Why You Need A Real Estate Agent: The Six Steps To Buying A Home.

Now that the housing market is on the rebound from the financial crisis of 2008 more people are looking to buy a home to take advantage of low interest rates. Buying a home is still part of the American Dream for many people, so the question is: Do you need to hire a real estate agent?

 1. Deciding To Buy A House

With an Agent: The housing market post-crash is a tricky one. Real estate agents can help you navigate foreclosures, short sales,tighter lending standards and a whole host of other issues.

Without an Agent: It’s all on you to figure out the different parts of buying a home. It can be done, thanks to the Internet. but be prepared to dedicate dozens of hours a week to your home buying process.

 2. Financing Your New Home

With an Agent: A good real estate agent will already have a contract with local lenders. They can help you find a reputable local lender who will provide good service and act in your best interest.

Without an Agent: It’s you against the financial world as you sift through different lenders looking for the best deal.

 3. Finding Your New Home

With an Agent: It is a real estate agents roll in life to find your dream home. They have the contacts, the databases of homes and they know how to get things done. An experienced real estate agent will have up-to date info on what is happening in the marketplace including pricing, financial terms and trends in the market.

Without and Agent: You will need to create a system to organize your home search. This will include spreadsheets with columns full of locations, prices, number of bedrooms and baths, visit dates, etc…Not to mention you have to keep this file handy as you go and look for homes.

 4. Making An Offer

With an Agent: Good real estate agents are experienced negotiators and should have a mastery of details: helping you complete a real estate transaction that encompasses a win-win price, transaction details like preferred time lines, financing details and other important info that fit your needs.

Without an Agent: You better be able to roll with the punches because if you get in a bidding war with another buyer things could get messy, fast!

 5. Due Diligence & Inspections

With an Agent: The initial agreement is only the beginning of the process. Appraisal, inspection and financing all pose as possible pitfalls in a Real Estate transaction. A real estate agent can give objective professional advice to resolve issues and move a transaction to closing.

Without an Agent: The required paperwork alone can be overwhelming! Not to mention everything else you have to know how to do.

6. Closing

With an Agent: An experienced agent will understand the closing paperwork and knows what to look for regarding closing costs, title insurance, pro-rations and other fees that come up at closing.

Without and Agent: Do you know anything about title insurance, what fees to expect or the paperwork that goes along with it?

 

BONUS:

With Real Estate Purchases being one of the biggest financial transactions most people will experience in their lifetime, why not let a professional that has years of experience and knowledge help you!

After all in the majority of cases your real estate agent will be paid by the seller, usually 3% of the price of the home!

 

 

Source: Jensen and Company.

 

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