This article covers reasons why hiring realtor on home purchase is important. Getting hooked up with the right real estate agent is one of the most important factors in the home buying process. Most homebuyers need a real estate agent who not only is knowledgeable but is also familiar with the area and its pros and cons. Buyers should be doing due diligence on your realtor. Alex Carlucci, a senior loan originator at Gustan Cho Associates and an associate contributing editor at GCA Forums says the following:
Your realtor should extensively research homes that you have an interest in which should include comparable sales, school districts, proximity to shopping centers, property values, crime rates, and other amenities nearby.
More importantly, the realtor you choose should be available to you 7 days a week. In this article, we will discuss and cover the reasons why hiring realtor on home purchase Is important. Commissions on a real estate agent are normally 6% of the sales price. Average home sales in the U.S. are $400,000 so 6% of $400,000 comes out to $24,000 in commissions the home seller needs to pay. Realtor commissions are paid for by home sellers and not buyers. In the following paragraphs, we will cover the reasons why hiring realtor on home purchase is important.
Hiring a Realtor When Purchasing a Home
For most people, buying a home is the largest financial commitment they will ever make. Many buyers wonder if they should hire a Realtor when buying a home. The answer is yes—working with a Realtor is helpful. They make your search easier, help you make stronger offers, avoid mistakes, stay on schedule, and negotiate effectively. Buyers must learn and act quickly about financing and the actual costs involved in order to make informed decisions.
The Consumer Financial Protection Bureau (CFPB) guidance for consumers notes that consumers should compare loan offers, assess and negotiate closing costs, and consider home financing.
HUD homeownership counseling materials highlight the importance of support when selecting an agent, making an offer, and preparing for inspections and closings (see the HUD homeownership counseling materials). Realtors do not take the place of lenders, attorneys, appraisers, or home inspectors. Instead, they work with these professionals to make the buying process smoother. Since buying a home can be complicated, having a Realtor can give you peace of mind.
Why Hiring A Realtor On A Home Purchase Is Important
Even though buyers can research the home-buying process online, many do not realize how important Realtors are or what they bring to the table. Buyers may not fully understand local prices, contract details, how buyers and sellers act, inspection strategies, appraisal risks, or negotiations can go through the entire home-buying process without a realtor.
According to the National Association of Realtors, 88% of home buyers purchase their home with a realtor. The buyer’s primary reason for wanting a realtor is to assist with negotiations and to find the home that best fits the buyer’s needs.
A more complete reason a realtor is needed for a home purchase is that the home search is only the beginning. Once you find a house, a new set of evaluative processes and even more work is involved. Preparing a competitive offer, implementing the right contingencies, and ensuring you do not miss a deadline are important. Coordination of inspections, responses to issues, and ensuring the process is not delayed after the closing date are also extremely important.
Negotiating Price, Repairs, And Seller Credits
Home sellers feel that paying a 6% commission is way too much. Many homeowners feel that whatever a realtor can do, they feel they can do it themselves.
Learn the top reasons why hiring a Realtor on a home purchase is important, from pricing guidance and negotiations to inspections, contracts, and closing support.
This can be true to some and many homeowners do a great job in marketing their own homes themselves. Trying to sell the home yourself might be a great idea during a seller’s market, where demand exceeds supply. However, there are many advantages and benefits in hiring a realtor to list home. In this article, we will cover and discuss the topic of the benefits of hiring a real estate agent.
What A Realtor Does For Home Buyers
A Realtor helps with every major step of buying a home. From planning and searching to making an offer, negotiating, and closing, they guide you through the whole process.
Knowledge Of Prevailing Local Market Conditions
Your Realtor will share local market insights for your chosen neighborhoods, like recent sale prices, how long homes stay on the market, the level of competition, seller expectations, and trends you won’t find on listing sites.
Knowing the local market helps you make a smart offer. It’s not just about price, but about being realistic based on recent sales, current conditions, and any risks. Without this knowledge, you might miss out on homes or pay too much.
Realtors also give you access to listings, including some that aren’t yet on the market. A Realtor can also facilitate the search and assessment of homes for buyers. As stated in the Fannie Mae homebuyer guides, agents can assist buyers in finding and assessing homes, and there is encouragement for buyers to contact multiple agents before making a selection. A Realtor helps you find new listings fast, choose homes that fit your budget, and avoid properties that might cause problems due to their condition, price, or contract terms.
Guidance On Home Values And Comparable Sales
One of the main reasons to hire a Realtor is their advice on home pricing. A home may look great online, but that doesn’t always mean it’s priced fairly. A Realtor considers similar sales, current competition, market trends, location, and potential updates. This helps you avoid making emotional decisions based on photos or the seller’s price.
How a Realtor Saves You Time Finding the Right Home
A good Realtor helps you focus on homes that fit your needs, so you spend time on the right options instead of looking at homes that aren’t a good match. Dale Elenteny, a senior mortgage loan officer at Gustan Cho Associates says the following:
Most buyers start with a long wish list, but soon realize that things like monthly payments, commute, condition, schools, insurance, taxes, and resale value are just as important as size or finishes.
A Realtor helps turn your preferences into a clear plan that aligns with your finances and comfort level. This matters because some homes may look affordable at first, but become harder to buy once you factor in repairs, taxes, HOA fees, or the seller’s terms.
Filtering Out Poor Choices And Saving Time
A Realtor can spot problems early, saving you time and money on inspections, appraisals, or extra showings. For example, a home might be overpriced, have financing issues, or not fit your timeline. This kind of filtering helps buyers save both time and money.
Benefits of Hiring Realtor on Home Purchase
Don’t Buy a Home Alone—Get a Pro on Your Side
From writing offers to negotiating repairs, a good Realtor can save you time, stress, and money.Why A Realtor Is Essential When It Comes To Offers And Negotiating
Realtors are skilled in negotiations and can help their clients with their best interests during price negotiations on the home, contract terms, and other aspects of the home-buying process. Their expertise can help you secure the best possible deal.
Realtors have access to Multiple Listing Services (MLS). The MLS provides comprehensive listings of available homes for sale. They can save you time by identifying properties that meet your criteria and arranging viewings.
Purchasing a home involves many legal documents and processes. Realtors are familiar with these complexities and can guide you through the paperwork, ensuring that all legal requirements are met and protecting your interests.
Benefits Of Hiring A Realtor Is Knowledge And Experience
One of the best benefits of hiring a realtor is that they are somewhat of busybodies. They snoop around and know what comes up in the hot sheet every day. They know what is on the market. Real estate agents know what homes are under contract.
Real estate agents know what homes sold. Realtors are information hounds and stay on top of the market. They know what homes are listed off the market.
For example, if a home that listed for $300,000 recently closed for $265,000 and this is a comparable home to the subject property, the realtor will find out how long it was on the market. Realtors know what types of recent improvement the home had the type of marketing the listing realtor used.
Importance Of Communication And Experience
Real Estate Agents are quarterbacks who coordinate real estate transaction goes smoothly. This is done by keeping in touch with the mortgage broker/banker, seller’s agent, and attorneys until the day of closing. For example, my son Timothy Cho, who is in the military, just completed his military training and is on the reserves, and will be residing in Illinois. Timothy is a first-time homebuyer. I referred Timothy to one of my real estate agent partners without hesitation. I am currently working on trying to get Timothy qualified for a mortgage loan. Once he is pre-approved for a certain amount, I will give Tim and the realtor heads up to go shopping.
Expertise And Guidance Hiring A Real Estate Agent On Home Purchase
Buying a home can be complex, with many legal and financial considerations. Realtors have the expertise to guide you through each process step, from making an offer to closing the deal. Re can answer your questions, provide advice, and help you avoid common pitfalls. By working with a realtor, you can know that you have an experienced professional guiding you through home-buying. Real estate agents are dedicated to helping you find the right home and ensuring your interests are protected at every step.
Realtors have a wide network and work closely with other professionals involved in the home-buying process, such as lenders, inspectors, and attorneys.
They can recommend trusted professionals and coordinate their services to ensure a smooth transaction. Realtor Buying a home involves a lot of paperwork, including contracts, disclosures, and legal documents. Realtors can help you navigate this paperwork, ensuring everything is completed accurately and on time. When buying a home, hiring a realtor can provide valuable expertise and support to help you make the best decisions for your needs and preferences.
Professional Networks
Realtors have established networks of professionals in related industries, including lenders, home inspectors, contractors, and lawyers. They can recommend trusted professionals to assist you with various aspects of the home-buying process.
Realtors can provide valuable insights into future developments in the area, such as zoning changes, infrastructure projects, and school district updates, which may impact your decision to purchase a particular property.
Purchasing a home can be an emotional process. Realtors can offer support and guidance, reassurance, and perspective during stressful moments. Realtors are experienced in managing the home buying process efficiently. They can coordinate communication between all parties involved, including sellers, lenders, inspectors, and attorneys, to ensure a smooth transaction from start to finish.
Post-Purchase Assistance
Even after the purchase is complete, realtors can continue to provide assistance and support. Whether you have questions about homeownership or need recommendations for local services, your realtor can be a valuable resource. Hiring a realtor can save you time, money, and stress while ensuring that your home purchase is successful and satisfying.
The Importance of a Realtor in the Dealing and Negotiating Stage
Once a deal is struck, buyers often see how drawn-out and complicated the process can become. HUD homebuyer counseling materials note that when buyers identify a home of interest, the real estate agent or broker assists in preparing the offer. Apart from price, purchase offers consider other details such as earnest money, inspection timeframes, financing contingencies, appraisal contingencies, timing of occupancy, seller concessions, repair requests, and strategic closing dates.
Price, Repair, and Seller Credit Negotiations
The CFPB states that buyers can negotiate some closing costs and mortgage terms. Seller credits for closing costs can sometimes be negotiated, but they can impact the price. (Consumer Financial Protection Bureau) A realtor can help you identify what can be negotiated and how to present those requests to keep the deal together. This can include:
- The strategy for the offer price
- requests for repairs discovered during inspections
- Closing costs covered by the seller
- flexibility on the timeline
- contract protections when there are financing or appraisal-related issues
Managing Contingencies, Timelines, and Paperwork
Realtors keep track of important deadlines and communicate with your lender, attorney, title company, and inspector to make sure nothing is missed. The contract for the sale and purchase of real estate contains important deadlines and conditions. Some of those conditions may affect the protection of your deposit and your ability to terminate the contract. Financial consequences can be very real when a deadline is missed or a misunderstanding arises regarding the contract’s conditions (contingencies).
The Role of Realtors in Inspections and Due Diligence Protection
A key way a Realtor helps is by reducing the risks associated with buying a home. A Realtor cannot replace or be mistaken for a home inspector. A Realtor, however, can assist buyers with developing a foundation for a more complete answer to the question of how home inspections work. How do buyers deal with the results of home inspections? What, if any, home inspection issues are cause for concern or go to the trigger, negotiate, terminate steps to the home purchase process?
Choosing Hiring Realtor on Home Purchase
The team at Gustan Cho Associates is extremely cautious when we refer to anyone. I never refer anyone with who I have not had a prior business relationship with. For every single home buyer, I introduce real estate agents with who I have worked before. I do have close friends of mine who are real estate agents. Some of these realtor friends I have known for many years. They are all professionals and qualified real estate agents.
A real estate agent should be personable, knowledgeable, and go beyond and above the call of duty. It is very important for home buyers and home sellers to get along with realtors.
Before you hire the first realtor you run into, interview several real estate agents. Find out whether or not you get along with them. See how long it takes for you to get a hold of them. See how timely they return your texts, emails, and calls. Make sure they are knowledgeable in the area you are interested in buying or selling. How long have they been in the business? Check out their online reviews.
Detecting Homeowner Issues
Good Realtors sniff out issues in the property disclosures or the property showings that warrant a more in-depth review: age of the roof,
- Water issues,
- Foundation issues,
- Permits.
- Issues related to the neighborhood,
- Omissions in seller disclosures.
- Not every issue in a seller’s disclosure will end a deal, but it might mean you should take more time to think before moving forward.
Guide The Homebuying Process
The homebuyer education materials from Fannie Mae encourage homebuyers to understand appraisals, estimates, and closing documents as part of their education on the process, and the CFPB warns that buyers should review their closing documents for potential scams. A Realtor keeps you and all the details organized and on track until closing.
How Realtors Save Clients From Costly Mistakes
Inexperienced home buyers make similar mistakes. They end up:
- Paying too much for the home.
- Waiving contract protections too easily.
- Not understanding the condition of the home.
- Not understanding the closing costs.
- Missing important timelines.
- Trusting the seller’s agent too much for direction.
- When you buy a home, the seller’s agent works for the seller.
- That’s why many buyers want their own Realtor, so they don’t have to rely on the other side for advice.
Managing Emotion
- It’s easy for buyers to fall in love with features like a great kitchen, a yard, or a good school district and rush into a decision.
- A Realtor helps you focus on what’s most important and avoid making choices based on emotion.
Transaction Stress
Even if you find the perfect home, a poorly managed transaction can be stressful. There are many details to handle, such as scheduling inspections, working with your lender, appraisals, title work, walk-throughs, and closing. A Realtor helps keep everything organized.
Is Hiring a Realtor Worth It for First-Time Home Buyers?
Most of the time, the greatest advantages for first-time home buyers are working with a Realtor to access financing, understanding how contract terms interlace, and considering questions before making a commitment. Buyers can save time and money by working with a good Realtor, according to Fannie Mae.
Keeping First-Time Buyers Organized
There is no prior knowledge for a first-time buyer regarding the
- Pre-approval requests,
- Comparison and selection of loan estimates,
- Review of important disclosures,
- Scheduling of home inspections,
- Shopping for homeowner’s insurance, or
- Preparation of funds for closing.
An experienced Realtor can provide structure to what will otherwise be a very chaotic process. An experienced Realtor brings order to the process and explains every part that could affect your decision.
Issues That Arise From Buying a House Without a Realtor
Some buyers try to save money by not using a Realtor, but this can lead to problems that go unaddressed.
Buyers Without Realtors Might Struggle With:
- Assessing what the fair market value is
- How to format an offer that’s competitive but also protective
- How to negotiate inspection-related items
- Understanding what the local customs are
- Keeping track of the timelines of all the contracts
- Spotting issues early
- If something feels off, pushing back
Not every home purchase without a Realtor fails, but the risk of mistakes is higher, especially if you’re not familiar with contracts, negotiations, and due diligence.
Finding The Best Realtor To Work With For Your Home Purchase
Not all Realtors are the same. It’s important to find the right one for you, not just any agent.
Considerations For Selecting A Realtor
Consider The Following Practical Questions:
- What is your familiarity with the neighborhoods that I am considering?
- What strategies do you utilize to help buyers win in this market?
- What is your method of communication when you are in the midst of negotiations?
- What problems do you see buyers fail to address?
- How do you assist your clients in the inspection and closing process?
The Importance Of Communication And Experience
A good Realtor is responsive, clear, honest, and explains things well. You want someone who lays out your options, not someone who pushes you to make a quick decision. A good Realtor for your purchase understands your price point, the local market, financing realities, and the big picture.
Wrapping Up What it Means to Hire a Realtor on a Home Purchase
There are many reasons to hire a Realtor when buying a home. They teach you about the market, help you narrow your search, write strong offers, negotiate well, keep you on schedule, and help manage risks.
Assistance like this is particularly beneficial to buyers, especially first-time homebuyers, because it helps them understand the process more comprehensively and, hopefully, makes it less difficult.
Most consumers still depend on representation, and numerous market and consumer studies highlight the numerous areas where a buyer’s advocate is needed. Hiring the right Realtor gives you a real advantage. It helps you buy the right home with a clear plan, more confidence, and fewer surprises. Realtors help with your home search, offer advice on local prices, write offers, negotiate terms, handle contracts, and coordinate closing details. They help you avoid costly mistakes and make better decisions.
Home Sellers
A very close friend of mine from Round Lake Beach, Illinois has over 70 residential properties and wants to sell a few of them. His daughter is even a realtor. He has not been having too much luck with a realtor who is aggressive, returns his calls in a timely period, and works evenings and weekends. He asked me for a referral since I have a lot of business relationships with a lot of realtors. Without hesitation, I referred him to one of my realtor agent partners. My friend listed, 3 of his 70 properties initially and he just called me a few days ago to thank me. The 3 homes are not sold yet. But my friend was extremely impressed with the activity that the realtor, I referred to him has brought to the table in just 4 short weeks. If you are interested in buying or selling a home in Northern Illinois or the Chicagoland area, please contact us at Gustan Cho Associates at 1-800-900-8569 or text for a faster response. Or email us at gcho@gustancho.com.
Avoid Costly Mistakes by Working With a Realtor
Contact Gustan Cho Associates and we’ll help you pair a strong mortgage pre-approval with a top-notch Realtor to protect your interestsBenefits of Hiring a Realtor When Selling Your Home
A professional realtor represents buyers and sellers for a living. Hiring realtors will have the listed property on the MLS. Realtors can advise homeowners on how to price home. They have the tools to do a full-blown marketing campaign. Remember that realtor does not get paid a dime until they close home. They will do everything possible to sell a home to a qualified buyer.
The real estate agent will network with other realtors and will most likely organize and schedule open houses periodically. They will also spend money on newspaper ads, mass mailers, and other forms of marketing.
The real estate agent will only show the property to qualified buyers armed with a strong pre-approval letter from a lender. Homebuyers or homeowners who need to qualify for a mortgage with a national direct lender with no overlays on government and/or conventional loans can contact us at Gustan Cho Associates at 800-900-8569 or text us for faster response. Or email us at gcho@gustancho.com. We are available 7 days a week, evenings, weekends, and holidays.
Frequently Asked Questions On Reasons To Hire A Real Estate Agent On Home Purchase
Is It Better To Buy A Home With A Realtor?
In general, yes. Buying with a Realtor usually provides better representation, local market knowledge, and transactional assistance than buying without one. This support is particularly useful for first-time buyers and buyers in a competitive market.
What Does A Realtor Do For A Buyer?
A Realtor assists a buyer with finding homes, evaluating home values, coordinating showings, writing purchase offers, negotiating contract terms, explaining contingencies, coordinating inspections, and keeping everyone on track to close.
Can A Realtor Help Negotiate Closing Costs?
Yes, Relators negotiate on behalf of buyers for seller credits to fulfill repairs and for other contract terms. The CFPB also states that buyers can negotiate some mortgage-related costs and should check and compare other loans for more favorable terms.
Is It Worth It To Hire A Realtor For A First-Time Home Buyer?
Yes. Usually, first-time buyers benefit from having someone to explain the steps and processes, order steps, early identify issues, and to give assistance to the buyers with the offer through to the closing.
How Do I Pick A Realtor When Buying A Home?
Look for a Realtor who communicates effectively, understands the Local Market, Has Experience, On The Buyer’s Side, And Has System To Help Her Clients For Each Part Of The Process e.g showings, negotiations, inspections, and closing.
