The modern era of computers gives you so much advice and many tools to help you carry out real estate transactions on your own. Many, in fact, prefer doing things without the aid of a real estate agent to avoid paying them their commission. However, as buying or selling a house is a major process, read on to find out why you still need a real estate agent.
You may be buying your first or second home, but real estate agents are always involved with people buying and selling houses. They will know about the different properties available on the market that fit your budget and needs.
They will also be able to get in touch with the sellers’ agents to set an appointment for you to view a feasible house. If you opt to do this on your own, you have to make your arrangements, which can be difficult, especially if you are looking for homes for sale by the owner.
Similarly, if you opt to sell your home on your own, you will have to answer calls from potential buyers and fix appointments. You risk missing a few potential buyers when busy or may fail to respond quickly to their calls. There is also a chance of your fixing an appointment only to have no one show up.
Contracts Are Not Easy To Understand
People buying or selling a house use the offer to protect contract to protect them, and ensure they can cancel the deal if necessary. So if the house you intend to buy has a mortgage, but hasn’t listed financing as one of the sale conditions and you don’t get approved for the mortgage, there is a chance of your losing your deposit money for the house.
There is also the risk of the seller suing you for your not fulfilling your part of the contract. Real estate agents regularly handle such contracts with similar conditions. They know which terms to use, remove and how to use the contract to your benefit if you want to sell or buy a home.
It’s Not Easy Making Negotiations
Some people do not hire real estate agents thinking that they will be able to hold direct talks with the buyer or seller. They believe this leads to more transparency where both parties keep their best interests in mind. This may be true only if both the buyer and seller of the transaction are reasonable and can get along amicably, which may not always be the case.
Suppose you want to buy a house but hate its interior. You can express this dislike to your agent, and complain about how much you will have to pay to upgrade the home without hurting the owner’s feelings. Your real estate agent will then tactfully express your concerns and act as a messenger to negotiate discounts without disappointing the homeowner.
In some cases, your real estate agent may also prove to be a helpful mediator and prevent any misunderstandings that can obstruct your deal with your buyer. There is always a chance of a purchaser or seller rejecting an offer for flimsy reasons such as a dislike of the other person.
In such situations, it is the agent who plays the middle person and smooths things over before anything gets out of hand. You have a better chance of buying your dream house. Even sellers benefit from a hard-nosed real estate agents who will be able to express their interests without putting off interested buyers negotiating over the price.
Real Estate Agents Can’t & Don’t Lie
As real estate agents are licensed professionals, they can suffer more severe consequences for lying than a private buyer or seller who lies. So if you hire a licensed real estate agent under an agreement, the agent is bound by law to a fiduciary relationship or in other words, to act in your best interests and not theirs.
Most real estate agents depend on repeat business to build up their clientele and to survive in the real estate industry. They can’t afford to lie, but in fact, do only what’s best for their clients.
If you do find out that your agent has lied to you, you have many options to handle the situation. You can go through your agent’s broker, through professional associations like the National Association of Realtors and even through court if you know you can prove that your agent has lied to you and had acted against your best interests.
Buyers and sellers working together should seek legal counsel as both have to act in their interests. However, there’s not much you can do if you later find out that you had been conned about the home‘s condition or various offers. It’s more expensive having a lawyer on your side every time you meet a potential buyer or seller than paying an agent’s commission for the transaction.
You May Not Always Save Money
Many people avoid hiring a real estate agent to save on paying an agent’s commission. However, a buyer and seller don’t always end up saving money by not paying commission. For example, if you opt to sell your house on your own, you need to sell it at the same price as other similar properties in your vicinity. As most of these properties may have been sold with an agent’s help, the seller keeps the home’s sale price percentage instead of paying it to the real estate agent.
However, buyers who opt to buy a house directly from the seller without involving an agent may make a correspondingly low offer for you. So it’s only if both buyer and seller agree to share the savings that they will be able to save the commission amount.
Of course, this doesn’t imply that it’s impossible to carry out real estate transactions without a real estate agent. There are indeed some who are adept at handling their own real estate transactions. However, you will realize the process is not as easy as you think it is just by taking at look at the many questions on ‘for sale by owner’ websites! It’s always better to have an experienced and professional real estate agent around as you never know when complications may arise in a transaction!