Should you hire a real estate agent?
Are you in the real estate market for a home? You may or may not have considered buying a home on your own, but unless you’re a real estate agent, you should probably think twice about it. Even a skilled negotiator may find that he or she in over their head. With your home being perhaps the single largest financial transaction of your lifetime, the safest thing to do is hire a real estate agent that knows their stuff and will work hard on your behalf. Here are four other reasons you’ll want to hire an agent.
No Direct Cost for Buyers
When you’re selling a property, you’ll have to pay the real estate agent commission to both the buying agent and the selling agent. This isn’t the case when you’re a buyer. As the buyer, there’s no direct cost of hiring an agent. That’s because the seller is paying your agent’s commission. With a home most likely being the single biggest financial transaction of your lifetime, don’t you think it’s worth it to hire a real estate agent that knows their stuff?
Needs vs. Wants
When buying a home, it can be tough to distinguish between a home-buying need and a home-buying want. Many buyers these days seem to have their needs and wants mixed up. Features that used to be considered wants – granite countertops, hardwood floors and stainless steel appliance – are now needs with many buyers.
When you hire a real estate agent, they can objectively help you distinguish between a need and want. They can assist you in finding a property in your desired neighbourhood, within your housing budget. This can save you time and help you avoid heartbreak by only looking at properties you can afford.
Knowledge is Power
As the saying goes, knowledge is power. Real estate moves at a breakneck pace these days, especially in seller’s markets like Toronto. If you want to stay one step ahead of the competition, it’s important to have up-to-date sales data. That’s where a real estate agent comes in handy. When you hire a real estate agent, they can share the latest sales data from comparable properties in the neighbourhood. This helps you determine a fair price to pay for a property, indicating where value can be home in each home. You’ll be less likely to overbid on a property and pay more than you have to.
Negotiate on Your Behalf
Negotiating is the most stressful part of buying a home for most people. It mostly comes down to price. Offer too little and you’ll lose out on your dream home. Offer too much and you’ll end up overpaying. An agent can help you come up with a game plan and figure out a fair amount to offer for your best shot at getting a property.
The offer price isn’t the only part of a deal that may need to be negotiated. When you hire a real estate agent, you want someone who can read the situation well. Your agent can determine if the seller is desperate to offload the property and might be willing to accept a lower offer price. Your agent can also help you figure out whether to make a clean or conditional offer.