If you’re considering buying a home, you’ve probably wondered if you need a real estate agent or not. Spoiler alert: You do. I’m not just saying this because I am one, either. There are real, expensive risks involved when you do not use a realtor. Follow along to find out the cons of not going with a professional.
Purchasing “For Sale By Owner” Without An Agent
In this instance, it’s just you and the seller. Two average folks with zero skills or professional experience in real estate, making a legally binding deal. What could possibly go wrong? A few things:
Overpaying
The owner sets the price, and who knows how much homework they did prior to doing so. Did they just ask Billy Bob down the road what he paid for his home that’s 1K Sq Ft larger? Maybe. Homeowners traditionally overvalue their homes, and the buyers are expected to pay that. Overpaying is a very real possibility when you act without a real estate agent.
Disclosure Problems
Some states do not require problems be disclosed when selling a home. However, Real Estate agents are required to regardless. They cannot turn a blind eye to potential issues that are discovered. Sometimes, homes are literally listed “as-is” which should raise about a thousand red flags for you.
Inspection Issues
Home inspection reports can be difficult for laymen to read. Every potential issue is listed, so it could be anywhere from 20 to 50 points long, and some will seem major (but really aren’t) and others will seem minor (but really aren’t). Understanding an inspection report is imperative to getting everything you need and nothing that you don’t. Additionally, every area has different types of inspections that are recommended, and an agent is able to guide you on what you need looked at.
Neighborhood Knowledge
Realtors know neighborhoods better than anyone else. They know school districts, property taxes, HOA rules and so much more that may factor into your decision to buy a home there. You’re choosing an area, not just a home, to live in.
Appraisal Problems
Overpaying for a property can cause you to have appraisal issues too. The difficulties increase when you deal with buyers and sellers without agents. It’s kind of like the blind leading the blind, and it’s up to you guys to figure it all out and settle any problems you have.
Paperwork and Laws
Real estate law isn’t something that you learn overnight, and it varies greatly by area. You must be able to read a contract properly before committing to it, or you could have some serious problems down the road. Mistakes here can lead to legal battles that simply aren’t worth it when they could have easily been avoided with a Real Estate agent or attorney, if nothing else.
The Bottom Line
Put aside any bias you may think I have and hire a professional to handle all your Real Estate dealings. You’ll be protecting yourself and your investment, and you’ll never regret knowing that everything was done fairly and above-board. Get in touch with me today to discuss your buying and selling goals!
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