Do I need a real estate agent to buy a home?

Do I need a real estate agent to buy a home?

May 05, 2020
Blog

Nowadays with all the technology facilitating the customer in the pursuit of their dream home, many believe that Realtors are no longer necessary. That may sound true, however, you benefit so much more from having one rather than not. Here’s why:

  • It doesn’t cost you a thing. There is not an upfront cost charge to working with a Realtor. A Realtor’s compensation is 100% commission based and they do not receive any pay for the work they do until a sale is made and escrow is closed.
  • An expert guide. Selling a home usually requires dozens of forms, reports, disclosures, and other technical documents. A knowledgeable expert will help you prepare the best deal, and avoid delays or costly mistakes. Also, there’s a lot of jargon involved, so you want to work with a professional who can speak the language.
  • Negotiation knowledge. There are many factors up for discussion in a deal. A Realtor will look at every angle from your perspective, including crafting a purchase agreement that allows you the flexibility you need to take that next step.
  • Objective information and opinions. Realtors can provide local information on utilities, zoning, schools, and more. They also have objective information about each property. Realtors can use that data to help you determine if the property has what you need.
  • Property marketing power. Property doesn’t sell due to advertising alone. A large share of real estate sales comes as the result of a practitioner’s contacts with previous clients, friends, and family. When a property is marketed by a Realtor, you do not have to allow strangers into your home. Your Realtor will generally prescreen and accompany qualified prospects through your property.
  • Up-to-date experience. Most people sell only a few homes in a lifetime, usually with quite a few years in between each sale. Even if you’ve done it before, laws and regulations change. Realtors handle hundreds of transactions over the course of their career.
  • Your rock during emotional moments. A home is so much more than four walls and a roof. And for most people, property represents the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you.
  • Ethical treatment. Every Realtor must adhere to a strict code of ethics, which is based on professionalism and protection of the public. As a Realtor’s client, you can expect honest and ethical treatment in all transaction-related matters.

Do you love paperwork?

Another plus is that your agent will handle a ton of paperwork on your behalf.
Unless you love filling out forms – and have experience in real estate transactions – this is a chore best left to the professionals, who should ensure that everything is done by the book.
You could easily make a mistake with these documents. Mistakes can cause deals to fall apart or (worse) make you liable for an inadvertent breach of contract. (A licensed agent will have errors and omissions insurance to limit this risk.)
An experienced agent will make sure that everything that needs to take place — counter-offers, extensions, appraisal, inspection, walk-through, loan approval — happens when it’s supposed to and how it’s supposed to.

Do you have crazy negotiating skills?

A good agent should have a wealth of sales and neighborhood data to help you negotiate the lowest-cost deal.
A seasoned pro knows what you can buy in your area with your budget, and what constitutes a good deal. He or she knows how to formulate tempting offers, when to play hardball, and when to walk away. This expertise is especially helpful in neighborhoods where home values vary widely from block to block – or in seller’s markets.
Most home buyers think agents are worth the price, according to the National Association of Realtors (NAR). In 2016, 87 percent of home buyers purchased through a real estate agent. Of these, 89 percent said they would use the same agent again or recommend her to others.

Unless you’re a genuine expert in negotiating real estate deals, follow your agent’s advice.
(Remember: most sellers are also represented by agents, and experienced negotiators tend to eat amateurs for lunch.)
If you’re a first-time home buyer, your agent will help you avoid newbie mistakes – such as skipping the home inspection or giving away your bargaining leverage by disclosing too much personal information

 

The qualities of a good real estate agent as valued by the consumer vary by their needs. Overall, technology may be good, but it can never replace a great Realtor representation and experience.