Three Reasons Why You Need a Real Estate Agent When Buying a House
By Adam Hashian
Buying a house can be a difficult process if you are not familiar with it. The internet has changed the way the process works, giving buyers much more educational information at their fingertips. Now some buyers may think they can handle the process on their own. Although not every situation is the same, it is almost always in your benefit to hire a real estate agent to help you buy a house. In this article we are going to explore some of the best reasons why having a real estate agent will actually save you money, and make the process easier and more enjoyable in the long run!
Do Home buyers Pay the Commission for the Buyer’s Agent?
This is a little known fact, but when you are buying a house, it is the seller who pays the commission to the buyer’s agent. When the offer for the house is submitted, the buyers do not have to pay an extra commission on top of what they already agreed to buy the house for. The commissions for both the buyer’s agent and the seller’s agent are deducted from the total of what the home seller will receive. In this way, having a real estate agent to help you buy a house is actually free for you! There are some objections that say if you choose to buy without an agent, sometimes the seller’s agents will reduce the price of the commission that would have been earned by the buyer’s agent. This would not make sense for a few reasons. The seller’s agent has a chance to make both of these commissions by acting as a dual agent, and their original fiduciary duty lies with the seller, so it would be unethical for them to negotiate the price down further for you in some situations. Dual Agency deals can be very easy and smooth depending on the overall cirumstances and the particular agent involved.
Finding a Real Estate Agent That Knows the Market
A good real estate agent knows their market area very well, and can honestly determine a good deal from a bad deal. In certain housing markets, like Boston, San Francisco, and New York; good deals only last for a week on the market. You might think your real estate agent is using pressure sales tactics when they say,“This is a great deal and will not last long, if you’re interested you should put in an offer.” Almost always this information is the truth however, because in the past they have worked with clients who have lost the opportunity to buy their dream house because they felt they could wait, or play negotiation games with the seller. Some deals really do last for just a week, and then they are gone as quickly as they appeared. Having a good real estate agent on your side that has seen thousands of homes, and completed hundreds of deals, means you can rest assured that they are well cultured in the art of closing. When a good deal hits the market they will let you know, and you should be thankful that they helped advance the process quickly.
Is the Closing Process for Selling a Home Difficult?
A good real estate agent understands the entire process of purchasing a home after the offer is submitted and accepted. They can guide you through the home inspection, the purchase & sale agreement and the closing so that you do not have to worry about it. If you’ve never been through a home inspection before, you may not understand what is a real issue and what is something that is superficial. A good agent can inform you of these, and even go on the inspection in your place. It will save you time, and lots of hassle to have someone working for you through this. A good real estate agent can spot fishy terms that may be included in a purchase and sale agreement, something that might slip by a novice buyer. Not to mention, you don’t have to pay for these services!
As you can see, hiring a real estate agent to guide you through the process of buying a house can be invaluable. Not to mention, it’s free for the buyer! The amount of money a good agent can negotiate off a home price is usually more than their total commission. They know when a deal is hot, and when you should jump on an opportunity. They also know how to close out the deal so that all the excitement of getting an offer accepted is not wasted by having the deal fall apart after that acceptance. If you’re looking to buy your first home, it is in your best interest to contact an experience real estate agent in the region you are interested in buying.