Buying or selling a house can be an exciting process. Normally people would reach out to a realtor for the process but otherwise some people tend to do things on their own. A realtor can help you with a lot of things but sometimes it is wise to go on, on your own. People may save some money by going without a realtor but it has both pros and cons attached to it. Let’s discuss!
Pros of Buying House Without a Real Estate Agent
Potential To Save
Saving is probably the biggest reason people prefer not hiring a realtor. For some it may just be all the convincing they need. Typically, a real estate agent’s cost is 5% to 6% of the sale price, which could be solely paid by the seller or could be an even split between the two parties. You might be able to secure an estate at a lower price by not using a real estate agent, since there would be only one agent involved in the process and that is from the seller’s side.
Eliminating the Middleman
Eliminating the middleman could seem appealing if you are looking to deal directly with the seller. You will not be waiting for any callbacks or messages. You will basically be an agent yourself. Meaning, that you will have control over everything and will make sure that your demands, thoughts and preferences are communicated directly to the house seller and heard properly as well.
Having the Upper Hand via Direct Dealings
In some cases, it might be that your friend or a relative might be selling the house. In such cases you will not be needing the help of a real estate agent, since you already have a direct relationship with the seller. You will properly be able to negotiate as well as put down conditions and hear the seller to reach an agreement. Since it will be you, dealing with someone you already know, the nature of negotiations is going to be less rigid and easy.
Cons of Buying House Without a Real Estate Agent
Can’t Match the Knowledge of a Realtor
You can memorize and get well familiar with all the terms related to mortgage and home buying but you cannot match the knowledge of a real estate agent since they have every trick up their sleeves and are there to educate you about the process. There are a lot of documents and forms that one has to go through while purchasing a house and you would not know everything about that and this is why a realtor proves helpful in such cases.
Real estate websites have no doubt taken the internet by storm. You can visit hundreds of sites and get to know about up-to-date listings whenever you want. However, you still will not be able to reach every house in a neighborhood for sale and real estate agents in this respect have all the listings with them. They will help you find the hidden gems and shall also notify you before a state even goes up for sale.
Assessing a Potential House Becomes a Problem
When inspecting a house, since it is only you, who is going to be inspecting and checking everything, how confident are you with your house assessing skills that you can solely rely on them and do you think that it is going to be more in-depth as compared to the attention of a realtor? The answer to this is that a realtor knows about every material that has been used to build the house. He could present the house history as well, which otherwise you won’t have access to. To ensure your investment is safe, employing the knowledge of a real estate agent is important.
Negotiating Isn’t a Walk in the Park
Negotiating is an art, especially when it comes to buying or selling a house. You might have thought that you had good negotiation skills to woo the buyer into accepting your price but be assured that sellers and buyers are not naïve and will probably have an agent right beside them. A realtor in such cases will take the lead and secure you a good deal based on many factors that influence a home’s value. Otherwise, your emotions and inexperience could result in you losing a potential buyer or a seller.
And there you have it, make sure that you consider all the pros and cons of buying a house without a buyer’s agent. What maybe a win situation in one’s case, might not be the same in yours as well.