If you're starting the home buying process and looking for homes on your own, you may be wondering why you even need to work with a realtor. Here are a few reasons why working with a realtor can be in your best interest.
Realtors Work For You For Free
The way that realtors get paid is that the seller's realtor negotiates a commission based on the price of the home, which is usually around 6% of the sales price. That commission is then split between the realtors for both the buyer and seller which is how they both get paid for their services. The home buyers do not pay for this commission directly, but the percentage is already negotiated before the home has gone on the market. This means that the seller's agent is going to keep that entire commission if you try to buy the home alone. It is always to your advantage to have a realtor work with you for this reason, because it doesn't cost you a thing.
Realtors Have Access To Pocket Listings
Think that you're looking at every home for sale by checking the MLS through real estate search engines? You may be surprised at how many homes are actually out there. That is because realtors often have access to pocket listings, which is when a seller wants to sell their home but not do all of the stuff that you typically see with online listings and a for-sale sign in the front yard.
Sellers list their home secretly as a pocket listing for a few reasons. They may want to limit the number rof people touring their home with the current pandemic, as a pocket listing will cause realtors to only show the home to serious buyers. The seller may also want to get an idea of how much the home will sell for before officially listing it. Making an offer on a pocket-listed home can definitely help avoid bidding wars and the unnecessary stress of trying to buy a home that is hot on the market.
Realtors Help With Negotiations
It is not very common to make an offer on a home at the asking price, since there is a bit of research that goes into determining what a home is really worth. Your realtor can help with doing the research of finding comparable homes, and determine how much you can offer below the asking price. This can help save you a lot of money by figuring out if a home is priced correctly.