The Advantages Of Using A Buyers' Real Estate Agent
While many Americans appear to be favoring the concept of "do-it-yourself," SmartMoney reports it may not be the wisest choice to apply that line of thinking to home buying. According to SmartMoney, the increased presence of online real estate listings and the rapid-fire way consumers can obtain and consume information lead some to believe they can buy a home on their own. However, those home buyers may be denying themselves significant advantages by not using a real estate agent.
It helps to have an ally
By hiring a buyer's agent, a home buyer can align themselves with a partner who can negotiate on their behalf, find a home that suits them best and walk them through the process from start to finish, according to SmartMoney.
A real estate agent can make informed suggestions
Home buyer's may think they have a good grasp of the local market, but any number of factors can make one property a better choice than another. A buyer's real estate agent - particularly one that has a deep knowledge of the local market - can point home buyers in the right direction, providing them with an idea of how much they can expect to spend and finding them a property that suits their budget and desires, reports SmartMoney. A home buyer's agent can also recommend a home inspector, help lay out certain concessions to ask of the home seller and arrange a written offer that suits the home buyer, according to Investopedia.
Most times, an agent's fees are folded into the sales price
According to SmartMoney, a home buyer may think they are saving money by not using a buyer's real estate agent. In reality, the seller most often pays for a real estate agent's services, and the buyer's real estate agent generally splits the commission with the seller's agent, SmartMoney reports. A buyer's real estate agent has the knowledge and expertise to benefit the home buyer at the negotiating table, which could make it a smart move to hire one.
Preemptive Steps To Ensure A Home Sale Goes Through
According to MSN Real Estate, home sales aren't always completed simply because both the home buyer and home seller have agreed to terms. Many factors out of each party's control can result in a scuttled home deal, a scenario that can quickly lead to home buyer discontent and home seller frustration. However, MSN Real Estate reports there are a number of preemptive moves a home buyer can make to minimize the chances of a blown deal.
Work with a local buyer's real estate agent
Working with a real estate agent who has knowledge of the local area can give home buyers an advantage if there's a problem with the home's appraisal, according to MSN Real Estate. Appraisers are brought into the picture by a lender to determine a property's value, and they do so by comparing nearby home sales. However, there are ways for this information to become distorted, especially if the appraiser that has hired for the job is not entirely familiar with the area, MSN Real Estate reports. The National Association of Realtors (NAR) reports 10 percent of home sales can be delayed by this issue.
Employing a local real estate agent can help mitigate this problem, because they have the knowledge to offer an appraiser comparable data. Their familiarity with the recent sales of homes of similar size and floor plan can help bring the appraised value of the home back in line with what the home buyer and home seller agreed upon. MSN Real Estate reports there have been instances in which a local real estate agent's knowledge helped mitigate a problematic appraisal.
Lock up financing concerns well ahead of time
Home buyer's are advised to clear away major financial issues - such as poor credit scores and improve savings for a down payment - at least a year before they buy a home, according to MSN Real Estate. Additionally, home buyer's should secure a preapproved mortgage before they buy a home and work with their lender to be sure under which conditions their mortgage has been approved, MSN Real Estate reports.
Protect the investment
MSN Real Estate reports home buyers can protect their home purchase in a number of ways. A home inspection can ensure the home they are buying doesn't have any major maintenance issues, and title insurance can protect the home buyer's claim of ownership. According to MSN Real Estate, it's not unprecedented for a property's title history to have some sort of error, sometimes as the result of an unpaid lien or a disputed title claim, and title insurance will protect the home buyer in that scenario.