Do You Need A Realtor To Buy A Home
Comparable homes that were recently sold, known in real estate as comps, are how real estate agents get a feel for the realistic price for a home. How long homes were on the market and whether homes are selling for above or below list price will help you gauge the level of competition in the area, which in turn will help you decide when and how high/low to make your first offer.
do you need a realtor to buy a home
In tough times, most people are looking to cut costs any way they can. And in a home purchase, who wouldn't want to save that extra 3 percent -- an extra $3,000 per $100,000 of the sale price? That's typically what buyer's agents make on real estate transactions, and most experts think it's money well spent.
It's true that anyone can shop for a house, and even get a peek inside, without formally signing on with a real estate agent. But unless you have time to make home shopping a part-time job, an agent might be able to match you with the perfect property much faster.
Say you want a swimming pool. Or don't want a swimming pool. Or maybe you want a fenced-in yard for the dog or a basement playroom for the kids. If you're looking for something specific, a real estate agent is the person whose job it is to know if there's a house out there to fit your needs, and he or she will hold your hand through the deal to boot. Let's look at some of the top benefits of using an agent to buy a home.
Not only can agents provide all the data on local home sales that you want to see, but they can also bring assets to the deal that come from years of watching waves of transactions in the neighborhood.
Often, the touchiest part of a real estate purchase involves the delicate dance of requesting repairs. A real estate agent will be able to identify trouble that you may not see, as well as recommend a good independent home inspector who will provide a detailed report on problems with the house.
In many cases, it depends on you as the buyer, too. An agent can read the situation and suggest what would work for you. "Each buyer has a different tolerance for what they need to do," says Elizabeth Mendenhall, the 2011 vice president of committees for the National Association of Realtors. "Some need [a house] to be in a better condition."
Though most homes for sale are widely available for buyers to assess on Web sites, in some cases, sellers don't want the fact that they're selling to be widely publicized. In those cases, only the real estate agents know the houses are for sale.
Sometimes health problems, financial problems or divorce factor into the need for privacy. Or sometimes, people don't want the sale advertised during the holidays. Either way, working with a real estate agent gives you access to homes you might otherwise miss seeing.
If you want to buy a charming little house near a business district and turn the front parlor into a candle store, you need to know if the city will allow it. Typically, an experienced real estate agent is familiar enough with local zoning ordinances to make sure you don't buy the wrong house.
Buying a home without the guidance of a real estate agent might make sense if you have a strong handle on how the process works and confidence in your ability to navigate the deal on your own. Here are some common reasons for buying a house without a Realtor:
Purchase or refinance your home with an FHA loan. You can get one with a down payment as low as 3.5%. Browse through our frequent homebuyer questions to learn the ins and outs of this government backed loan program.
When you build your home, you are assigned a construction manager. You will be in contact with this person for 9-15 months. You place your confidence in them and trust that they will do a good job for you.
For example, not all electrical panels are created equal. Since most of us use computers or have home offices, we use power on demand, which may mean your electrical breaker is going to trip every time your printer turns on.
I have already put a small amount of earnest money on a new build from LGI homes in Cape Coral Florida. Since I am just now reading this article and did not get a realtor previously, would it still be to my advantage to have a realtor at my walk through and closing.
If you are working with a realtor exclusively, then you will likely be in a client relationship. This means that the realtor is in a working relationship with only you at any given transaction (and not with the seller), and that they owe you a fiduciary duty and loyalty.
While there is no legal requirement that you use a real estate agent to help you buy a home, it is important to understand what a realtor does when both buying and selling property as well as what being unrepresented in a real estate transaction truly entails.
Limited dual agency means that one agent (usually the listing agent) represents both the seller and the buyer as clients. In British Columbia, limited dual agency is mostly banned with the exception of very few cases. (i.e. rural areas with no option of another realtor)
Like ice cream, everyone has different tastes when it comes to the ideal home to purchase. Before spending hours online looking at hundreds of photos of houses for sale you need to know what you want.
A single person has different needs than a family. A smaller home makes sense to a single person unless he or she wants to raise a growing family. Either buy a home with enough rooms to raise a family right away. Or, buy a smaller home with room to expand.
The cost of a new home separates the wealthy from those with fewer means. Everyone probably would like to live in a mansion, but few can afford one. An all-cash buyer carries more clout than someone with a small down payment relying on a large mortgage loan.
Ever read an MLS listing description? You might need a dictionary for some of the legal jargon and terms used by Realtors. For example, the San Diego MLS contains these abbreviations you might not understand like:
This is one benefit that Realtors provide you. A Comprehensive Market Analysis (CMA) comparing nearby recently sold homes with similar features like size, number of bedrooms & bathrooms, and a swimming pool. The CMA helps you to determine the fair price of similar homes you see.
In 2016, one of the largest home building companies in the country set aside over $400 million for buyer legal claims around poor craftsmanship and construction, even when the materials were clearly outlined in the contracts.
You will likely be required to put anywhere from 5% all the way to 33% of the total cost of the home upfront and then make subsequent payments throughout the process. Without a seasoned agent by your side, you could be agreeing to a payment schedule that conflicts with the structure of your loan.
After you complete the home, additional costs like landscaping, window treatments, and appliances will come into play. New construction homeowners pay between $3,000 and $15,950 on average to build out the landscaping of their property., though some builders may include front-yard landscaping or be willing to negotiate partial landscaping. With those numbers in mind, Charron works with her clients to create a holistic budget for their new builds.
Request a single point of contact. This person could vary from builder to builder and could be the sales representative or even a construction manager. Whomever it is, ask for the same person to communicate with you and establish a communication timeline throughout the build process.
A good real estate agent will have access to neighborhood data, including comparable sales, local history and neighborhood demographics. They should also understand the current market and set realistic expectations for your home buying timeline and price point.
The home buying process can be complex, but you may want to consider buying without an agent or REALTOR if you know the seller or have previously taken out a home loan and know what to expect and how to prepare for closing. Just make sure you and the seller are clear on the price, closing date and contingencies and you have it all in writing.
While starting your home buying journey with a real estate agent may be ideal, you can start out on your own and work with an agent later in the process. Just make sure to meet with several agents and choose the one who best understands your needs and goals.
Andrew Dehan is a professional writer who writes about real estate and homeownership. He is also a published poet, musician and nature-lover. He lives in metro Detroit with his wife, daughter and dogs.
If you are not represented by a real estate agent, you will need an attorney to assist you with the negotiation, legal documents required to submit an offer, and to represent you at the closing of the purchase. You will also need to take care of having the property inspected and appraised.
Real estate agents are experienced in both buying and selling homes. They can also help you understand what homes are selling for in the area you are interested in and can help you purchase a home that is within a reasonable market price for the area.
Your real estate agent is there to advocate in your best interest. While a builder's agent would be more than happy to help you do the paperwork on a home purchase, they ultimately work for the builder. Their fiduciary responsibilities to the builder and the builder is the one signing their paychecks. With that in mind, they're going to have the builder's best interest in mind.
When you hire a real estate agent to help you through the transaction, you know that you will also have someone advocating for you during the transaction. You'll have someone there to make sure that you get what you need out of the deal.
When you're buy a new construction home, a great real estate agent can negotiate with the builder on your behalf and make sure that your money is also protected by the contract. Plus, if there are any issues during the transaction, they can help you should any problems crop up. 041b061a72