can you easily share the same information with the seller’s agent who has a legal obligation towards his client but not towards you?
If you seek help from a property dealer, he will know exactly which information needs to be shared with others. He will solely share that information and hold back the rest.
You do have legal recourse in case your confidential information gets shared with a third party, but that will require you to fight another legal battle which will only hinder your property deal.
Technical Knowledge
A layman who is buying a property knows what he wants. He is sure that he wants X number of bedrooms, attached bathrooms, and a nice little garage. He has a complete list of all these requirements which he is using as a benchmark while looking at the properties.
However, the property dealer is more concerned about the technical issues involved in such deals. These are the issues that usually do not concern the layman. Take for example issues with roofs, leakages, furnace, and even invasive insects. A property dealer will know about these problems by simply having the first look at the property. He would also know how these will come into the equation while negotiating for the property. His technical experience will be an asset which can help you save quite a lot of money in the long run.
There is a concept of comparable sales which allows you to arrive at a price that is reasonable for any property. The dealer knows how to calculate this price through the help of current market data and analysis.
Tough Negotiators
Negotiating a property deal is not an easy task. There are so many factors involved in these negotiations that can affect the price of the property you are planning to buy/sell.
When you are working with a property dealer, it becomes his responsibility to negotiate on your behalf and strive to get you the best possible price in both cases.
Dealers have this knack for negotiation which allows them to gauge the strengths and weaknesses of their opponents, and then manipulate them into getting the best deal.
The Final Word
No one can be good at everything. Dealing in property is something that we do not do often. It doesn’t hurt to admit that we are not good at this task, and need professional assistance.
There are many reasons to seek help from a property dealer when you are either buying or selling a piece of property.
Some of them have been listed in the above article. However, when you actually go about executing such a deal, you will find out several other reasons unique to the particular circumstance that will convince you further.