What does a real estate agent really do? I think many people started questioning the value of an real estate agent lately.
I bought my first house with a realtor. Later on I became a full time realtor myself, helping my clients with both purchasing and selling their properties. I also created diyhomebuyer.com, to help people buy a home without a real estate agent.
So as someone who have been on the both side of the process, I can provide an unbiased insight into what does a real estate agent really do.
In this article, I will mainly focus on the buyer’s agent and explain the value they bring, since this role has been under attack from both the public and the Department of Justice.
Buying or selling a home is one of the most significant financial transactions most people will ever make. Navigating this complex process can be challenging, which is why many turn to real estate agents for help.
But here at diyhomebuyer.com, we believe the value that a buyer’s agent (real estate agent that represent the buyers) bring has changed drastically the past few decades with the rise of technology. Don’t get me wrong, there is definitely value in the services they provide, but is it worth the 3% commission of the home price? Let’s discuss.
What exactly does a real estate agent do, and what value do they bring to the table? Let’s delve into the essential functions and benefits of working with a real estate professional. Each of the following points is found on the internet, and I will add my honest opinion to it.
Understanding the Market: A real estate agent has in-depth knowledge of the local market. They understand current market conditions, property values, and neighborhood trends. This expertise allows them to provide accurate pricing advice, helping sellers set competitive prices and buyers make fair offers.
DIYHomeBuyer.com’s Take:
There’s definitely truth in this. An experienced agent who looks at the market more closely than the average homebuyer. I personally study the data from my local realtor MLS every month to understand how the market is reacting due to the economy from unemployment rate to interest rate, months of inventory in that particular neighborhood, etc.
Since most of the data is guarded behind the local MLS, it would be difficult for the average homebuyer to gain access to these valuable information to study the market. This is definitely one benefit of having a realtor by your side when buying a home.
Access to Listings: Agents have access to the Multiple Listing Service (MLS), a comprehensive database of properties for sale. This access ensures they can provide clients with a wide range of options that fit their criteria, often before these properties are publicly available.
DIYHomeBuyer.com’s Take: I personally don’t think this is that valuable at all. Before I became a realtor, I bought my first house with an agent who promised that they will bring me “off-market” properties. During the few months of working together, most, if not all of the homes I toured, was found via public home search sites like Zillow and Redfin. And often I was the one who found it.
Now, finding a home is just a part of the service that a buyer’s agent bring to the table. This used to be a big part of the process, but with the rise of technology in the space, many of the home buyers can now access most of the listings on the MLS.
There are instances that a buyer’s agent will find homes off market (not on the MLS or Zillow), usually for investors. If they go above and beyond for you like that, I think they are definitely worth the fee they charge. But most of time, for normal transaction, probably not.
Finding the Right Property: For buyers, an agent listens to their needs and preferences to find suitable properties. They schedule viewings, provide insights about the properties, and help clients evaluate the pros and cons of each option.
Making an Offer: Once a buyer finds their ideal home, the agent assists in making a competitive offer. They advise on the offer price based on market analysis and recent comparable sales, helping clients avoid overpaying.
Negotiation Skills: Real estate agents are skilled negotiators. Whether you’re buying or selling, they work to get you the best possible deal. For buyers, this might mean negotiating a lower purchase price or better terms. For sellers, it involves securing a higher selling price or favorable contract terms.
DIYHomeBuyer.com’s Take: Each of these points is definitely valid. But I think many of these services you can learn and implement yourself, including how to find the right property, how to make an offer, and how to negotiate, with the resources here at diyhomebuyer.com.
Finding the right home can be done via Zillow and Redfin. Although you will want to spend time to learn the neighborhood especially if you are relocating to a new city. There are many resources online, including YouTube, that will take you on a tour of the area. Funny enough, most of these types videos are done by realtors.
Making an offer is a big part of what a buyer’s agent do. All realtors are trained on the promulgated forms created in each state for the home purchase process. However, if you are up for it as a DIY Home Buyer, you can use resources here at diyhomebuyer.com to learn more about these contracts. But it’s best to consult a realtor or an attorney when using these forms. If you need help finding a trusted realtor or a real estate attorney in your area, feel free to leave message here at our contact us page, and we will connect you to a trusted advisor in your area.
Knowing how much to offer is also a skillset that a buyer’s agent should bring to the table. Making sure clients don’t overpay, or making an offer that has the highest likelihood of getting accepted depending on the market condition, these are important knowledge to have. If you also want to possess these skills when you are making an offer, be sure to use resources here at diyhomebuyer.com to learn more on how to make an offer that gets accepted without overpaying.
Negotiation is definitely something you must learn if you want to buy a home without a realtor. But one benefit of negotiating without an agent is that, you have full control on what you want to do and can walk away anytime you want. This is definitely adds to your advantage.
Managing Documentation: Real estate transactions involve a significant amount of paperwork, including contracts, disclosures, and agreements. Agents ensure that all documents are correctly filled out, signed, and submitted on time, reducing the risk of legal issues down the line.
Understanding Legal Requirements: Agents are knowledgeable about the legal aspects of buying and selling properties. They ensure that all transactions comply with state and local laws, providing peace of mind to their clients.
DIYHomeBuyer.com’s Take: This is another big part of having a buyer’s agent on your side, especially if you are less organized. Buying a home has a lot of steps, from getting a pre-approval from the lenders, to depositing your earnest money, to closing on the home, the paperwork will add up. If you want to buy a home without a realtor’s help, be sure to fully utilize tools here at diyhomebuyer.com to navigate the process successfully.
Home Inspections: After an offer is accepted, an agent coordinates the home inspection. They recommend reputable inspectors, attend the inspection, and help interpret the results. If issues arise, the agent negotiates repairs or credits with the seller.
Managing Repairs: If repairs are needed, the agent can recommend reliable contractors and ensure that the work is completed satisfactorily before closing. This service is invaluable in preventing post-purchase problems for buyers.
DIYHomeBuyer.com’s Take: Having a network of trusted vendors can be really helpful here. But I think most of the time, buyer can find dependable vendors online via platforms like Thumbstack and Google.
Reducing Stress: Buying or selling a home can be an emotional and stressful experience. Real estate agents provide emotional support and guidance throughout the process. They keep clients informed, answer questions, and offer reassurance during challenging times.
Objective Perspective: An agent provides an objective perspective, helping clients make rational decisions based on facts rather than emotions. This balance is crucial, especially in high-stakes transactions.
DIYHomeBuyer.com’s Take: Buying a house is emotional, especially if this is your first time. I remember my agent tried their best to guide me through the stress, and me doing the same to my clients. That’s why for a long time, home buying has been largely unaffected by the rise of technology.
That’s why here at diyhomebuyer.com, we provide a comprehensive list of guides and resources to help you make the best decision at each step of the home buying process. And we offer consultation service for the time you need it most.
While it is possible to buy or sell a home without a real estate agent, the value they bring to the process is definitely client dependent. If you are an experienced home buyer, or have a strong preference to buy a home without an agent, be sure to fully utilize the resources here at diyhomebuyer.com to help you buy a home without an agent.
