While DIY ventures can be rewarding in many instances, such as creating a new bookshelf, constructing a backyard shed, or fabricating unique Halloween costumes for your children, when it comes to home buying, you may wish to think twice. As per the National Association of Realtors (NAR), a meager 11 percent of home buyers decided to purchase homes independently, without the assistance of a real estate agent, in 2019. There are compelling reasons behind this trend. Engaging a real estate agent can provide immense value, greatly surpassing the effort and cost required to navigate the home buying journey solo. Let's delve deeper into the topic.
Insight into the Market Collaborating with a real estate agent endows you with a partner who is not just an agent, but also a marketer, advisor, local neighborhood connoisseur, and a guide to the complex process of home buying. Though you can accumulate considerable knowledge by exploring online resources, a real estate agent's insights can help you sidestep potential pitfalls and secure the most advantageous deal. They possess a thorough understanding of current market dynamics and have exclusive access to resources beyond the average home buyer's reach. Working with an agent also means that you remain at the helm. You have the liberty to choose the right agent for your specific needs, ensuring they align with your long-term goals. Remember, there's a distinction between a real estate agent and a Realtor. An agent is a licensed professional who assists in property transactions and may specialize in either buying or selling. In contrast, a Realtor is an agent who is also a member of the NAR and adheres to an extensive Code of Ethics, adding an extra layer of trust for buyers.
Conserving Time The home-buying journey involves more than just browsing and selecting properties. It requires meetings with licensed lenders for financing, scheduling visits to prospective homes, making offers, arranging appraisals, negotiating repairs post-inspection, among many other tasks. A real estate agent serves as your central command, ensuring all tasks on your checklist progress smoothly from the stage of contemplation to moving day. Choosing an agent who can act as both the listing and selling agent can further alleviate stress by streamlining communication.
Balancing Investment and Returns It may seem financially prudent to sidestep the typical 6 percent commission costs by selling independently. In fact, according to a 2019 NAR study, 63 percent of "For Sale by Owner" sellers who were unfamiliar with their buyers did so to avoid this commission. However, the same study revealed that independent sellers received an average of $200,000, whereas agent-assisted sales averaged at $280,000. This means that even after deducting a 6 percent commission from the latter ($16,800), sellers working with an agent still gained significantly more.
Preventing Legal Complications Choosing not to engage an agent also means forgoing their professional advice and representation, potentially leading to legal problems due to improper paperwork or misrepresentation. Hiring a real estate attorney could mitigate this risk to some extent, but the buyer and seller would still need to manage the title and escrow process independently.
Final Thoughts Whether you're planning to buy or sell a property, we strongly recommend seeking the guidance of an experienced and knowledgeable real estate agent. Be sure to conduct thorough research to find the right agent to meet your specific needs.
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