Lately, the real estate world has witnessed countless headlines about the new NAR settlement. This has a lot of consumers questioning real estate agents and their value. Ultimately, every buyer or seller should have their own real estate agent representing them, but it is a common misconception that there is no need for one. While you may not require one to physically get the deal done, it is always in the buyer or sellers best interest to have a professional in their corner. Let's dive into some of the reasons why YOU should hire a real estate agent for your next real estate transaction.
Representation:
First and foremost, it is essential to have a professional who knows the industry rooting for you and looking out for your best interest. Buying a home involves a LOT of money and is most times the biggest financial transaction you will ever complete in your lifetime, why would you not want someone looking out for you. There is a saying that I think can ring very true for home buyers specifically, "Great service is expensive, but bad service costs you a fortune."
Imagine this, you read some of the recent headlines about seller's that "no longer have to pay the buyer's agent" and the buyer is responsible for hiring and paying for their own agent to represent them. You have the understanding that you can go straight to the seller's agent and save yourself some money. But a few months after closing, you find out there was a huge issue with the home, or maybe during the transaction information was not disclosed that you wish you would have known. In fact, had you known this information, you would not have bought the home. THIS is exactly what can cost you a fortune in a bad scenario. As a home buyer, you need to keep in mind that the seller has their own agent, and that agent has fiduciary commitment to the seller and looking out for their interests. That Listing agent's job is not to look out for you or your interests, their commitment is to the seller.
I like to put it like this, would you go to court with the same lawyer as the person whom you are suing? Probably not right?? You understand that the defendant's lawyer works for them and their best interests, their job is to get your case thrown out or get the defendant the best deal possible. With real estate agents, it is the exact same. It is in your best interest to have your own professional in your corner! Make sure you interview agents and see what value each one provides to make the best decision for yourself.
Contracts and Negotiations:
Contracts and negotiations can be very tricky. It's not every day that you buy or sell a home, so it is uncommon for someone who does not interact with real estate transactions on a regular basis to understand the contracts, ins and outs, and negotiating tactics that you can use. Again, you want someone looking out for you and your best interest. A buyer agent's job is to get the best deal for the buyer and keep them protected, looking out for their interests at all times.
The value of having an agent is immense, but a big portion of that value falls back on their ability to explain contracts, transaction timelines, rules and regulations, and more to the buyer. The agent should be letting you know what you can and cannot do, when you are and are not protected, providing you options conducive to your goals, and making sure you are aware throughout the entire process of what is going on and what risks are involved.
Another aspect of a realtor's job is to negotiate. In real estate, you can ALMOST negotiate anything, but there are methods to the madness! It is important that you understand what you can negotiate and what you cannot, and then having someone to fight for you to get what you want and need. Do not rely on yourself for negotiations if you are unfamiliar with real estate contracts, the processes, and ins and outs of the transaction.
Tools:
One huge perk to hiring your own agent is having access to all the tools and resources they have for you. The MLS is a big one, but it is only one of many. Most agents have a list full of contractors, inspectors, title companies, lenders, and more partners that can help you in every aspect of the home buying and home selling process, and even afterwards!
It is an absolute game changer to have all of these resources at your disposable throughout the home buying/selling process and beyond. If you do not have a professional by your side, you're the one who has to scramble to find what you need in a timely manner, and just hope to god they are trust worthy! Keep in mind, the entire transaction and contract are usually time-based, so you have to be diligent and act in a timely manner to get things done.
Conclusion:
At the end of the day, whether it's buying a home, going to court, investing in stocks and bonds, or whatever else you want to do, it's always in your best interest to have a trustworthy individual in your corner guiding you in the right direction. And yes, there are untrustworthy individuals out there who you should not hire. The good news is, there are millions of real estate agents out there and you can interview an indefinite amount of them to find the person you trust and feel is your best fit. Do not fall victim to the headlines or misconceptions of the real estate industry and end up feeling exploited and cheated in one of the biggest transactions of your life.
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