Everyone who sells or buys property always thinks about a necessity of hiring a real estate agent. Portrayed in many films negatively they seem to do nothing and get huge money for that. However, people who have experience of either buying or selling a home would more likely agree that a realtor has played an important role in that experience. So, if you are not ready to pay a sizable commission from your pocket or wish to try your own hand in real estate business, evaluate the benefits and drawbacks of buying a house without a realtor and only then make your final choice.
Benefits of buying property on your own
From 10 to 15 percent of buyers avoid realtor assistance in buying a house. When you hire a realtor you should not only pay money but also deal with a human factor as all people are different. That is why most of the benefits connected with working on your own are mainly connected with these issues. Here are some of them:
1. Saving money
The greatest benefit of buying a home without realtor help is the absence of the commission. It may seem greed to someone, but are you ready to give away your toughly earned money? Undoubtedly, there is always anything more important to spend them on.
The sums of money vary greatly as usually, realtors take some percentage of the total cost of the property. Consequently, the more pricey home you buy, the more you will give to a realtor. Wouldn’t it be more reasonable to stage your newly bought house or celebrate a purchase with a housewarming party?
2. No middle man between a buyer and seller
There is always a misconception that realtors can cheat you to sell a property faster and for bigger money. However, this thought deserves to exist as people tend to present anything they wish to sell better than it really is. Realtors are experienced liers and psychologists so it is not difficult for them to persuade a non-confident person. Moreover, inability to communicate with the seller may provoke some realtors to increase the property price for getting higher profits.
If you speak with a seller directly, you get a number of benefits. You can not only learn a real cost of the house but also negotiate it. By doing so, you will both save on realtor services and the cost of the house. In addition, you can ask a seller any questions you wish and even without any professional knowledge spot if there is anything he wishes to avoid saying or showing.
3. More time and a bigger number of listings available
If you hire a realtor, that means that you need to find a home faster. Realtors do not like to stretch this process for months so they start offering everything they have on a list to make a deal faster. However, it reduces the chances of a buyer to find a house of his dream. First of all, most of the realtors wish to sell property they were hired for, so they will suggest these homes from the very beginning and rather persistently.
At the same time, buyers can look through hundreds of listings on their own and choose those homes that meet their preferences. They can do that for months and years and nobody will hurry them to sign a deal.
Drawbacks of avoiding realtor help
Though somebody does not admit hiring realtors, in reality, their assistance can very very useful under some circumstances. As a result, a person experiences a number of challenges and has to cope with them alone. These are some of them:
1. A necessity to find answers to many questions and complete much paperwork
When you just start looking for a new house, you think only about its look, condition, and price. But when it comes to making a purchase, a variety of questions appear and not always you can find answers to them on the Web. First of all, these are papers connected with home owning and processing payment. It is not safe to carry huge sums of money in the pocket.
A professional realtor can advise you how to secure financing and will provide answers to all questions connected with buying property.
2. You lose some great advantages
A realtor can be a good assistant in many situations. You can rely on his professionalism in the following cases:
- Choice of property;
- Negotiating the price;
- Order a home inspection;
- Research the cost of utilities;
- Organising showings;
- Learn about neighborhood;
- Finding the history of this property;
- Looking at property without visiting it (virtual tours);
- Preparing documents for a purchase etc.
All these challenges require time and effort but a realtor can do everything for you.
3. A realtor can represent your interest if you buy property in another city or country
If you look for property abroad or in the other city, you will need a person who can learn all the details about the property and prepare everything. Not all people have time and extra money to live somewhere for a long period of time as only property preparation for sale takes several days, let alone many other issues. A realtor can complete everything for you.
Moreover, sometimes information mentioned in the listings has nothing common with a real house, so a realtor will spot that thanks to his professionalism.
Buying a home from the owner is not always cheaper. Everybody wishes to get the most of the property they own and prices can be exaggerated. Being not aware of the actual home value and average prices for similar properties you will give more than you could.
In addition, overpaying can result in appraisal problems and legal mistakes as well.
It goes without saying that nobody wishes to pay extra money for realtor services, but it is the same as to hire a lawyer to represent you in the court or pay for a visit to a doctor. You can do that yourself thanks to the abundance of the information on the web, but are you sure to get the results you hope for? Professional assistance is a great benefit in any situation and buying property is not an exception. It is better to give 5% of the property cost to a realtor than be cheated and lose the whole sum of money. However, everybody makes his choice himself.