Purchasing a Home Through a Realtor Versus a For Sale By Owner
When you decide to buy yourself a home, there is an important question you need to answer right at the very beginning. Should you go about it alone, or hire a real estate agent to help you? There are many different opinions regarding this topic, and I’ve decided to get to the bottom of it and help you make that final decision. And, I’ll have you know - it is a rather important decision. So, don’t rush into things and take your time to do some research. Go here.
First of all, I have to make one thing perfectly clear. You absolutely don’t need a realtor to make that significant purchase. However, since it is so significant, it would be a good idea to consider whether hiring one might actually help you. This depends on your experience, among other things. And, if you are completely inexperienced, but decide to purchase your home on your own, there’s another question that poses itself. At what cost are you doing this?
You need to understand that there are definitely pros and cons for both of these options. In other words, you cannot expect everything to go smoothly and without any setbacks, no matter what you decide to do. However, in order to be able to make this decision in the first place, you need to understand how the whole process works, both when you are working alone and when you have the help of an experienced realtor. Let’s check that out.
Buying Directly From The Owner
When you decide to do this alone, the first thing you need to do is get preapproved. This is your way of figuring out what you can afford, but also of showing the sellers that you are actually serious when making a bid and that your financing won’t fall through all of a sudden. When you apply for a loan, you need to provide the lender with specific information, such as the credit score, debt and insurance, and get an estimate and an offer from them for a specific amount and under specific terms.
Learn more about this process: https://www.nerdwallet.com/blog/mortgages/how-to-get-a-mortgage-preapproval/
After getting that, your job is just beginning. You will have to do a serious amount of research, and then some more. Take the neighbor you are considering and comb it for properties. Check the average prices in the area and make sure to learn about other things that the neighborhood has to offer, such as schools, transportation and other amenities. Once you’ve done that, you haven’t even completed half of the job.
When you have your eyes set on a property, you’ll need to ask for seller disclosures, which is a list of known issues with the house. But, keep in mind that they are only going to tell you about the issues they are familiar with, which might not be everything. Therefore, you’ll need to hire a lawyer and a home inspector.
If you are satisfied with the condition of the house, you can make an offer, and that’s another rather stressful task. Negotiating, asking for repairs, not getting things repaired, or getting them repaired but without a reimbursement, etc. Simply put, you will need to be prepared to do some hard work if you want to buy directly from the owner. All the work that would have been done by a realtor is now on you.
Buying With The Help Of A Realtor
When you hire a realtor, you need to communicate your needs and requirements to that person. If you visit mercerhughesrealestate.com, you will find everything they do afterwards explained in detail. But, let me offer my insight as well and offer some guiding points, so that you know what to expect from these professionals and their services.
Remember the first step in buying a home? I’m talking about getting a loan. This can be a difficult task, and your scarce knowledge can lead you to getting a poor deal. An agent, on the other hand, will be able to offer you useful info about reputable lenders and get you a sweet deal. Furthermore, they can provide reference for home inspectors and all the other service providers you will need.
An experienced agent will have immense neighborhood knowledge, which will allow you to sit back and relax while they comb the market and come to you with information on houses that might pique your interest. They will arrange home viewings on your behalf and help you during the negotiating process. Let’s face it – your negotiating skills cannot be nearly as good as a professional’s.
In addition to all of that, your very own realtor will have a fiduciary duty to you. That means that they have a legal obligation to act in your best interest, as well as protect your information. And even though you are paying them a fee, their experience will allow you to save some money and actually pay less than you would have if you were purchasing directly from the owner.