Should you buy a house with the help of a real estate agent or is this something you want to do by yourself? This is a decision you have to make before you delve into the process of hunting for a house to buy.
Working with a real estate agent comes with the benefit of having a professional who ensures your interest stays protected all through the process of buying the house. However, we have had people who bought their houses without engaging the services of a property expert.
Is there really any difference between buying a house by yourself and using a real estate agent? Let’s start by finding out who real estate agents are and what they do.
Who is a Real Estate Agent
A real estate agent, also known as a realtor, are licensed professionals who represent buyers and sellers in real estate transactions. Agents are known to work purely on commission. This explains why their income depends largely on their ability to assist clients and close transactions.
What Else Do Real Estate Agents Do?
In addition to representing your interests in the process of buying a house, some other things that a realtor does include:
- They help you deal with the paperwork involved in buying your house
- They help you liaise with the seller
- They help you negotiate for the best deal
Reasons to Consider Buying a House Without a Real Estate Agent
You are not any compulsion to use a real estate expert when you want to buy your house and here are some reasons why you might consider excluding a realtor from your plans.
1. Does Not Guarantee Saving Money
The fact that you are working with a real estate agent to buy your house does not mean that you will spend less on the property. There have been situations where you even find yourself paying more.
2. Saving Extra Money
One of the factors that drive you to go house hunting without a real estate agent is to save as much money as you can.
3. Flexibility in Pricing
Without a realtor, the seller of the property does not need to pay any commission to the realtor, which means he/she can be a little more flexible about the pricing of the house. The seller can only cut out this commission if you are not working with a realtor.
4. You Can Actually Pull It Off
With the penetration of the internet and online marketing in the real estate space, you might find yourself not using a real estate agent. You can actually search online, contact the seller, inspect the property and pay for it.
How to Buy a House Without a Real Estate Agent
If you are confident and comfortable enough to engage a property seller over the potential sale of his/her house, then you should be able to pull this off. If you intend to go this route, here’s what you should do.
1. Check Out Listings
Go through a trusted real estate website to see a list of properties that are available for sale.
2. Contact The Seller
When a find a property that meets your needs and preferences, proceed to contact the seller via an email and a phone call.
3. Schedule an Inspection
Images and videos of a house listed for sale are good but that’s not enough to prompt you into making payment. You still need to carry out a thorough inspection of the property to confirm that all features in the listed property check out.
4. Negotiation
When you are satisfied with the property, you can proceed to negotiate with the seller for a price that is mutually agreed upon.
Reasons to Consider Buying a House With a Real Estate Agent
The fact that you can buy a house without a real estate agent does not mean that it is a smart thing to do. Below are some reasons you might want to get a realtor involved in your home-buying process.
1. Saves You Time
The fact that you are working with a professional who has done what he/she is about to do for you for over 100 people helps you save time you would have spent trying to figure things out on your own.
2. Access to More Listings
An experienced real estate agent will provide you with far more property listings than you would have had access to if you were searching on your own. You get a richer offering of properties listed for sale.
3. Reduce the Risk of Paying Too much
Without a real estate agent, you could find yourself at the mercy of a seller who is eager to exploit your desperation to buy his/her property. An experienced property agent would see through this sham and ensure that you’re not paying too much for the property involved.
4. Negotiating Tricky Sale Conditions
You will enjoy the advantage of being bailed out of tricky situations when you work with a realtor when buying your house.
5. Recommending Vital Services
Working with a realtor gives you the luxury of getting connected with home inspectors and other key professionals you would need for documentation and other stages of buying your house.
6. You get Help With Paperwork
Do you enjoy the kind of paperwork that goes into buying a home? Except you’re a lawyer, you might find this stage of your home-buying experience boring and frustrating. You need not worry about this when you’re house hunting with a real estate agent.
Real Estate Agent’s Commission
When you work with a real estate agent, he/she gets a commission of 10%, which is also known as agency fees. This percentage is quite negotiable and can drop to as low as 2% in a situation where the transaction involved spans into several billions of naira.
How to Buy a House Using a Real Estate Agent
Before you give a realtor the mandate to help you find a house you intend to buy, it’s important to have a contract that guides your dealings with him/her. This contract should clearly highlight what your expectations are so that they can be professionally managed.
Never rush into appending your signature that you have not devoted sufficient time to reading through. You might not know this but there’s always room to negotiate.
Don’t hesitate to ask the realtor follow-up questions. The essence of this is to give you a better grasp of what to expect from your dealings.
At this point, please bear in mind that the contract should have an allowance for a trial period in order to finally make up your mind on proceeding with the realtor or finding another real estate agent.
How long Does it Take to Buy a House?
There is no rigid timeframe for the realtor to help you finalise the process of buying your house. You should remember that your needs are quite different from the needs of the seller. You also have some unforeseen circumstances popping up.
Ask Questions Before You Buy a House
The last thing you want to do when buying a house is to be so shy that you refrain from asking questions. Don’t do this else it would amount to shooting yourself in the foot.
The more a property appeals to you, the more questions you should ask. Some of the questions you want to ask the real estate agent are:
- How long has the house been put up for sale?
- Why is the owner of the house selling?
- Is the house jointly owned or does it belong to a single individual?
- Are there works expected in the house?
- What else will be included in the sale of the house? Will there be any furniture
Final Thoughts
Industry experts are of the opinion that it is better to engage the service of industry professionals especially real estate agents before you buy a house.
In addition to making the process easier and faster, they also have a solid knowledge of property pricing and will help you make decisions that help you avoid unnecessary headaches in the future.
