| ople choose to use a real estate agent and some | | | | is 4 times longer than what is typical. A buyer might |
| people choose to go it alone. One thing I have | | | | put in offers on multiple properties with long option |
| noticed over the years is that a number of seasoned | | | | periods. The buyer will wait and see if the market |
| investors looking in a new city will seek out a good | | | | appreciates. If the market has appreciated the buyer |
| agent while novice investors will frequently go it | | | | buys the house at now and undervalued price. If the |
| alone. I have even had a number of successful real | | | | market has gone down the buyer walks away. |
| estate agents seek out my help when they are | | | | 5. Misperception of a benefit of going it alone. Buyers |
| moving to our city. Why do some of these seasoned | | | | frequently think that by not using a buyers agent |
| investors choose to work with an agent? Below is a | | | | they will get a better deal from the seller. In most |
| list of 7 benefits of using an agent. | | | | situation the listing agent asks for 6 percent from the |
| 1. Understand potential restrictions of the property. I | | | | seller. If a buyer comes with an agent the listing |
| recently heard a story from a friend at the city | | | | agent splits the 6 percent with the buyers agent. If |
| development office in Austin Texas. A couple had | | | | an unrepresented buyer comes the listing agent |
| saved up for their retirement. They wanted to retire | | | | keeps the whole 6 percent. On the selling side, For |
| and live out in the hill country. They went to the | | | | Sale By Owners (FSBO) often think they are saving |
| foreclosure auctions. At the auction they purchased a | | | | alot of money by avoiding a listing agent. Nationally, |
| lot for 500,000. It had great views and they were | | | | FSBO homes sell for 14 percent less than agent listed |
| going to build their dream house on it. They had | | | | homes in the same neighborhoods. In addition alot of |
| researched the lot before the auction and found it | | | | FSBO's still end up having a buyers agents involved. |
| was zoned SFR which means a single family | | | | There is also money spent on advertising. Since an |
| residence can be built on it. After purchasing the lot | | | | agent has experience marketing homes the agent |
| they started plans to build their retirement house. At | | | | often can spend money more effectively on |
| this time they discovered the lot was in the 25 year | | | | advertising. Agents often know which advertising |
| floodplain. My friend at the city development office | | | | sources produce the most potential buyers. |
| explained that the lot could not be built on and was | | | | 6. Save time when looking for listings. Looking for |
| basically worthless. | | | | listings without an agent can take up large chunks of |
| 2. Know about new developments that might affect | | | | time. When looking with an agent you can see |
| a properties value. A good realtor will know of | | | | several homes in a few hours. When going it alone |
| proposed new developments that might affect | | | | you have to call the listing agent for each house and |
| different properties in which a buyer is interested. | | | | wait at the house for the agent to arrive and open |
| Whether these developments are positive or | | | | up the house. In addition agents often know houses |
| negative can be valuable information when weighing | | | | which are not listed or may have already identified |
| different housing options. | | | | potential problems with a particular house of interest. |
| 3. Find potential problems with a property. It is | | | | 7. Insure Security. When a home is listed with a |
| always a good idea to have a home inspector look at | | | | broker, agents coming to the house have to usually |
| a potential house. However, a Realtor is a good first | | | | log in. This allows the listing agent to keep a record |
| line of defense to see if a house has inherent | | | | of every party coming into the house. Since their |
| problems. A Realtor that can know about common | | | | business is on the line, agents are more likely to |
| problems, such as foundation or electrical, that affect | | | | protect the house from damage or theft. For a |
| a particular neighborhood. | | | | variety of reasons, it is generally not a good idea to |
| 4. Understand contracts specifics. Whenever you buy | | | | have random people you do not know come into |
| or sell a house you are entering into a large personal | | | | your house. Often sellers simply have a phone |
| transaction. It helps to have someone on your side | | | | number, but that phone could be their house, a |
| that deals with these types of transactions on a daily | | | | friend's house, a pay phone, or even a stolen phone. |
| basis. A Realtor can help you understand contracts | | | | Searching for a home can be stressful and difficult |
| and can explain what is typical for your area. The | | | | but it can also be fun. Whether you choose to look |
| most common pitfall into which I see unrepresented | | | | for a home on your own or with a Realtor its a good |
| buyers fall is to become involved in an atypical | | | | idea to be a extremely careful when you seek out |
| contract that is not to their benefit. For instance a | | | | your dream home. |
| seller will sign an offer that has an option period that | | | | |