What Is An Agent
An agent is essentially a middleman used to connect people looking to buy homes with those looking to sell. While it might seem easier to just go find a home on the market for yourself, there are definitely some huge benefits to hiring an agent.
Consider this white-water rafting example. Unless you’re a seasoned professional, you’d probably never go white-water rafting by yourself, it’s too dangerous. You might make it down the river eventually, but you’ll probably get a few bruises or worse on the way. However, with a guide that knows the path of the river and what to look out for, you’ve got a good chance of having a more enjoyable and successful trip.
Agents are like rafting guides. The average person doesn’t know much about the real estate market, making diving in headfirst without assistance pretty risky. The experience of an agent helps to take away some of the risk.
Why Would You Need An Agent?
1. Buying Homes Is Their Specialty
Unless you’re also working in the real estate market, it’s a sure bet that an agent will know more about the home buying process and local options than you will. They’ll know how to handle all the paperwork, know how to explain legalities, and they’ll have experience with the negotiating that occurs during the buying process.
However, if you want the best deal, find a “buyer’s agent.” This basically means that your agent will represent you, the buyer, exclusively for a commission-based fee. This helps you avoid a “dual agency” scenario, in which an agent represents both the buyer and seller of a home. Agents love this because they don’t have to split commission, but imagine how hard it can be to truly get the best deal when your captain is cheering for the other team, too.
2. Agents Are Better At Finding Houses
Sure, the internet has made it easier to find homes without an agent, but if you want access to the best up-to-date information about a specific local market, it’s still beneficial to consult a professional.
A huge portion of a real estate agent’s job is to educate themselves on the homes for sale in certain area, as well as other aspects that might be important, like school systems, crime rates, and future outlook. It will probably save you a lot of time with an agent that’s naturally adjusting your search results for every minor concern versus sifting through endless pages of listings online.
3. Agents Are Trained Negotiators
You might be great at winning arguments, but the negotiations that come with purchasing a home are a completely different beast than what you’re probably used to. Unless you have a high level of knowledge about the real estate industry, you’re going into battle without the proper gear.
A real estate agent that has spent their professional career educating themselves firsthand on various buying and selling tactics in the housing market is going to be a much better negotiator than you, especially when it comes to playing hardball. Unless you’re extremely confident in your skills, it might be best to have a professional on your side. After all, the sellers probably will.
4. An Agent Helps Protect You
With so much knowledge about homes and the local housing market, a good real estate agent will know exactly what to look out for to make sure their clients aren’t getting taken advantage of. For example, what small problems exist now that may resurface as larger problems later? What needs to go into the home purchase contract? Are second opinions needed with an appraisal or home inspection?
You wouldn’t buy a used car without getting it checked out by an expert first, so why would you buy a home without consulting someone who knows what they’re talking about? Obviously a real estate agent won’t be the one crawling underneath the floorboards checking for mold and leaky pipes, but they’ll be able to connect you with other professionals that can help.
Having an agent on your team is a good way to ensure you’ve covered all of the legalities of home purchasing before signing a contract. It can be worth it for some peace of mind, if nothing else.
What’s It Like Without One?
1. Time, Time, And More Time
Before you take on the task of entering the real estate market without an agent by your side, consider how involved the home buying process can be. People build careers on understanding it and perfecting their skills to navigate around this confusing space. As a novice in this field, it will take quite a bit of time and effort on your part before you even start to get the hang of it.
Be prepared to make a huge time investment if you want to find a good deal that’s right for you alone. It’s up to you where you draw the line between how much of your own effort are you going to put in and when it’s time to hire outside help.
2. Technology Has Made It Easier
Years ago, buying a home without an agent was much more difficult. Unless you were literally driving up and down streets looking for “For Sale” signs in front yards, you didn’t really have a way to see everything that was available. Today, the internet has made it much easier.
A quick search will help you find local listings and all of the information will be there making it easy to contact the seller…or at least their agent. It’s definitely possible to go it alone, but if your knowledge of the real estate market is low, it’s probably best to seek outside help or at least outside consulting.
3. You Might Save Money
A buying agent’s commission is usually in the neighborhood of 5-8%, however it’s a question of whether or not their negotiation tactics and the time they’ll save you make up for this. If you hire an agent and they’re not really able to find you any good deals, it might be best to take a step back and go it alone.
It’s all about finding a deal that you’re happy with. There will always be more homes for sale, what’s the rush?
The Bottom Line
Finding the right agent is an important process but it doesn’t need to be a terrifying one. Movoto helps connect potential home-buyers with skilled agents in order to make the process purchasing a home as painless and risk-free as possible.
Movoto agents are required to have a minimum of 3 years experience under their belt, as well as a rate of at least 10 real estate transactions per year. This means they are seasoned professionals who truly understand their industry and their specific markets. Go to movoto.com/agents to begin searching for the right agent for you today.
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