Why do I need a real estate agent when buying a home?

There are many reasons that Real Estate Professionals are pivotal in the home buying process, and as a buyer, sometimes you may question the necessity of an agent. You may even believe it this is a process you can complete on your own. Here are some ways that agents are beneficial during the home-buying process.

1. Real Estate Services are FREE to buyers

The service of real estate agents are free to you as a buyer, meaning whether you decide to have a buyers agent or not, you will still pay the same amount for your home, so using our services is a no-brainer. I mean, they are free to you. You may be wondering “How can that be true?” The seller has already agreed to pay their agent a specific commission in order to sell their home. That listing agent will then split their commission with whatever buyers agent that finds a buyer for the home. If that listing agent does not have another buyer’s agent to split with, then that listing agent gets to keep the full commission. From a monetary standpoint, it does not benefit the buyer to not have an agent because that money will be for that listing agent regardless. So it’s like, why wouldn’t you use the guidance of a professional when it is free to you as a buyer? Why not use someone that can help you along the way and look out for your best interests?

2. Access to/ Information about Listings

Real estate agents have access to the multiple listing service, which lists many available homes. We also network with other agents and investors, and may be aware of off-market homes that are available. This allows us to be able to tell you about homes that may not be about to be listed. My company actually goes the extra mile in locating properties for our buyers and will seek potential listings from homeowners who may not have yet placed their homes on the market. We go in search of properties that our clients may prefer and look for sellers who may be interested in selling their home. We believe in going that extra mile.

An agent can also take you on tours of homes to view properties that are for sale. When you’ve found “the one,” we can help you negotiate an offer on the home of your choice and we can prepare a comparative market analysis- an examination of sells prices of similar properties in the same area. A comparative market analysis is valuable for buyers, because once you’ve found a home that you like, you want to be certain that the sales price is a reasonable price and that the house will appraise for close to that amount. You don’t want to pay way too much for a home, right? Real estate professionals can tell you sales price of homes recently sold homes in the area and let you know if the listed price is within a reasonable range.

3. Contract Negotiation

Real estate agents also prepare the contract for you and negotiate terms. Perhaps, you want your sellers to pay some of your closing costs or to provide a warranty; your agent can help negotiate those terms. As agents, we want to make sure that all deadlines are met. We help ensure inspections, appraisals, and all those items are completed. At times, a home inspection may deem necessary repairs be completed. Your agent can go back and renegotiate the terms of your contract. An appraisal of the listed home may cause some terms of the contract to be renegotiated and your agent can assist with renegotiating those terms.

4. Help Streamline the Process

We keep in contact with the title company throughout the process and are there with you for the final walk-through- which is right before closing. This walk-through allows you to go through that home one last time and give it a look around to ensure all agreed repairs have been completed and it is in acceptable condition for close. I once had a buyer who went for the final walk-through the day before close. Although we had just viewed the property a few days before, it had rained over the weekend, and a few of the panels on the fence had fallen off. While that was not a huge issue, it was something that had to be repaired prior to closing. If we had not done that final walk-through we wouldn’t have known about the fallen panels and that would have been the buyers responsibility. It is convenient to have an agent for any sort of last minute crises.

5. Industry Knowledge

Agents are also well connected and can place you in contact with a list of preferred lenders, contractors, title companies and inspectors. Occasionally there are issues that may arise during the contract to close process and agents are typically familiar with such issues and can help guide you along the way. A knowledgeable agent can help keep you informed about the process and can also help coordinate possession- the date and time the seller will leave and when you’ll move into the home. I also like to personally gift my clients with a little something as a thank you, because I do appreciate them.

So buyers agents are essential and a good one is going to work hard for you and ensure that you are well informed. Be certain to have a knowledgeable agent so that when you’re asking questions (about down payment assistance programs, home/neighborhood details, the closing process, etc.) they can give you valuable information. While there is no one with all the answers, you want to be sure to have an agent who will work hard to get the answers for their clients.