If you are wondering if you have to have a realtor to buy a home, the short answer is no. But the better question is should you? Let’s discuss it!
Most buyers want to avoid a real estate professional because they think they will save money. However, this is not likely true for more than one reason.
- Realtors have extensive training and experience in negotiating for their client. Having an agent working for you that knows market conditions, common pitfalls and details of the market can be invaluable. If you go it alone, you may give up things that a good agent could get paid for you, like a warranty or a termite bond.
- If the home is listed with a realtor, the seller has already signed a contract to pay a set commission to that brokerage. The listing agent offers compensation to an agent who represents a buyer. Most likely, you will not save that money if you forego an agent, as this was a predetermined amount and contractual agreement prior to the home going on the market.
- Realtors have in depth knowledge of market value and market conditions. By representing yourself in a home purchase, you miss out on all of that knowledge. While it is true that there are value estimates on many websites, all of those estimates are generated automatically and do not take factors into account like conditions of homes, type of construction, age, etc. These are all vitally important in determining a value.
- Realtors are licensed professionals and many belong to professional organizations and continue to educate themselves well after licensing. Realtors assist with things like finding suitable properties, arranging showings, contract writing, offer negotiations, home inspection guidance, appraisal help, working with lenders and attorneys to make sure that closing is facilitated and on track, etc. Also, good realtors work long after the transaction closes, answering questions and assisting with new situations that arise due to home ownership.
The question of whether you should have a realtor is really quite simple…yes! In addition to what we discussed above, realtors have access to more information than most of the general public when it comes to properties. Having a realtor working for you means that you gain access to that information, and having access to that information increases your chances of buying or selling by 82%. Sounds pretty good right? If you think that’s good, here’s some more statistics for you:
36% of sellers attempt to sell their homes themselves, but challenges along the way lead many of them to eventually hire an agent. In the end, only 11% of sellers end up selling their home without a real estate agent.
On average, homes listed by an agent sell for 26% more than they would if they were FSBO.
For homes recently sold with agents, the final sales price was a median of 100% of the final listing price, the highest recorded since 2002.
85% of sellers said that they would recommend or use their agent for future services.
89% of buyers would use their agent again or recommend their agent to others.
To sum things up, do you have to use an agent? No. But, is using an agent going to put you in the best possible position to sell or buy your dream? Absolutely!
If you would like to know more information about what we can do for you, don’t hesitate to reach out to us!
