Can you buy a home without the help of a real estate agent? The answer is yes, but doing so comes with potential risks. If you are about to tour houses to buy a property, you are probably weighing the advantages of working with an agent. An agent is beneficial in most cases, but there are cases in which doing things alone would be better. It can save you money, time, and hassle. That said, what should you do?
Here’s what you need to do first: Study the decision deeper and understand the pros and cons of buying a home without an agent.
Advantages of Working with a Real Estate Agent
Potential to Save Money
Saving money is the biggest reason buyers prefer to buy properties on their own. Real estate agents typically cost around 5 to 6 percent of the property’s total price, which is either paid by the buyer, the seller, or both. Without a real estate agent, you may be able to convince the seller to lower the price. However, this would only work if you have negotiation skills.
Direct Connection with the Buyer
Having a direct connection with the seller is crucial in the buying process. For instance, if you are looking for a new home for your family and your neighbor or old friend is selling their property, that is an excellent way to connect directly. In such cases, you don’t necessarily need a real estate agent as you already have a relationship with the house seller.
Not working with a real estate agent can make the home buying process appealing, especially if you prefer to deal with the seller on your own. You no longer need to relay messages and wait for callbacks because you are basically working as the agent. In other terms, you have complete control of how you communicate with the seller, ensuring that your concerns and needs and met.
Disadvantages of Not Working With an Agent
Less Access to Critical Information
If you do not have adequate experience in buying a property, you will most like not to know about the whole buying process. While real estate sites and mobile apps make the process more accessible than ever, there are a few details that require the expertise of a real estate agent.
For instance, a real estate agent can help you understand how mortgages work. They can also find hidden properties that will always be worth the money. In addition, they can be pretty helpful if you intend to buy a property from an unfamiliar location.
As mentioned, there is some information that only a real estate agent may know. As professionals in the field, they have already accumulated knowledge to help buyers buy a home that meets their preferences and needs.
Indeed, you can learn about the home buying process through the internet, but only a professional real estate agent can help you understand these things appropriately. They can educate you along the way. You can turn to your real estate agent if you’re in a situation you don’t even understand. Moreover, buying a house requires a lot of reports, documentation, and forms, and only an agent can help you with paperwork without causing any delays and expensive missteps.
Less Home Knowledge
A house may seem appealing to you, but a real estate agent can help you determine if it has physical damages. As a buyer, you want to ensure that the home you want to buy is in its best condition, but if you don’t work with an agent, you might miss important parts of the house that probably needs fixing. A real estate agent knows which parts of the house need a thorough inspection. If you are uncertain about your skills in assessing a property, an agent is necessary.
Lack of Negotiation Skills
Let’s say that you were able to inspect the house adequately, and you have noticed that it needs major fixing. Will you be able to negotiate? Negotiation skills are another vital factor in ensuring that you get your money’s worth. If you really want to buy a specific house whose price is way above its actual condition, a real estate agent can help you negotiate. They will try to negotiate in your favor, but of course, they will ensure that the seller is happy with the agreed price as well.
These are the pros and cons of buying a home without a real estate agent. As you can see, while there are several advantages, there are significant risks too. It’s a case-to-case basis that requires proper planning, knowledge, and risky decisions. Overall, if you lack the skill to buy a home, it would be wiser to work with an agent.