Buying a Home without Representation Can Be Risky
by Amy Serra Albright 03/01/2021
Photo by Gerd Altmann via Pixabay
It may be tempting to purchase your first home without the help of a real estate agent. If you want to risk not having professional help to buy your first house, you can, but you’ll be leaving a lot of benefits on the table and assuming all the risks.
The Benefits of Using a Buyer's Agent
A buyer’s agent works entirely on behalf of the buyer in the purchase process. The benefits of using one include:
- Expert negotiations – Professional agents know the market, costs and what you’re looking for. They can combine the three, plus other variables, to create a formula for negotiating within both your price and comfort levels.
- Full disclosure – A real estate expert knows what to ask regarding disclosures about the property. They’ll ask for items you may not even think of because of their experience. It’s not that the seller is intent on deceiving you, often they don’t know what to disclose either.
- Neighborhood specialist – Some agents choose to represent buyers in specific neighborhoods and can tell them about local facts such as planned road construction or rezoning issues that might have an impact on your decision to buy there (both for and against).
- Closing costs – Your buyer’s agent fights for the best deal for you, the buyer. Relying solely on the seller’s agent could end up costing thousands in extra charges.
- Lender recommendations – An experienced buyer’s agent knows which lenders tend to close on time and which ones might drag out the process. If you’re closely timing a move, your agent can help you avoid being bogged down with a slow underwriting process. They’ll have recent experience with rates, terms, appraisals and comparable sales.
- Making the offer – Real estate purchase offers have a lot of forms and papers that cover all sorts of things from contingencies to mold and asbestos mitigation. Your agent knows the right forms and what needs to go into your offer to both protect you and give you the best chance of having your offer accepted.
- Inspection referrals – having a home inspection protects buyers from unexpected repairs and required renovations once the deal completes. Your agent knows reliable inspectors that look for basement seepage, dry rot, hidden mold, damaged roofs, sewer line issues and a host of other things. You might not think to check the chimney, but your inspector will, saving you from a potential house fire or other issues down the line. A failure in a major system such as electrical wiring, HVAC, or plumbing can wreck your budget if you don’t know about it.
Bottom line is that purchasing directly from the seller without the protection of a knowledgeable agent puts you at risk for all kinds of issues. Remember that the seller pays both agents from the proceeds of the sale.
