Reasons for Purchasing with a Real Estate Agent

Some people wonder “Can I buy or sell a home by myself – without the service of a Real Estate Agent?”  The simplest answer is yes.  But, the most obvious follow-up question is “why would you?”  Before we go into the reasons why you should use a Real Estate Agent, let’s talk about what a Real Estate Agent is.

 

Did you ever wonder why the word Agent is used to describe a person that helps you buy and sell your home?  Let’s look at the meaning of Agency, and the meaning of fiduciary duty.  Agency is a relationship that is created either by express (like a writing or words) or implication (like by actions of the parties) or by law, where one person (the Agent) is authorized by another person (the principal) and given the authority to act for that person.

Your Agent is under a fiduciary duty to you, the home buyer or home seller.  This means that your real estate agent must act in your best interest.

A fiduciary duty requires the preservation of, among other things, trust, confidential information, and good faith.  The Agent must put his or her clients interests ahead of their own.  That’s a standard that must be maintained, and that is good news for home buyers and home sellers!

 

So, now we know that when you hire an Agent, your best interests are being cared for by a professional.  But you may be thinking:

 

  1. “What else does a Real Estate Agent do for me?”
  2. “Can I save money buying or selling a home without an Agent?”
  3. “Can I save money buying a for sale by owner (FSBO) home?”
  4. “Can I just look online for my new home?”

 

 

Great questions!  Let’s look!

 

1. What else can a Real Estate Agent do for me?
2. Can I save money buying or selling a home without an Agent?
3. Can I save money buying a for sale by owner (FSBO) home?
4. Can I just look online for my new home?

Purchasing real estate can be complicated. Agents make the process easier.

Let’s face the facts. There is an abundance of paperwork involved in real estate. A general purchase contracts has 40-50 pages of paperwork that you most likely are not familiar with. Checking the wrong box, or omitting information could cost you thousands of dollars in mistakes. This rule goes for the seller and for the buyer. You need guidance and protection during the contract portion of the transaction. Mistakes will end up costing you thousands of dollars more than if you would have simply used a real estate agent.

Moreover, the team of the Solberg and Powell Group has at its core a retired peace officer of 20 years in Chris Solberg, and a current practicing attorney in Dan Powell. This combined experience carries with it many years of training, experience, and skill obtained in the art of negotiation.

The simple answer… Probably not!

There are people that will give a buyer false confidence by saying “you won’t need an agent when purchasing a home”, and “you will save money”. This is usually not the fact. The agent fees are already built into the sale price of the home. The seller’s agent enjoys your savings by making the commission you would have paid an agent; saving you nothing. So, if you want to attempt a trial-and-error style of real estate, you may be entering contractual obligations the consequence of which you won’t realize until the close of sale and it’s time to pay the final bill. This could cost you thousands of dollars more that you would have paid an agent representing you while buying your home. Why would you attempt this on your own?

Both the Buyer and Seller usually benefit greatly by using an Agent.

This is very similar to the question addressed directly above. People may think that “I will save Agent commission if I buy from a For Sale by Owner!” This is also likely false. Why? Well let’s look at a sellers’ mindset. If they believe they can get $500,000 for their home, but don’t want to pay an agent any commission, and certainly you don’t want to pay any commission, why not just consummate the deal at $500,000? Where is the savings? The Seller may get more money because they don’t need to give any of the $500,000 to their Agent, but what does the Buyer get? Nothing. Maybe the Seller will be good enough to share this savings with you. But don’t you think they may just raise the price a bit to pay you off? With your own money!? As a matter of fact, a For Sale by Owner might just have a pretty high opinion of the value of their own home, pricing it higher than it should be. And a Seller that is not represented by an Agent usually doesn’t market the home as well as when an Agent helps them. Thus, they may not be getting a fair price for the home on a do-it-yourself attempt. Agents benefit both sides and help create the most equitable outcome for the parties involved.

An average of 90% of home buyers searched online during their buying process.

We are now in a time where almost anything can be found online.   The question becomes – do you trust the information you clicked on? Is the information you searched accurate? Who is at fault if the data you collect online is false and how might that slow down your search? As you can clearly see, if it is merely chance you are taking when browsing the Internet for real estate information, you put yourself at risk.

There are several reputable online resources for finding your new home.  Our website is one of those resources you can trust.  You can search with a variety of filters including schools, number of rooms and baths, square foot, lot size, of course price, and many others.  You can also view photos and schedule a tour with a few simple clicks and you will be assisted by a Realtor ® to help guide you through the rest of the process. As a matter of fact, our website is more current than Zillow® and many of these other kinds of websites.

In Conclusion:

 

It is easy to be guided in the wrong direction during the purchase process.  Most people are not aware of the various deadlines, disclosures, inspections, and that failing to comply with contract time frames may be a breach of contract that could cost you thousands of dollars. Why would you do this alone? We can help! From helping with all of the paperwork, connecting you with people to get your financing approval, negotiating, and saving you money, we can also help find your perfect home and save you precious time!

 

Call us today!  Our Team is here to help!

 

 

 

Chris Solberg

DRE # 02155933

Dan Powell

DRE # 02156105