“For Sale by Owner”… If you see a sign like that outside of a house, how tempted are you to view the property or engage with the homeowner? Buying a house directly from a non-licensed seller is certainly an option, but unless you are a real estate expert, it can be a risky proposition.
Paying Commission
It’s the home seller, not the buyer, who’s responsible for paying the agent a commission with a portion of the selling price, and that’s what most owners who choose to sell their own properties want to avoid. Since there is no cost to you, the buyer, it’s to your advantage to have a realtor represent your interests.
Multiple Listing Service (MLS)
An MLS is a source of up-to-date information on every home listed by agents in your market and every licensed real estate agent has access to this service. It is, without a doubt, one of the biggest advantages of having your own real agent when you want to buy a house.
Budget and Finances
If you’re not sure how much you can afford to pay for your new home, an agent can use tools like a specialized budget calculator to help you make that determination and will encourage you to get pre-qualified for a loan before you start shopping around.
Viewing and Assessing Homes
Your agent will make the arrangements with home sellers for you. He’ll also walk through the houses with you and help you assess whether or not the property and area will fit your needs.
Legal Issues
There are a host of legal aspects of buying a home that average people just wouldn’t have knowledge of, but they’re covered in the contract with your qualified, licensed real estate agent who will guide you through the labyrinth, making sure all your bases are covered. Some of these include:
- Disclosure: There is a long list of conditions that legally must be disclosed, but unless a seller is a licensed agent, he may not be aware that he is required to tell you about problems with the property.
- Home Inspections: The due diligence clause ensures that the buyer is entitled to get an inspection of any aspect of the property he may have concerns about such as pests, structure, electrical, plumbing, geography and more.
- Time Limits: There are protection clauses built into your contract that set specific time limits the sellers must meet. This allows you to get out of the deal if they don’t perform as agreed.
Negotiations
An agent’s primary job is to look out for you and ensure that you get the best deal possible and part of this is having the ability to negotiate with the seller. He will help you factor in aspects of the sale including closing costs, appliances, repairs and a host of other considerations. He’ll also handle writing up the offer and presenting it to the seller’s agent.
Connections
A good realtor can help you build the team you’ll need to purchase the house you want to buy, including inspectors, mortgage and title experts, and tax and legal professionals.
Conducting the Deal
Once you’ve signed a purchase agreement on a house, you’ll have a limited amount of time to get a lot of things accomplished. Your agent will help orchestrate the buying process, which will guide you and allow you to focus on getting each task completed.
