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Do You Really Need A Realtor?

Why do you have to bother using a Realtor in purchasing a home? Many people think that they will get to save some money in their home purchase if they bypass a licensed real estate agent. Sounds lke a smart idea, doesn’t it? Before you jump in and attempt to make an investment as valuable as a home on your own, there are a few things that you have to be aware of…

Buying and selling real estate is more than what meets the eye – especially if you don’t have any experience or training in real estate industry. This is the reason why most people use the services licensed Realtor to guide them throughout the rigorous process of buying or selling their home.

What Is The Difference Between”Realtors” and “Real Estate Agents”

Many people don’t know the difference between “Realtors” and “Real Estate Agents”. Realtors are duly licensed by the state that they are work in to buy and sell real estate, and are qualified to become members of the Minnesota Multiple Listing Service ( MLS ) Listings.

Every real estate agent is required to complete certain number of required hours of rigorous real estate training yearly and pass both State and National tests to obtain a license. Realtors have to do more training hours than real estate agents. Realtors have to take more difficult tests. I am quite pleased to announce the fact that I scored a 96 on my test!

This yearly training and testing has to be done because local and national tax, lending, and real estate laws are always being changed and must be observed to in order to avoid causing financial and legal problems when making a real estate transaction.

Minnesota and Minneapolis Realtors

Licensed Minnesota Realtors are members of the National Association of Realtors, also known as N.A.R. I am are required to pay annual-fees and complete even MORE training to be able to hold the expert-title of “Realtor”. In ADDITION to being an real estate agent, I am also a licensed REALTOR.

N.A.R members are known for their highest business and ethical standards in the real estate industry. The Minnesota Real Estate Team and RE/MAX Advantage Plus are required to become licensed Realtors. Only a select few have made the grade and are part of this group.

How Do Realtors Get Paid?

Many people think that they have to pay a commission directly to their Realtor when they purchase their house, but that is not the exactly the situation.

A Seller will negotiate a commission with the Seller’s Agent. When the Seller gets a Buyer through the Seller’s Agent, the Seller’s Agent receives that commission, which is also used to pay your Realtor.

The bottom line is that, you – the Buyer, never has to shell out any amount of money when to use the services of a Realtor because they will receive a portion of the Selling Agent’s commission.

…That is how this real estate industry works. What If I “Represent Myself” AndKeep Half Of The Commission?

I don’t know of any Seller’s Agents that would be willing to give up a part of their commission that they will get from the seller to give it to a buyer, even if that buyer doesn’t have an agent. This is theoretically possible, but the chance of it happening is quite unlikely.

Even if you do represent yourself as the buyer, the seller’s-agent will usually end up keeping their entire commission and not sharing it with you – and you will still NOT BE REPRESENTED by your own licensed Realtor.

Becoming your own Realtor is similar to trying to perform brain surgery on yourself. You can do it but you already know what kind of disaster might happen. Anyway, even if you choose to be your own agent, it sill will not enable you to save money and in the long run, you will end up spending even more.

When you have an Agent/Realtor do the work for you it will ensure you that your real estate purchase will be completed in a timely-fashion and in legal-compliance with the law.

It is better that you find a adequate representation with a licensed Agent/Realtor in order to be protect you from being victimized by “less-than-scrupulous agents” who might try to take advantage of you when representing the seller. You need to be aware that people are victimized quite often if they are not represented properly.

To Cut the Long Story – Short…

Trying to be your own Realtor is like attempting to do brain surgery on yourself – people who attempt this will get themselves into TROUBLE!

The best thing to do is to find yourself an competent and experienced Realtor who has a good understanding of the local marketplace. Someone who knows how to expertly negotiate on your behalf – so that you get the best DEAL on the home you want – to AVOID getting ripped-off by the seller’s agent!

Buy Homes MN