Del Aria Team says, A survey by the National Association of Realtors reveals that 88% of home buyers rely on a buyer's agent when buying a new house. However, if you're selling a home within your family, you can go about the process without a real estate agent. Of course, you will want to consult a real estate lawyer to review paperwork and conduct a title search.
Risks of buying or selling a home without a real estate agent
Buying or selling a home without a realty agent has certain risks. Home sellers may not disclose problems or undervalue their homes, which could result in the buyer overpaying for the home. Additionally, a buyer's agent can research the market value of a home, so the buyer can be assured that the home is a good deal. Caveat emptor, or buyer beware, applies in some states.
While buying a home without a real estate agent can save a lot of money, it may not be the best option. Real estate agents typically earn 5% of the home's value, which can add up to several thousand dollars. In addition, hiring a real estate attorney will protect you in case of a lawsuit. However, hiring an attorney would likely cost more than the savings you'd make by selling or buying without a realtor.
A real estate agent will understand your goals. For example, if you have kids or a large dog, an agent will know which homes have a big yard or that are incompatible with your needs. An agent will also be able to help you find the right home inspector. For a family of four, a home with multiple bedrooms will be more appropriate. However, a home without a real estate agent may have many advantages and disadvantages.
Benefits of having a real estate agent
While most people can handle buying or selling a house on their own, hiring a real estate agent makes the process much easier. Agents are often paid on a commission basis, meaning that they split that fee between the buying and selling agents. This means that when you use a real estate agent to buy or sell a home, you'll receive their advice and expertise.
Having an agent in your corner will help you avoid costly mistakes. A real estate agent can spot potential issues that you won't even notice. An agent can even hire a home inspector, who can give you a detailed report of any problems with the property. Your real estate agent will also know what reasonable repairs are for your property and how to approach these requests. A real estate agent can help you avoid making a bad deal and make the sale go through much more smoothly.
In addition to helping you buy or sell a home, a real estate agent can also be your go-to resource after the deal has closed. Although real estate agents aren't lawyers, they're still good resources long after the deal has been closed. A real estate agent's full file of all transactions is required by law, and they'll be able to help you protect that information in case trouble arises.
Cost of having a real estate agent
When you buy or sell a home, you will typically pay a commission to your real estate agent. The amount of your commission is not set in stone, but it can range from 3% to 6%. In general, agents receive a commission from the seller, but you should discuss your options before signing any contracts. The fee may include a percentage of the sale price, which can add up to a significant amount. Whether you choose to pay a flat fee or a percentage of the sale price will depend on your preferences.
In addition to commissions, you will also have to pay escrow and closing costs. These fees are typically split between the seller and buyer, although in some cases, they are the same. In other cases, you may pay the real estate agent separately. In addition to closing costs, your agent may charge a fee for advertising the home. These fees are usually 6% of the net sales price.
The cost of using a real estate agent when buying or selling your home will depend on how experienced they are. An agent with extensive experience should be your first choice. Unless you want to pay high commissions, you should find a new agent with solid experience. Experienced agents share your values and can walk you through the process. That way, you won't be overwhelmed with details and jargon.