Selling a home privately and buying a home without a REALTOR® can be a more challenging task than most people are aware of. If you’re in the market to buy or sell a home, and doing all the legwork yourself, here are some factors to think about.
USING A REALTOR® WHEN BUYING A HOME
There are a lot of misconceptions people have about using a REALTOR® if they’re buying a home. A lot of people think they will save money if they buy it themselves. The truth is, there are many amazing benefits with using real estate agent. The following paragraphs perfectly explain them.
The best part about using a REALTOR®, is that it’s completely free to home-buyers. You don’t pay anything. With all the experience and expertise a real estate agent brings to the table, why not use one?
Six reasons to work with a REALTOR® when buying a house
- They are specialists. Real estate agents are pros when it comes to searching for an ideal home because they can find listings that you might not have stumbled across in your search. In fact, they will even set you up in their system which emails you every time a house that meets your criteria comes up for sale. You’ll be the first to hear about it usually before the general public does.
- They know the market. They can tell you if the asking price is unreasonable or not for that neighbourhood. A real estate agent can tell you if the price of the home is comparable to homes that were recently sold. This means they can strengthen your purchase-offer and increase your chances of winning a bidding war.
- They have a great sphere of influence. Real estate agents can answer all your questions. If they can’t answer a particular question, they probably know someone who can.
- They do the paperwork. Buying a home means there is going to be a lot of paperwork and legal documents to write up and sign. Any reasonable person would want to use someone that completely understands the paperwork they’re signing. REALTORS® handle all the paperwork for you ensuring every “i” is dotted and every “t” is crossed. With a purchase this big, you definitely want someone that will perform due diligence and make sure you’re completely covered.
- They’re there for you when you need them. Buying a home can come with a wide array of emotions. From excitement to frustration, we’ve seen it all and can help you navigate the landscape. An agent’s job is to make the entire experience as stress-free as possible. Experienced agents have plenty of tips and tricks that make the buying process as smooth as possible.
- There’s no cost to you. As I mentioned, an agent’s commissions are paid by the seller 99% of the time. There really is no reason not to use a REALTOR® unless you have a lot of time on your hands.
If you’re lucky enough to find a top REALTOR®, you’ll get to sit back while home listings come in, and all the important work is done for you. It doesn’t get any better than that.
USING A REALTOR® WHEN SELLING YOUR HOME
When it’s time to sell your home you want to get the most money you can for it and a lot of sellers think they will if they sell their home privately. Consider the following 5 cons to selling a home privately.
Five cons to selling a home privately
- Real estate agents take care of it all. You might be a great negotiator and willing show your home when it’s convenient to buyers, but it’s much more than that. There’s so much paperwork and legal documents to sign that most people selling their home privately tend to become overwhelmed once the process gets started.
- Agents have experience and know-how. Private home sellers don’t necessarily have the expertise and experienced that a REALTOR® does. If you mess it up, it can end up costing you more than an agent would have cost. When you receive an offer from a buyer, there are schedules, fulfillments and amendments that have to be filled out and signed on time. For example, if a clause isn’t written into the contract, you’re setting yourself up for costly headaches later on. With this much money on the line, do you really want to risk not legally covering yourself in a buyer’s contract?
- They have the know-how. Real estate agents know how to accurately evaluate the worth of your home. Anyone can find the asking prices of comparable homes in their neighbourhood online. But only REALTORS® can see what those homes actually end up selling for. Private sellers are sometimes tempted to overprice their home because its sentimental value. At other times they price it too low because they’re not aware of the actual value of the home. A good REALTOR® will be able to anticipate market changes throughout the year, and help you price your home a way that will attract buyers while still getting you top dollar.
- You’ll get a second opinion on your property. Everyone needs a second opinion. Ask yourself, do you have an accurate perception of how buyers will see your home. Are you really up to date on what buyers are looking for in houses these days? Your REALTOR® does. They’ll view your property as a product for sale and can provide valuable advice on how to stage it so buyers are impressed as soon as they come in the front door.
- Your agent will promote your listing. If you use an agent, your home will be professionally promoted through various channels including print, on social media, on their website, and other promotional material. Gone are the days of placing a real estate listing in the newspaper and waiting for buyers to call. These days, REALTOR® showcase client listings with professionally edited photos, video tours, and printed marketing materials. They splash your listing across multiple online platforms where buyers will definitely see it. Their goal and aim is to find you a buyer quickly and for the best price.
PITFALLS OF PRIVATE SELLING
If you’re still not sure whether hiring a REALTOR® is right for you, consider the practicality of showing your home to multiple potential buyers on any given day:
- People find it awkward when the person who is selling the home is following them through every room.
- It is difficult to be there for every showing or open-house with a busy schedule.
- If something goes missing from your home you have no recourse, and you probably won’t get your property back.
- You’re letting complete strangers into your home and have no idea who they are.
- You lack the knowledge of the process, law or etiquette of the interaction.
Real estate agents assume complete responsibility over your house during open houses and private viewings. They know their clients because they identify them through reporting forms and other legal buyer agreements.
An agent will stay with the buyer as they walk through your home, which protects them, and protects you too. This is something you really need to think about.
The bottom line is that when it comes to buying or selling your home, a real estate agent will do everything that needs to be done to ensure the sale goes smoothy, legally, and 100% in your best interests.