Without a doubt we are a country of do-it-yourselfers. If we can learn how to lay tile, shingle a roof, change the oil in our vehicles or finish a basement, we do it. For many things, if you are willing to spend your time and energy learning a skill, particularly if it is something you enjoy doing, I say fine, go for it.
However, there are still some things that I believe need to be reserved for the experts; people who invested time and money into learning their profession. Most people probably don't want to sue a big corporation on their own-they want a competent attorney. If you have to have surgery, you probably want someone with a medical degree. While even I understand the mechanics of pulling a tooth, it is highly unlikely that I will attempt to do that myself. It just doesn't seem like the smart thing to do.
Likewise, undertaking the task of purchasing a home and financing the purchase is really a job that is best left to people who understand the process-the laws, the potential issues and the solutions to any problems that can occur as events unfold.
Let me give a brief overview of what a good real estate agent does for their client-the job encompasses much more than merely getting you into a home you wish to see. If you are a buyer, you will want to employ the services of an agent that specializes in working with buyers. An agent who works with buyers is one who will negotiate on your behalf to try to obtain the best price and terms on the property you wish to purchase. A good buyer's agent will be able to get you into any home you wish to see that is listed in your area's multiple listing service. (this is an organization that shares information on available housing listed by all real estate companies in a specific area) In many cases a good buyer's agent can also contact For Sale By Owner listings and get their buyers into those homes as well.
How do you find a good agent? Word of mouth is always a good way to go. If you have friends or family that worked with a particular agent and were happy with that person that is a good place to start. From time to time I am asked for a referral to an agent and I always try to place a buyer with someone I trust to do the best job possible as my reputation is also on the line when I refer a client to an agent.
Once you have decided which home you wish to buy, your buyer's agent will research sales in the area to be sure the home is listed at a price that is within the norms of the neighborhood. Your agent can even look up what competing homes are listed at as well as recent sales of comparable properties so that you can have confidence that you will not be buying an over priced home.
Your agent will assist you in negotiating with the seller on the terms of your purchase. You will not have to personally tell the seller-"I really hate your choice in carpet color and I have to consider the cost of replacing all that blue shag carpeting in my offered price." Your agent will do that for you.
Once your offer is accepted, your agent will work with you to coordinate any inspections that your lender requires or that you wish to have to be sure the property has no safety issues or problems that could cost you a significant amount of money to repair. If there are issues you wish to address, your agent will facilitate those negotiations and the follow up to be sure those repairs are made prior to closing the transaction.
Your agent will also be in communication with your lender to be sure your loan is on track. If for instance the appraisal comes back with a lower value than the agreed upon sale price, your agent is the one who will work to find the solution that is agreeable to you.
In most normal real estate transactions there are at least five or six problems that present themselves that need to be solved. Low appraisal, the presence of termites, conflicts about the closing date, who pays closing costs, day of possession, blemishes on the title of the home-are all problems that your agent is busy dealing with while you are packing getting ready to move. Some of the problems that occur you will never even know about. In addition, buyer's agents are paid from the proceeds of the transaction-in most cases-not by the buyer. So there is really no reason not to have your own agent.
Buying a home is the biggest financial transaction that most of us engage in. Don't you want someone who knows what they are doing on your team? I do. Even though I worked as a Real Estate Broker for ten years I wouldn't attempt to buy a home without one.
One last thought-I have had clients suggest that maybe I could help them through the purchase of a home. While I may know a lot about buying homes having worked in real estate for twenty odd years-I am not a licensed real estate agent. I do not keep up on state laws regarding the sale of real estate nor am I in my capacity as a mortgage broker, an agent or representative of the buyer in the sale of property. So if you are choosing to purchase without the aid of an agent I can not assist you in filling out your sales contract, negotiating your terms or commenting on whether or not conditions in the house should be repaired or could be problems in the future. I don't know the neighborhoods, resale value, what taxes are likely to be or if a home is overpriced. My role is limited to financing. I prefer to stay within the confines of what I know, rather than take on an expertise I don't possess. A good buyer's agent is worth their weight in gold. Don't buy a home without one.
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