House hunting is a stressful and complicated process for first-time homebuyers. It requires you to understand the industry jargon and have superior negotiating skills to secure the best deal for yourself. Above all, you need to take care of the mountains of paperwork on your own.
Unless you have extensive experience in real estate investing, it is always a smart idea to hire an agent to help you. Here is why.
1. Realtors Have Superior Negotiating Skills
Know that feeling when you visit an online store and see that there are two items left in the stock? Scarcity marketing triggers buyers’ Fear Of Missing Out (FOMO) and convinces them to purchase faster.
Since purchasing a house is an emotional and stressful event for any homebuyer with little or no experience, it may trigger your FOMO. Once you find your dream house, you may be willing to pay $15,000 more to get it.
That is where an agent steps in. Unlike you, they are not overwhelmed with emotions that can cloud their perception and thinking. Real estate agents have extensive experience in the industry, knowing exactly which negotiating methods resonate with sellers. That way, they ensure you get the best deal on the property you want to purchase.
2. Real Estate Agents Know what to Look For
Whether you are looking for new homes for sale or used ones, you have probably done your research. From the number of bedrooms and the size of the kitchen to your perfect neighborhood, you already have a firm idea of your home’s essential features. However, there is a wide range of factors that have probably not crossed your mind, such as roofing damages, leaks, mold, improper electrical wiring, or ventilation issues.
If you fall in love with the overall appeal of the property, you may ignore such essential issues. That is where an agent can help. While it may be your first time buying a real estate property, it is not theirs. They will detect the telltale signs of the issues mentioned above and tell you whether the investment pays off. They will also perform comparative market analyses and research your potential neighborhood’s safety, crime rates, demographics, nearby amenities, and so forth.
3. They are Legally Obliged to Protect your Interest
Many homebuyers choose FSBO (For Sale By Owner) deals over hiring a real estate agent. FSBO is the process of selling or purchasing a property without a representation of a real estate agent.
However, have you ever considered the safety of the personally identifiable information you need to provide when purchasing a home? When seeking FSBO deals, be prepared to be on the lookout for scams. For example, the FSBO seller may trick you into buying a house and take your cash without actually selling it.
Also, keep in mind that an FSBO seller is under no legal obligation to keep your sensitive data confidential. They could use it for a wide range of illegal activities, including identity theft.
The risk is high, so are you really willing to take it?
When hiring a real estate agent, on the other hand, you ensure your personally identifiable information stays safe. Your agent has a fiduciary duty to you, meaning they are legally obliged to act in the interest of a client.
4. Agents Handle a Lot of Paperwork for You
One of the most tedious aspects of house hunting is a lot of confusing industry jargon and mounds of paperwork you know nothing about. To save your time (and sanity), you will want a real estate professional to manage paperwork for you.
Once you hire an agent, they will keep tracking real-time market conditions, closing dates, inspection dates, mortgage approval contingencies, and similar factors you could not navigate by yourself. That way, they make the whole house hunting process faster and more manageable.
Additionally, a real estate professional review every piece of paper for you and focuses on even the tiniest detail of a real estate transaction, making sure that every document you sign protects your interest.
5. Realtors are Great at Networking
Real estate agents collaborate with other professionals involved in home selling or buying. Having a lot of industry experience, they already have a list of service providers they trust. That is one of the most obvious benefits of hiring a real estate agent.
When looking for a house to buy, you will need to collaborate with inspectors, real estate lawyers, and mortgage professionals. Instead of wasting time researching them on your own, you can ask your agent to help you. They will connect you with their network of professionals, making sure that every phase of your home buying process goes smoothly.
You can purchase a house without hiring a realtor, but why bother? A real estate agent helps you find your dream house and make the home buying process faster, safer, and simpler. The goal is to realize when you need assistance and hire the right people to help you.