Buying a house is easier today, in many more ways than ever before. There are online tools that allow you to look at many different real estate listings without leaving your home. You can learn the history of a house and its neighborhood before deciding which ones to visit. You may even have wondered whether or not you need a real estate agent to buy a house.
With so much information at their fingertips, many consumers choose to buy a house without hiring a real estate agent and dealing with the search and preparation of documents themselves. Although this option allows you to save money, is it the best for you? The following are some things to consider regarding the pros and cons of buying a house without using an agent.
The advantages of buying a house without going to a real estate agent
Buying a house without a real estate agent has certain advantages. The following are some of them:
You save on commissions: According to a renowned property management Marlborough Ma company, about 10% to 15% of homebuyers choose to go through the process without an agent. This gives the seller more room to negotiate the final price, because you won’t have to pay the agent’s standard commission.
You have direct bargaining power: If you coordinate directly with the seller, communication may be more open because you don’t have to wait for the agent to relay information to you. This can be to your advantage, particularly in times when markets are growing and agents may not respond as quickly as you need.
It’s useful if you don’t need so much guidance: If you’re buying a property, you already know about, such as a neighbor’s house or a property that has been owned by your friends or family for many years, you may already know more about the property than you think. Involving a real estate agent may seem unnecessary if both parties have all the relevant information and want to close a deal.
The disadvantages of buying a house without using a real estate agent
However, it’s also important to keep in mind that real estate agents are licensed and have special knowledge of what it takes to close a real estate transaction: it’s a complex purchase and it’s not the same as buying a car. Knowing how to buy a home without an agent can be difficult, so be sure to consider all the work involved before you begin:
You must know the documentation that must be presented: as anyone who has bought or sold a property knows, the process involves a lot of paperwork. If you’re going without a real estate agent, you’ll need to hire a real estate attorney who can draft the legal documents you need.
It means that you will have to move more: real estate agents can offer you information such as comparative market analysis and help you navigate the process in all its stages, including an appraisal and asking the seller to make certain repairs. This will be your responsibility if you don’t use an agent, so find out what you need to do quickly.
You could miss out on some information: This is especially true if you move to another city or state and don’t know their histories or the specifics of the area. Agents have this advantage and can help you save time on your search.