When it’s time to start searching for a new home, you may wonder whether you really need a real estate agent. After all, with google, siri, zillow and so many online resources it may not seem necessary.
Like other skills (carpentry, plumbing, dentistry) there is certainly something to finding good real estate representation. A good agent becomes your advocate and, in most cases, will secure a much better deal than you could get yourself. For a more detailed read on how this actually plays out, check out this article on Single Agency vs Transaction Brokerage.
Here are a few reasons why a real estate agent is vital when purchasing a home (I’m not biased at all)…
Hiring a skilled real estate agent to help you find and secure a new home is putting an expert negotiator on your side. They not only have the skills to negotiate for you, but practice these skills daily.
Along with negotiating power, a real estate agent gives you a buffer. You can vent to your agent about the features of the home you don’t like without offending the seller.
Your agent can also take on the role of the bad guy, if necessary. Sometimes, a transaction needs a scapegoat, or an outlet for the seller to blame a transactional hiccup on. Rather than the seller reacting negatively towards the buyer and potentially blowing the deal, the real estate agent takes the hit and keeps the train on the tracks.
If you were to enter into negotiations for the home of your dreams, without an agent, would you be able to keep your emotions out of it?
Unless you grew up in the area you are buying a home in, you probably don’t have the same local knowledge as a top local real estate agent does. Hiring an agent will give you access to first-hand knowledge of the local market and the local area. The knowledge they bring to the table may be just what you need to find the right neighborhood, right home and get the right deal.
Access to Homes
When you try to find a home to buy without an agent, you won’t gain the same access as an agent can give you. Some sellers don’t like to publicize the fact that they are selling. However, they may have given access to this information to a handful of top agents in the area. These are referred to as “pocket listings” in the industry.
Handling all of the Paperwork
Do you understand all of the paperwork that goes into a real estate transaction? If you mess up on the paperwork for your car sale/purchase it may cost you a few hundred dollars, but an error on a real estate transaction could cost thousands (and I’ve seen it happen). The documentation can seem endless, from offer to counteroffer to addenda, repair agreements, settlement statements, and the list goes on.
For the average person, the paperwork alone is enough to make buying a home overwhelming. A real estate agent provides an expert capable of handling the paperwork and explaining it to you. They will ensure nothing is missed and the deal doesn’t go south due to paperwork problems.
Nothing Gets Missed
Yes, real estate agents are human and they do make mistakes, occasionally. However, they are professionals and deal with all the ins and outs of buying and selling homes on a daily basis.
When you hire a real estate agent, you are less likely to run into an issue with the transaction. They will make sure things, such as the home inspection and appraisal are handled properly by trained professionals you can trust.
Buying a home without a real estate agent could lead to getting sucked into trusting the seller too much. They may skip the home inspection or choose somebody you cannot really trust. With an agent, you won’t have to worry about any type of shady business happening because you trusted somebody you shouldn’t.
Saves you Time and Money
Of course, the main reason you should hire a real estate agent is the time and money saving benefit. With a professional real estate agent on your side, you won’t have to take on the massive time commitment of buying a home. They will do all the behind-the-scenes work for you, which will save you plenty of time.
Along with the time saving benefit, most real estate agents will be able to save you money. Since they can negotiate a fair deal for you, you’re more likely to get a better price with an agent than without. Beyond that, as a buyer the agent’s services are typically free to you. In most cases the seller has already negotiated a commission offering and will pay that amount regardless of whether you have an agent or not. So, why not have someone on your side?
There are several reasons why hiring a local real estate agent is necessary when you buy a home. Unless you have extensive experience with real estate transactions in the area you plan to buy a home, an agent gives you the opportunity to find and ink the best possible deal on your next home.
Originally posted 2015-07-30 13:12:29.