You know the type. Coupon-cutter. Penny-pincher. DIY enthusiast. 2-for-1 fanatic. Clearance rack junky. This might even describe you. Many of you readers out there like a good deal, and love to save money. Hey, I get it. It’s practical. It’s life. Given the fact that a home purchase is one of the most expensive transactions you will ever complete in your life, savers might be tempted to cut corners in the home purchase or sale and try to save a few dimes along the way. Some people might even consider cutting the real estate agent to save some cash.

But you shouldn’t. Even in the age of Zillow and Trulia, the real estate profession is still strong. Why? Especially given the fact that travel agents and other professions have been vaporized by the internet, why are real estate brokers still so important? The short answer is that they are an integral part of any home deal, and a good real estate agent can save you time, worry, and yes, even money. Here’s why you should hire an agent to help you if you are buying or selling a home instead of doing it yourself.

Education and Experience

Most Americans will only buy a few homes in their lifetimes—hardly often enough to become experts on the real estate market, the worth of a home, or how to properly advertise if they are selling. In contrast, a real estate agent’s full time job is knowing these things. Their education and experience is what you’re hiring them for, and a good agent knows how to negotiate in ways that you just don’t.

Furthermore, real estate agents network. They have access to online listings, sure, but they also communicate with each other so that they have their finger on the pulse of the market and the inventory that’s available. This is an advantage for both a buyer and a seller. A real estate agent can list your home aggressively if you’re selling, and crunch numbers to give you a good sense of what homes are really worth if you’re buying. Their diverse experience can also be a help—they know what kind of pictures to post to help a home sell, and they can even help with staging. In other words, a Realtor helps you with the financial stuff, the legal stuff, the design stuff…and a whole lot of other stuff! These are difficult tasks that most people won’t be able to complete well without licensed help.

Time and Money

Do you know what CMAs are? What about a FDR? (Not the president, BTW.) Not only does a real estate agent work on helping you buy or sell your home, they are your guide and translator throughout the process. Over the years, the process of home buying has become significantly more difficult to understand for the lay person—the ins and outs of contracts, of listing lingo, and financing. What could take you hours to understand can easily be explained (and oftentimes completed) with a real estate agent in minutes. Since they work for you, they’re invested in your happiness and success as a buyer or a seller, and working to save you time in the process is what you’re paying for. Also, they do loads of paperwork so you don’t have to. They will be available for you to answer questions at any time.

Indeed, even though they’ll get a percentage of the sale, real estate agents can help your home sell well, and also act as an advocate for you while you’re buying. Because they’re a third party in the transaction process, they will do the dirty work of negotiating so you get the best deal possible. It’s their job. They get messy so you don’t have to—and help you make, or save money, along the way.

Peace of Mind

Let’s be honest. Buying and selling a home is stressful. There are so many unknowns. If you hire a good agent, though, many of those unknowns can become more stable, and even be taken away. So do yourself a favor, and don’t try to undertake the task yourself using just websites for help. Hiring a real estate agent will pay off in the end.

Nice newsletter. Good article. Good information. Thank you. Carol

For conventional financing, borrowers with scores at 740 or anywhere above generally receive the same loan pricing (rate and cost). That being said, the better your credit the higher your chances of receiving loan approval with high debt to income (up to 50%) or high loan to value (up to 95%) which can be a major benefit when applying for a new loan. For Jumbo financing, borrowers with credit scores above 800 are generally rewarded with both better pricing and easier guidelines. There are no situations where better credit is a negative when obtaining new financing so we should all continue to strive to reach and then stay in the 800’s.

What are the advantages of a score over 800

Thank you Mike for this information. As a residential realtor the information that you provide is crucial to a successful transaction for my clients. You are indeed a pleasure to recommend to all of my clients. You are so professional, thorough, conscientious and pleasant to work with. !!

Hi Dane! Wanted to make sure I'm clear on this. Am I right in saying that on whichever remodel is done you still take a loss rather than an increase in value - the ROI will never exceed 100% of cost?