So you’re thinking: why not cut costs by going through the home buying process on my own? There are so many things involved in the home buying process that can make it very costly on your time and money. On the one hand, you need professionals when searching for homes because it takes time to find the right property. Apart from that, here are five other reasons buying a home without a realtor might not be a wise idea:
1. Problem of dual representation
Dual representation means the seller’s agent represents both the buyer and the seller. Obviously, the agent will promote the interests of the seller and you may have to disclose your weak points, like financial standing, to the seller’s agent. Although the offer of dual representation seems attractive as the seller’s agent handles all the paperwork and decision making, it doesn’t usually work in your favor as the buyer.
2. Little or no information about the house’s history
It is the job of a good buyer’s agent to research a property and find out facts about the property. He has the resources to carry out this research. As a buyer going solo, it is very likely you do not have enough information about the house you plan to buy.
3. Overwhelming Paperwork and Questions
Having a realtor before house hunting makes the home buying process more convenient. Your realtor will guide you on securing your finances, fixing up your credit and locating good mortgage options. In the closing stage, you can just skim through and sign the documents your realtor, who works in your best interest, has prepared for you.
4. Buying could take longer than expected
Purchasing a house is not really a weekend undertaking. Without a real estate agent, you will need to invest several hours making investigations before you make an offer, from projected utility cost to community zoning limits.
5. Learning a new community can be overwhelming
If you buy a FSBO home in a new city or state, then you may have a difficult time finding your way around the new area. The use of an agent who is experienced in the area you want to live in can be a great source of essential information.
A buyer going solo in a new area may find it difficult to find a home that suits his needs as he or she does not have the advantage of knowing the intricacies of this specific area of the market. A real estate agent has the essential information that can help you locate your dream home and shape an offer that is realistic and in your best interest.
Comments(3)