Myth 2: An Agent is the Best Way to Price Your Home.
Myth 4: Agents make the Home Showing Process Simple.
Myth 5: The For Sale By Owner Closing Process is Difficult.
It's FREE to use an Agent when Buying a Home.
Prior to the Internet, buyers had to work through a real estate agent simply because it was the only way to learn about the available homes for sale on the market. Today, listings are posted online and nearly all home searches begin on the web. Buyers browse the available homes for sale on their own by entering the location and home criteria that matches their needs. Real estate agents have become an unnecessary middleman in the process of finding homes.
Many home buyers still resort to using an agent simply because there’s no direct cost of using a buyer side agent. There are, however, indirect costs that aren’t openly discussed and certainly not understood by home buyers. In a nutshell, the buyer side agent needs to get paid by someone for the effort he or she put forth. The payment comes from the seller. On a $150,000 home, a 6% Realtor commission is $9,000.00. On a $300,000 home, a 6% Realtor Commission is $18,000.00. Do you think the seller would be more willing to work with a buyer on the asking price if he could avoid $18,000 in commissions? The simple answer is yes. The buyer could potentially save thousands of dollars by foregoing the services of a buyer side agent.
So where else can a buyer get the guidance to feel comfortable with the home buying transaction? FSBO Homes Iowa can refer buyers to a real estate attorney that will review the purchase contract for a small fee of around a hundred bucks. If using conventional financing, the buyer is also protected from the home inspection and appraisal required by the buyer’s lending institution. A professional home inspector assures there aren’t hidden issues with the property and a certified appraiser will verify that the buyer is paying an appropriate price. If the home doesn’t measure up, then the purchase offer can be voided.
Buyers also need to understand that in today’s world of real estate, the buyer is in charge. Real estate agents typically will not show “for sale by owner” homes simply because there may not be a commission involved. With a growing number of non-MLS homes on the market, there’s a high likelihood that home buyers will miss great opportunities if they’re relying on an agent to find their home.
