Congratulations! You’ve decided you’re ready to purchase a home. Now it’s time to decide — should you use a real estate agent or not?
Benefits of hiring a real estate agent
The expertise of a real estate agent can come in handy, especially if you’re a home buying novice. This person sets up home viewings for you, helps negotiate the best deal on the home you want to buy and offers invaluable recommendations on reputable inspectors and other service providers you’ll need as you near the finish line in your home buying process. Even if you plan to do some of the legwork yourself in terms of searching online for listings, you may still want to consider working with a real estate agent if:
- You’re strapped for time — for example, you’re relocating and need a house ASAP
- This is your first time buying a home
- You don’t know what red flags to look for when searching for your dream home
- You don’t understand real estate contracts, legalese or are uncomfortable negotiating
Buying a house without an agent
Taking on the housing market solo is a bold move that could help you save money — but it’s not guaranteed. Buying a home will likely be one of the biggest financial transactions you’ll make.
If you choose to navigate the process without an agent by your side, you’ll need to be prepared for everything that comes along with it, including:
- Paperwork, paperwork, paperwork — including inspection reports and real estate contracts
- Researching properties and looking at comparable sales to make sure your bid is competitive
- Brushing up on your negotiating skills
PRO TIP: With the possible exception of a For Sale By Owner (FSBO) property, the seller is responsible for paying the buyer’s real estate agent. This means that forgoing an agent may not save you any money but will typically save the seller a percentage of the purchase price. If working with an agent isn’t for you, be sure to tell the seller in your offer that you’re offering a lower price because they don’t have to pay for your real estate agent’s commission.
Make finding the right real estate agent easier
- Talk to your lender first to get prequalified/preapproved so your agent knows what price range you can afford.
- Get referrals from friends and family.
- Research potential agents. This includes checking out their website and social media accounts to see how they present themselves. You may even want to reach out to the Better Business Bureau to make sure they don’t have complaints against them.
- Interview potential agents. They might look great on paper, but this is someone you have to feel comfortable with in finding your dream home at a price you can afford.
- Review your contract carefully before signing. Ask for a 30-day initial agreement. You don’t want to get stuck with an agent who isn’t finding you good leads on a home.