With shows like BravoTV’s Million Dollar Listings New York, Los Angeles and Miami the perspective of a Real Estate Agent or REALTOR is pretty impressive. Big houses, expensive clothes, fast cars and tons of money on commissions. Last month, in the Baltimore Metro area the average sold price for a three bedroom townhome was $172,676.00 and for a 3 bedroom single family home was $244,773.00. Out of 539 transaction of 3 bedroom single family homes sold, 24 were above $500,000.00! That is only 4%!
What does that mean? REALTORS earn about the same as you do! The difference is that our profession is about providing a home to our clients, or a business location for your growing business. Like with anything, it’s about the effort you put into your work that will make the difference in your paycheck. Like when buying an expensive item, such as the newest television or a car, you will do your research but ultimately you will ask the expert. The expert that has been to the factory where the car or television that is being made. For a REALTOR is the same BUT BETTER! Why is it better? Because the sale of real estate is regulated by the state and federal government for YOUR protection.
In the state of Maryland a REALTOR or Agent, must be licensed and affiliated with a licensed Broker. Meaning the Agent cannot work on their own. An Agent has to be affiliated with a company like Long and Foster, Coldwell Banker, ReMax or Berkshire Hathaway HomeService. There are other real estate brokerage that are smaller that can and will provide the same services as the big national franchises. The most important aspect when learning this information is that when you hire an Agent you are the Broker’s client, the Agent is a representative of the Broker to help you during your transaction.
For example, if you choose to hire me as your Agent when either buying or selling your home, I will represent you but you are a client of Berkshire Hathaway HomeServices PenFed Realty. My Broker’s responsibility is to make sure I follow the law and represent you as best as we can. Both the Agent and the Broker has to take classes in order to renew their license every two years and the Maryland Real Estate Commission oversee the rules and regulations of all real estate transactions in the state of Maryland. This has been created in order to protect the public of anything and everything that can cause the client to lose money and to make the real estate profession an honest one.
Are the services of the REALTOR free? If not, who pays for them? A REALTOR is paid, a great number of times, by the seller. Sometimes, the buyer pays the REALTOR. Please understand that there is no law regulating how much you need to pay your REALTOR but you should NEVER EVER pay your REALTOR in advance. A honest law abiding REALTOR will get paid when the transaction closes. Meaning, when you get or give keys to the home at settlement. Some brokerage firms ask for a “broker’s fee” which is typically between $250 up to $500 per transaction which covers the cost of doing business. Again, this fee is also paid at settlement. It doesnot matter if you want to see 100 houses and decide you will move out of state, you will NOT PAY ANYTHING UNTIL THE DATE OF SETTLEMENT!
You might ask yourself that if you can see houses for sale in the newspaper or in the Internet, why do you still need the assistance of a REALTOR? Did you know the average contract is about 30 pages long? Did you know that you may not be able to do a home inspection if you forgot to tell the seller you wanted to do one? If you are buying a home, did you know you can ask the seller for closing cost help? If you are either selling or buying a home do you believe your house is priced correctly? Are you paying too much for a house? Could you get a little bit more money if you sell your home now?
All these questions and more are answered by a licensed REALTOR. We have access to accurate available listings in the state of Maryland. The REALTOR we will write an offer for the house you want, as well guide you in explaining the contract. We will make sure we protect you in making sure you have the right to inspections and inform you of any defects inside your future home. Coordinate the home inspections as well as negotiate any repairs. We will also assist you to get the house for the best pricing as dictated by the market.
Think about it this way, you own a pizza shop and a friend calls you and asks you to use your oven to cook their frozen pizza. You are capable to buy or sell your home on your own but wouldn’t you rather hire an expert?
Nathalia N. Cruz-Edmonds is a REALTOR with Berkshire Hathaway HomeServices PenFed Realty. To schedule a meeting call direct (410) 350-5848, at her office (410) 464-5500 or via email at nathaliaedmonds@gmail.com. She is also the owner of Clearview Real Estate Management LLC a third party real estate management company in Maryland.
