Do I really need a Realtor to buy a house?
Some buyers are not sure where to start when buying a house and have a lot of questions. Do I really need my own agent? Do I call the agent on the sign? How much will it cost me to use a Realtor? These are all common questions, so let’s take a look at these and a few others.
1. Do I really need my own agent? Or Do I call the agent on the sign?
You can call the agent listed on the sign, however, that agent represents the seller. As a Realtor, we are supposed to treat everyone fairly and honestly, but the agent has the seller’s best interest to protect. Therefore, it is wise to have your own agent to protect your best interest as well. By having your own agent, they will know the things you are needing in a home, your budget, and how to best negotiate on your behalf. Your agent will be able to answer all your questions and address any concerns you may have throughout the process.
2. How much does it cost me to use a Realtor?
In most cases it is totally free to the buyer. The Realtor’s commission is normally paid by the seller at the close of the home sale. A percentage of the selling price is split between the listing agent and the selling agent.
Occasionally, a buyer may have to pay the buyer’s side commission if working with a For Sale by Owner (FSBO). Your agent can contact the FSBO and work out the commission details, if the FSBO is not willing to pay the buyers side commission your agent can inform you of this situation. You can then decide to move forward on your own or work out the commission cost with your agent. By continuing to work with your agent, they will prepare the paperwork and guide you through the entire transaction.
3. Will working with an agent really save me time?
Agents show homes and sell homes as their job. They know the market and can answer your questions about properties, sometimes without you having to take the time to go in the home. If your agent knows what you are looking for, they can suggest properties that will fit your wish list. Sometimes your agent may know of new listings coming to the market, allowing you to see them before other buyers. They can also schedule several showings in one day, whereas, if you are doing it on your own, you will have to schedule times that work with each listing agent’s schedule.
4. Isn’t the paperwork just fill-in-the-blank? The listing agent will fill it out for me, right?
When buying a home, you are entering into a legal binding contract for possibly one of the largest purchases in your life. Having your own agent to explain the contract and answer your questions can give you peace of mind, especially if it is your first home buying experience. Your agent will help to inform you of what other homes are selling for in that neighborhood and guide you to make an educated offer.
5. Do agents really negotiate much?
Your agent will help you to prepare a strong offer and aid you in negotiating out the best terms and price for your new home. Agents have negotiated a lot of deals and know the market well. Agents can be highly creative in the ways they negotiate to allow your offer to stand out in the possible multiple offer situation.
So, do you really need a Realtor to buy a house?
While the short answer is, no you don’t need a Realtor to buy a house, however, working with an agent can bring peace of mind during one of the largest transactions you will possibly ever make. Your agent will be by your side throughout the entire buying process guiding the way and looking out for you. There are a lot of real estate agents to choose from, asking friends and family for referrals is a great place to start on the path to buying a new home.
