Guest article provided by: loancompass.com
From the first meeting to the final signing on the dotted line, a real estate agent plays a lot of important roles in all transactions.
But do you really need a real estate agent to buy a home?
Before you make a decision, let’s do a deep dive on what real estate agents really do, how they get paid, and what to look for in a real estate agent.
What Does a Real Estate Agent do?
Both a listing agent and buyer’s agent help guide their clients through the real estate process. They assist with all important and necessary paperwork, effectively communicate with all parties involved in the transaction, provide inside information on the home and area, and help with the closing process.
Each agent also plays specific roles and provides tailored services to their client. For instance, listing agents (agents that help sellers), help clients ask for a fair price based on current market conditions and local area. These agents can also suggest home updates, handle marketing materials, and connect with buyer’s agents. Listing agents also prepare, submit, and file vital contracts and agreements.
Buyer’s agents work with the homebuyer to find properties that fit their client’s budget and requirements. In addition to ensuring clients are preapproved for a mortgage, these agents also help with showings, bids, and negotiations. They’re also the ones who submit important paperwork such as contracts and agreements on your behalf.
Reasons to Hire a Real Estate Agent
Tedious, long, and frustrating – those are just a few words that people use to describe both buying and selling a home.
But it doesn’t have to feel that way! When you hire a real estate agent to help you through the process, you quickly realize that many burdens are lifted. For example:
Depending on the state, some buyers can sign up to 180 sheets of paperwork just to close on a home! From the original sales contract to closing documents, sellers also have a mountain of paperwork to filter through.
Agents know what to look for
From market conditions to home inspections, there are a lot of tedious details that agents are trained to look at.
Agents with strong negotiating skills can not only communicate with all parties, but they can maximize the value of the deal.
Make more money
Working with an agent gets you more money when selling a home. According to the National Association of Realtors’ (NAR), seller’s who list their own homes typically receive less than the selling price of other homes in the area.
Why Some Buyers Don’t Work with a Real Estate Agent
Real estate agents aren’t for everyone, everyone has their own preferences. Here are a few of the most common reasons buyers choose not to work with a real estate agent.
1.Real estate agent commission.
This is the main reason why buyers choose not to hire a real estate agent. Real estate agents usually get 5% to 6% of the sales price. However, it is very rare for a buyer real estate agent to actually collect a commission from you as the industry norm is that the seller’s agent pays both their agent and the buyer’s agent as well!
2.They know the seller and don’t need an agent.
If you already have a strong relationship with the seller, you may not need an agent to help with negotiations.
Without an agent, the buyer has direct communication with the seller and their agent, removing the middleman from the process.
How Much Does it Cost to hire a Real Estate Agent
Out of pocket charges to hire a real estate agent are typically free. The agent gets paid when you buy or sell a home. And that money comes from the transaction itself.
The average commission for real estate agents is 5% to 6% of the home’s sale price. That amount is generally split between the seller and the buyer. Which means if you buy a home for $250,000, the agents will receive $7,500 each – totaling $15,000.
How to Choose a Real Estate Agent
Should you hire a real estate agent?
If you want to avoid costly mistakes and find the best possible deal for you, then yes.
To find the right agent for you, get referrals, do your research, interview multiple agents, and always trust your instincts. In the competitive market, finding the right real estate agent can be the difference you need!
Start your free search today by filling out this form.