There are significant advantages and disadvantages to buying a home without an agent. Experts suggest that buyers do the market research and look at the pros and cons of hiring a real estate agent before making a final decision. Below we look at a few things to consider.
Pros of buying a home privately
The biggest draw to buying a home without a realtor is cutting out the middle man. There are a lot of moving parts and complicated processes when it comes to home purchases, and sometimes having someone facilitate these decisions can only make it even more confusing. Hiring a realtor can also be costly, especially if it’s a long process. In some cases, home sales can move much more quickly and at more reasonable rates than if you would be working with a real estate agent. Even more rarely, you could already have a connection to the seller and already have knowledge of the home’s history.
Cons of choosing to work without an agent
If you’re not already privy to background info, not knowing the history of the home is a big disadvantage. You can also get into situations that become sticky – like needing to fully disclose income and tax forms in a dual representation situation. You will not have the negotiating experience that the expert has meaning that you cannot get a lower closing cost as easily as a property firm. Using an agent that sells and buys homes can be bad because he or she has to keep both parties interest in mind, whereas a buying agent only helps you get the home you want for the price you can afford.
Will you find the hidden costs in buying a home?
If your property is in a Homeowner’s Association, there will be extra costs when purchasing the home. Some HOA’s require a one-time fee and yearly payments. Others let you pay monthly dues. Buying your home may take months between paperwork, deadlines, and negotiations. Do you have the stamina to stand strong and get what you want while you maintain your work or home life? This job is almost impossible if you are moving to a new city. The hardest part about relocating to a new area is that you have no experience where the agent knows everything from where to get the best ice cream to the nicest place to jog every morning.
Finding a new home is not as hard as negotiating the details of the purchase. An agent can take the stress off of you and your family by filing the paperwork and handling the contract negotiations. You can expect to pay about three and a half percent of the home price for the agent fee which is worth it when it comes to the hassle. And if anything, a realtor may help you stay sane throughout the whole process!