Should You Hire A Real Estate Agent?
If you’re a first-time buyer, you’ve likely already accessed the wealth of information about home buying that can be found online. With so many resources and articles at your fingertips, you can consume endless content about how to reach your real estate goals. And in the age of online listings, why hire a realtor or real estate agent at all? Wouldn’t it be cheaper and easier to navigate your real estate transaction yourself?
The truth is, while hiring a real estate agent isn’t legally required, they have valuable expertise that can make your home-buying process far easier and less stressful. According to the National Association of Realtors, 89% of buyers in the last year used a real estate agent or broker. Real estate agents are extremely popular, so let’s look at reasons why you as a buyer should hire one to help with all your real estate transactions.
Why Hire a Real Estate Agent?
A real estate agent is a real estate professional with expertise in helping buyers find their dream homes, making them qualified to handle almost every aspect of your home-buying experience. Real estate agents work on your behalf, handling tasks like finding hidden gem properties, pointing out red flags in others, and giving you access to a variety of networking opportunities. Let’s dive into some of the benefits of hiring a real estate agent.
Extensive Knowledge of the Local Real Estate Market
A professional real estate agent undergoes a dedicated training process to learn the housing market inside out, and some specialize even further in different areas of real estate. They also have daily experience going in and out of houses, evaluating trends, comparing prices, and making offers for clients. It’s helpful as a buyer to search real estate websites for price ranges in neighborhoods or common amenities to create a general view of your area’s market, but real estate agents have a direct, deep understanding of the current housing market that will give you an edge against self-represented buyers.
Access to More Listings
One of the most difficult parts of searching for a new home for potential buyers is finding listings that meet your criteria. You may find listings that match your price range but lack a non-negotiable amenity, or others that have every amenity under the sun but are thousands of dollars outside of your budget. Finding the right listings for you can be tedious, but real estate agents have internal access to more listings, both from the Multiple Listing Service (MLS) and through off-market listings. This gives real estate agents more options when searching for properties for you, allowing them to move faster.
Faster and Competitive
Speaking of faster, real estate agents are typically able to move quicker and be more competitive when finding a home that meets your needs. Rather than scrolling through listings on a real estate website or driving through neighborhoods searching front yards for a “for sale” sign, a real estate agent has more resources readily available through networking to find houses just hitting the market so you can beat the competition before others even get a chance to see the listing. Realtors, for example, have access to a program called Realtors Property Resource with exclusive property data.
Real estate agents also tend to have tricks up their sleeve to give you an edge when placing an offer on a home, from placing competitively high cash offers to sending handwritten letters to the seller. Putting your trust in your real estate agent can help you skate right past the competition and into a home purchase.
Ability to Spot Red Flags in Properties
When walking through a listing, it’s easy to overlook potential problems and focus on the beautiful countertops or new appliances. Even if you do notice issues with the property, they may not be as in-depth as what a real estate agent would find. Since real estate agents look at so many properties daily, they’re well-trained to notice issues such as mold, leaks, insects, and roof damage.
Your real estate agent’s eye for red flags in properties can help you to either negotiate a better deal with the seller on the home or run in the other direction entirely.
Negotiating Skills
A good real estate agent will be right by your side in negotiations with a seller. Negotiations are common and often include debates on pricing, repair costs, or closing costs and terms. Real estate agents are skilled in negotiations and can bargain with the seller to get you the best deal possible. If there are repairs you want to be done, closing costs you want to be covered, or a lower price than listed, your agent can help you.
Background in Writing Contracts
If you’re not a lawyer, the responsibility for contracts for your new home may make you feel like you’re in over your head. Don’t worry, though — a real estate agent will have a background in drawing up legally binding contracts that follow state and local laws for the sale of a property. They can also explain the different paperwork you’ll be signing throughout the home-buying process so you’re caught up at every step.
You’ll obviously want to avoid legal issues when wading through paperwork and contracts, and some real estate agents will have a more extensive background in writing contracts than others, so take the time to choose an experienced agent you trust with that responsibility.
Networking
The relationship you build with your real estate agent won’t just be getting you to a closing. Real estate agents are part of a large network of real estate professionals who can help you take your new property from house to home. If you need a mover, interior designer, appraiser, or closing attorney, your real estate agent probably has someone in mind to refer you to. With a list of real estate industry professionals at your fingertips, you’ll be able to mitigate some of the stress that comes with becoming a new homeowner.
How To Hire a Real Estate Agent
So, you’ve decided to use a buyer’s agent to help you find the home of your dreams, but you might still have questions. How do you hire a real estate agent in the first place?
To hire a real estate agent, you first need to find one. You can search for referrals to real estate agents in your area from friends, family, colleagues, or social media. Once you find one, reach out to talk more about what you’re looking for to make sure you and the real estate agent are a good fit. Afterward, you’ll sign a buyer agreement that outlines what services you expect during the buying/selling process and how much the real estate agent will be paid in commission (typically 3% of the house’s price, but the seller usually covers this).
What Sets Realtors Apart?
Though the two terms are sometimes used interchangeably, real estate agents and Realtors have slight differences that set them apart. While both have real estate licenses to help buyers and sellers with home purchases, Realtors are members of the National Association of Realtors, an organization of over 1.5 million real estate agents. These Realtors are required to follow NAR’s Code of Ethics to ensure that they act in their clients’ best interests. Both are good options when looking to buy or sell a home, but a Realtor’s status can set them apart when helping you through the home-buying process.
If you’re wondering how to hire a Realtor, it’s the same process that you would follow to find any other real estate agent: find one through NAR’s directory, talk with them about your expectations to make sure you’re a good fit, then sign a buyer agreement outlining the services and commission.
And how much does a Realtor cost for a buyer? Realtors are often paid the same 3% as a real estate agent, but again, the seller often covers this. It’s still smart to be prepared to pay the Realtor’s commission when looking to hire one, just in case.
Conclusion
With this new knowledge, you’re more prepared than ever to hire a great real estate agent and begin searching for your new home. Buying your first property is a huge, exciting milestone, so find someone you can trust to take charge of the process, allowing everything to move smoothly and quickly.
