Some people choose to use a real estate agent and some people choose to buy their house on their own. Why do some seasoned investors choose to work with an agent? Below is a list of 7 benefits of using an agent.
- Understand potential restrictions of the property. This will save you from mistakes such as buying a retirement property, then finding out it is located on a floodplain and is essentially worthless.
- Know about new developments that might affect a properties value. A good real estate agent will know of proposed new developments that might affect different properties in which a buyer is interested. Whether these developments are positive or negative can be valuable information when weighing different housing options.
- Find potential problems with a property. It is always a good idea to have a home inspector look at a potential house. A Realtor may however, be a better source of information about common problems, such as foundation or electrical, that affect a particular neighborhood.
- Understand contracts specifics. Whenever you buy or sell a house you are entering into a large personal transaction. It helps to have someone on your side that deals with these types of transactions on a daily basis. A Realtor can help you understand contracts and can explain what is typical for your area.
- Misperception of the advantages of doing it on your own. Buyers frequently think that by not using a buyers agent they will get a better deal from the seller. Nationally, homes without an agent, sell for 14 percent less than agent listed homes in the same neighborhoods. In addition a lot of these homes still end up having a buyers agents involved. Besides, since an agent has experience marketing homes the agent often can spend money more effectively on advertising. Agents often know which advertising sources produce the most potential buyers.
- Saves time. Looking for listings without an agent can take up large chunks of time. When looking with an agent you can see several homes in a few hours. When doing it alone, you have to call the listing agent for each house and wait at the house for the agent to arrive and open up the house. In addition agents, often know houses which are not listed or have been identified to have potential problems.
- Insure Security. When a home is listed with a broker, agents coming to the house have to usually log in. This allows the listing agent to keep a record of every party coming into the house. Since their business is on the line, agents are more likely to protect the house from damage or theft. For a variety of reasons, it is generally not a good idea to have random people you do not know come into your house.
Whether you choose to look for a home on your own or with a realtor its a good idea to be a extremely careful when you seek out your dream home.