This week, top-producing real estate sales consultant Ted Benner of The Jason Mitchell Group shares four reasons why you should never buy a home without an agent on your side.
So you think you can save Money on Buying FSBO on your own and 4 Reasons You Should Never Buy a Home Without an Agent!
In today’s hot market, buyers and sellers are always looking to save money. Some buyers think that buying a for sale by owner will do just that for them…..but that’s not always the case.
Here are 4 reasons and tips on why you should always hire an experienced Real Estate agent to represent you.
#1 – Understanding How Much You’re Saving On Commission
The typical commission on a home sale is 6 percent. It’s paid by the seller and is split by the agent for the buyer and the agent for the seller — each gets 3 percent.
As a home buyer, you wouldn’t be paying the commission anyway, so why does it matter to you? It’s likely factored into the price of the home.
If you’re going on the basis that an agent isn’t worth hiring, that can make more sense from the home seller’s point of view. Not only do sellers pay the entire 6 percent commission and research has found that agents don’t lead to higher average selling prices and that they don’t sell homes for much more than the initial asking price.
#2 – You’re Losing An Advocate
A home inspection, appraisal, searching for mortgage rates, and other headaches that pop up during a home sale can make an agent’s fee worthwhile. A seller may try to convince you not to have an inspection or appraisal. But if you are financing a home purchase, the bank will require them. Without an agent to help you, you could be negotiating those areas and others on your own.
The seller almost always thinks their home is perfect and doesn’t want to amend the price or make repairs. Buyers almost always feel that they deserve to get a home without any defect in it. That is where the problems arise.
Realtors have stronger knowledge of the fair market cost of home deficiencies and can help resolve them. When sellers and buyers are negotiating only with each other, that’s where more contracts get voided because they can’t reach an agreement
#3 For Sale By Owner Homes Typically Are Overpriced
Any savings from not paying a real estate agent may still not get a buyer the best price for a home. The seller, who is acting on their own, may be overpricing their home causing it to stay on the market longer.
A for sale by owner is typically wanting to save the commission by choosing not to be represented. They are often overpriced and inexperienced. Having a buyer’s agent will confirm the property value and assist the buyer in negotiating the best price in this situation
#4 You May Still Need Expert Help
Buyers may also want to hire a licensed agent who can help negotiate the best price and assist in other areas such as, interpreting inspection results, and finding contractors.
In some cases, the seller can be asked to pay for the buyer’s agent. If they refuse, the buyer should agree to pay a real estate agent to represent them in the transaction. Some transactions may be clean cut and easy. Others can be very complex, difficult and stressful. Going at it alone is never a wise decision. If your buyer is looking to go at it alone the best advice is to let them know they should seek a real estate attorney’s advice to protect their best interests.
National Association of Realtors in 2017 reported 88 percent of home buyers purchased their home through a real estate agent or broker. As always I recommend sitting down with your selected agent to make a game plan on how to tackle the home buying process. Please reach out to me to help you find your new home at 623-694-0887 or tbenner@mitchellgroupaz.com
