Real estate agents are trained experts who help in linking the buyer to the
seller. A lot of real estate agents also do rentals wherein they connect tenants
to landlords and even maintain the property on the behalf of the landlords. The
real estate agents work by linking together the two interested parties and
charging a commission for their services. For sales, they charge commission only
to the seller but for rentals (i.e. agent managed rentals) the commission is
charged to both parties involved in the transaction. Real estate agents
generally calculate their fee as a percentage of the selling price (in case of
sales) and as part of the rent (for rentals). People, who want to sell/let their
property, leave the details of their property with the real estate agent (and in
fact, even leave the keys of the house so that the real estate agent can arrange
for viewings without them getting into any hassle). The other interested party
(i.e. the buyer/tenant), gets access to this information by contacting the real
estate agent. That’s how the real estate agents become a hub of information.
Numerous home seekers (including real estate investors) use the services of real
estate agents not just for getting good deals but also getting them quick. Since
real estate agents are probably most familiar with the market situation in their
region of operation, it makes sense to approach them to get an idea of the going
rate for properties in that region. Real estate agents would generally know the
prices of various properties of different types and at various locations in the
region.
A property seller can almost always get thousands more for his/her property by
using the recommendations received from a good real estate agent. A good real
estate agent will also analyze the needs of a home buyer/tenant and provide
suggestions on what kind of home could be available to them within their budget.
So a good real estate agent will not just throw a list of available properties
to the buyer/ tenant but will actually discuss their needs and make a
suggestion. This, in fact, works in the favor of real estate agent in two ways.
Firstly, if the real estate agent is able to sell the house they get their
commission and secondly, if they make the buyer happy too they earn a good
reputation (and hence more business).
However, it is worth pointing out that in California real estate agents can work
exclusively for either the buyer or the seller. Or, San Diego can work as dual
agents, representing both buyer and seller. By California law, this agency
relationship must be disclosed prior to signing any contract. Naturally, it is
best to ask about an agents agency relationship during your initial
conversation.