Buying a Home Without a Real Estate Agent
Can Cost You Big!
Finding a home that is priced below market value and navigating
through the mechanics of the real estate transaction are not easy! If you have a
tax question, or need legal advice, you seek a professional. When it comes to
finding the right house for hundreds of thousands of dollars, and making sure
the transaction goes smoothly, you need your real estate professional!
Best Part Is, It doesn’t
Cost You A Dime!
When you a buy a house through your real estate agent, she or
he is taking care of you at
no cost to you. The seller typically pays your agent, so you get
representation for free! That’s a bargain, considering all of the service your
agent will provide for you:
Finding Your Home
Your real estate has access to the right resources and networks
to find homes that are “undervalued”. Of course, you can find homes on the
Internet or through local ads . . . but houses that are placed on the market below market value often don’t ever make it to the MLS, let
alone the Internet! Real estate experts know that less than 15% of the homes
sold in America are ever advertised in the newspaper or in a magazine. Your real
estate agent is privy to these “steals.” She or he is in constant contact with
the other agents who have listings coming onto the market. Working through your
agent, you can get “first crack” at these properties before they are advertised
to the public.
In addition, your agent can find you the “right” home while
you’re at work and tending to your other responsibilities, and show them to you
at YOUR leisure! What’s your time worth? Your agent can save you plenty of time!
Making the “Right” Offer
And Negotiating
A lot of thought and analysis needs to go into your “offer”.
Factors like comparable properties on the market, recently completed
transactions, location and the seller’s circumstances all play a part in the
amount of the offer. Your real estate agent will help you present the most
reasonable offer. In addition, your real estate agent is an accomplished
negotiator who can make sure the deal moves smoothly to closing (making sure the
deal doesn’t fall apart is critical!)
Obtaining Financing
Most real estate agents work closely with one or several good
lenders. Your real estate agent can help explain the myriad of loans (VA, FHA,
Conventional, ARMs, etc) and set you up with a good mortgage lender. This person
will help steer you through the application process and the paperwork maze. Most
importantly, this person should help get the best loan for you. Take advantage
of your real estate’s team – which usually includes a good mortgage lender.
Due Diligence &
Settlement
Due Diligence is the process of trying to discover potential
problems in the house you are buying before you buy. These problems can range
form structural or cosmetic (for example, termites or leaky roof) to problems
with the title, taxes or homeowners association. Your agent has experience
uncovering these problems, and can save you a lot of money and grief.
Furthermore, your agent typically has preferred structural and termite
inspectors that are a part of her or his “team.” This inspector can help uncover
any problems that may cost you money and grief later on. Also, your agent will
make sure you bring everything you need (paperwork, the exact monies, etc.) to
the settlement table. They’re job is to make sure the settlement goes smoothly!
Building A New Home
Many new homebuyers erroneously believe that if they buy a home
from a builder without going through a buyer’s agent, they will save money. The
fact is, most builders pay a commission, and if you do not use an agent, the
builders simply keep that money for themselves as profit. The worst part is, in
this case, you will forgo FREE representation!
Negotiating without representation can be a disaster! Most
builders do not fall under state real estate commission laws, and therefore do
not have to use approved commission purchase contract forms. Most likely, the
builders had their own purchase contracts drafted in their own interest . . .
NOT YOURS. Most real estate agents are familiar with these contracts, and can
recommend inclusions are exclusions to save you trouble. Agents can also help
negotiate important points like “final walkthroughs”, contingencies, and closing
dates. Best of all, real estate agents have experience negotiating, and may for
example, be able get the builder to do upgrades at no additional cost!
Be certain to work with a broker that can act as your advocate.
Most states have a broker relationship known as a
buyer’s agent. Avoid working with agents that are neutral such as
transaction brokers, dual agents or seller’s agents and sub agents, as they do
not represent you. Become familiar with the types of agency available to you in
your area and ask your real estate professional to guide you.
I hope this informational report was informative. As your local
real estate professional, I am constantly aware of “good deals” on the market,
and can help you determine what type of house and location is “right” for you.
You can call me at any time for advice, and please remember that you are under
no obligation or pressure of any kind.
