Buying a home isn’t like buying a car. Yes, you have to find one that suits your tastes, needs, preferences and both require a good sum of money to purchase. But while both are assets that are subject to wear and tear over time, a house appreciates and a car depreciates. Yet you probably took your time doing research before buying your first car. You may even have consulted with a friend or a mechanic before making that decision. With a house, you should hire a Buyer’s Agent.
When is it time to hire a Buyer’s Agent? How about at the exact moment you decided and committed to the decision to buy a house?
Chances are, buying a home will be the biggest purchase you will ever make in your life. It will definitely be more expensive than a car. Because property appreciates over time, unlike a car, your purchase for a home is an investment not an expense.
Thus the decision to buy a home isn’t just about its features, amenities and neighborhood. You would also have to consider its future payback or potential Return on Investment (ROI).
With such long term implications, you should have a Buyer’s Agent on your side before making the final decision on the home you want to purchase.
Here is a list of reasons why you should hire a Buyer’s Agent:
Buyer’s Agents do not work for free. They are paid a commission for the services they render.
However, the buyer is not accountable for this commission. It is charged to the seller’s side which is borne out of the Listing’s Agent’s commission.
The commission rate paid to real estate agents can range from 2% to 3% depending on the location and level of demand on the property. So you have an idea on how much commission your Buyer’s Agent will receive.
The real estate transaction is not simple. There are contracts to review, city state compliances to fulfill and due diligence to conduct.=
A real estate Buyer’s Agent can get all of these done for you. Once you have identified a property you are interested in, the Buyer’s Agent can get the process moving right away.
He or she will orient you on what you need to do, the documents you have to submit and provide a time line of activities to keep all parties moving in the same direction.
A Buyer’s Agent will schedule all the property visits for you. He or she will act as the liaison to make sure you can meet the Seller and view the property at the most convenient time.
The Buyer’s Agent will also contract the services of an architect, engineer or interior designer to help you evaluate the condition of the home and come up with an estimate on repairs and improvements.
Do you know where to start looking for a house? Online listings are just one avenue but a Buyer’s Agent can open up the possibilities.
The Buyer’s Agent can check his or her listings and see which properties will suit your preferences. He or she can also verify with the existing network. There are property owners who do not publicly offer their homes on the open market. A Buyer’s Agent may be able to convince these sellers to meet with you.
Of course, auctions and open homes are good venues to find quality houses but if you don’t have the experience, it could be intimidating. A Buyer’s Agent can guide you along the process and help you make a bid for the property.
Negotiation may spell the difference between a handshake to seal the deal and a handshake that means, “Good luck on your search.”
Buyer’s Agents are experts in negotiation because they have been listing agents as well. They know how sellers think and approach negotiation. They will be able to navigate the course of the discussions to your favor.
Not only do Buyer’s Agents know the property owners who want a direct, private sale but they also have information on comparables.
Comparables or “comps” are a listing of offer prices in the neighborhood you are interested in. It will give you an idea of how to price an offer that could be appealing to the Seller.
Real estate agents prepare Comparative Market Analysis (CMA) on various neighborhoods. The CMA summarizes data on housing purchases for the last 6 months.
Even for experienced buyers, it is never easy identifying what you truly want in a house.
This is because buying a home can be an emotional moment. Your sense of judgment and rational can be clouded by all of your needs and wants. A Buyer’s Agent can put things into perspective and articulate what you truly need in a home.
Buyers often become emotionally attached to a home that is above budget. A Buyer’s Agent will not discourage you. Instead he or she will move to clear out your biases and make you understand why it may not be to your best interest to buy a home that exceeds what you can afford.
If you are overwhelmed with what you want in a home, let a Buyer’s Agent articulate your needs.
The Buyer’s Agent can advise you on the homes and the areas that could meet your demands without compromising your budget. He or she can render advice on more suitable alternatives that could give you better value for your money.
A Buyer’s Agent can orient you on the latest developments and trends in the market so you will know which areas offer the best investment opportunities.
They are very thorough in the way they present the current state of the real estate market. Of course, you should conduct your own research and validate the references given to you.
But outside the confines of traditional research, Buyer’s Agents have developed a keen intuition on the best areas to invest in.
Overall, hiring a Buyer’s Agent will give you tremendous advantages when buying property. He or she will minimize the risks of making mistakes which can be costly considering the amount of money involved and the potential ROI
As a service that is paid out from the seller’s commission, you have nothing to lose by hiring a Buyer’s Agent. It is a win-win proposition.