A few days ago I wrote about selling a home on your own and talked about the truths and myths, the pro’s and the con’s and the statistics. Today I want to talk about buying a home on your own.
Can you find and buy a home without the use of a licensed real estate professional? Yes you can. However, why would you want to? why would you want to go through the process of trying to locate a home, set up times to see it (with the Seller’s Agent walking you through the home) and then negotiating the terms of the sale without an agent, not to mention dealing with home inspectors, appraisers, lenders, title companies and the risk of not knowing what to do next and losing the deal altogether!
Did you know you can get a Buyer’s Agent to do all this for you…and typically for free? That’s right…FREE! Majority of the time, a Real Estate Agent working on your behalf to help you locate, negotiate and buy your next home gets paid a portion of the commission paid to the Seller’s Agent, this means little to no money out of your pocket for all that support! Now, there are some situations where you, as a buyer, will pay your Buyer’s Agent out of your pocket. Typically, this is for mileage from driving you around town to look at homes, hourly for handling all the ‘particulars’ or paperwork, or even a closing appearance fee. Regardless, you come out ahead if you don’t try to do it on your own.
Many of the same reasons mentioned in “Can’t I Just Do It Myself (Sellers)” are true for buyers. In the current market, the inventory is scarce (homes on the market), buyers are ending up in bidding wars over properties and sometimes, by time you locate the home for sale and set up a time to see it, it is sold. It helps having a professional lead you through this. They know what the trends are, what a home is worth, how to negotiate a deal to improve your chances of winning that bid war and can locate homes faster than you can.
Risk still applies on the buyer’s side as well. If you default or miss a deadline, they can keep your earnest money, cancel the contract with you and even sue you! There have been times that a unrepresented buyer innocently missed a deadline and defaulted on the contract and the seller’s got to keep the earnest money (sometimes $5,000 to $8,000). An Agent has the tools and systems and experience to mitigate this risk for you. Why not use one?
Feel free to contact me about anything in this post or with questions. You can call me at 720-204-8596 or by email at JustinPSheets@KW.com
Justin P. Sheets
Cornerstone Real Estate Team
Keller Williams Preferred Realty