How Do Real Estate Agents Help You Buy a Home? Explained
The home buying process can be confusing and filled with unfamiliar terms and tasks. A real estate agent will help you navigate the entire process and make it as stress-free as possible.
They will take your criteria and search the market for homes that meet them, including information on schools and neighborhoods.
They Know the Market
The real estate market is a dynamic and fluid one. Agents are constantly tracking changes, not just in the local area but at a state, city and even neighborhood level. The local economy, job growth, and population shifts impact the housing market. It is important for agents to be able to explain these nuances to their clients, as they are the ones who will ultimately be advising them on the best time to buy or sell. If you’re considering moving to the heart of Silicon Valley, homes for sale in san jose, ca offer a wide range of options to suit every lifestyle.
Agents will know how much comparable homes have sold for recently (known as comps), and they will be able to interpret the details of each listing, such as days on market and square footage. They will also be able to decipher the subtle language used in listing descriptions, such as “newer roof” meaning it was installed 10 years ago and “charming home” being code for “a little work needed”.
They’ll understand the demographics of buyers in the area, such as how many first-time buyers there are, or the percentage of families versus investors purchasing homes. They’ll also be familiar with the type of housing inventory, such as new construction, and how long it takes homes to sell once they are on the market.
When it comes to negotiating, an agent can act as the go-between for their client and the seller’s agent, conveying offers and counteroffers back and forth. They will also help their clients navigate the complex paperwork involved in a real estate transaction, ensuring inspections and appraisals are scheduled within the contractual deadlines, and shepherding the deal through to closing. Having a good relationship with your agent can be the difference between getting the house of your dreams and being disappointed.
They Know Your Budget
Real estate agents know how much homebuyers can afford, which helps them narrow down the list of potential properties. They also use this information to negotiate with sellers and help you with the financial aspects of buying a home, such as setting up mortgages and inspections.
According to Shelter Real Estate director Zali Reynolds, asking for your budget is one of the most important things an agent can do for you. It’s because it helps them “identify whether you’re serious and what your maximum purchase price is.” She says it’s helpful to provide a range rather than a number, as this will give an idea of the types of homes that you want to see and don’t want to see. But she adds that it’s important to have a little bit of stretch budget up your sleeve – that way, if you find something that is a little higher than your limit, you can still be in a position to negotiate.
Besides being familiar with local home prices, agents can offer unbiased opinions and advice to buyers. They may be able to point out hidden costs or issues that you might not have noticed while touring a property. This can save you money and time down the road.
However, it’s a good idea to keep in mind that not all agents are created equal. Some may be tempted to use sensitive information about your finances against you, such as if you’re planning on moving soon or if you are struggling financially. Unless you’re working with an exclusive buyer’s broker who has a fiduciary duty to you and never the seller, it is usually best not to disclose this information to a realtor.
They Know the Process
Real estate agents are familiar with all the steps involved in a home purchase. They will help you find homes that fit your lifestyle, provide expert guidance and insights into neighborhoods and schools, and guide you through the mortgage and financing process. Additionally, they know what to look for in a property—and what questions to ask the seller’s agent—to ensure you are getting a fair price.
In addition, they can recommend trusted third-party experts, such as home inspectors and insurance agents, and handle all of the paperwork involved in a real estate transaction. They are also experienced in negotiating, which is crucial for successfully buying a home. A good agent will be able to read between the lines when it comes to the sellers’ motivation and expectations, helping you make an offer that is both competitive and within your budget.
One of the most important things your real estate agent does is help you get preapproved for a mortgage. This can help you avoid unexpected delays down the road, as well as show sellers that you are a serious buyer. They will also help you negotiate contingencies if needed, such as an appraisal or inspection.
As you tour homes, your real estate agent will be paying attention to your body language and facial expressions to determine if the home is right for you. They will be able to give you an accurate picture of the home’s value by analyzing comparable properties that have recently sold in your neighborhood, or running a comparative market analysis (CMA). They can even point out issues you might miss if you tour the property alone, such as a leaky basement, moldy crawl space or outdated kitchen.
They Are Always Available
A real estate agent does not make money unless they have clients, so their daily duties revolve around cultivating a list of prospective homebuyers. This usually means answering phone calls, text messages, and emails at all hours of the day and night. They also have a constantly changing schedule because homes and properties come on and off the market at all times, meaning they must regularly update their clients with new options.
This constant communication and up-to-the-minute data allows agents to match homebuyers with the right property at the right time. In addition, agents can provide valuable local market knowledge such as whether schools are close by or if new construction is planned that could impact the neighborhood.
Real estate agents are also knowledgeable when it comes to negotiating a fair purchase price for their clients. They can help you avoid paying too much for a home and can often spot red flags that indicate a poor investment, such as hidden water damage or an unfinished basement.
Finally, real estate agents can recommend and coordinate the many professionals involved in the home buying process. This includes escrow, title company, home inspectors, insurance agents, and lenders. They can also help ensure that all parties involved in the transaction understand their roles and responsibilities, and they can communicate with each other to keep the homebuying process on track.
Hiring a real estate agent is one of the most important decisions you will make during the homebuying process. By choosing an experienced, professional real estate agent, you can navigate the complicated and emotional home search and purchase process with peace of mind. This way, you can rest assured that you will get the best possible value for your home purchase.
They Are There for You
Buying a home is an exciting, but sometimes complicated process. Real estate agents are there to make the entire experience as seamless as possible for their clients. They will help you find the right home, negotiate with the seller and their agent to get you a great deal, and walk you through the closing process.
Agents know the market in their area, including property values and school districts. They also have a strong network and are often able to inform their clients of properties not on the MLS. They can also recommend home inspectors and other service providers for a smooth, stress-free transaction.
When you meet with a potential agent, be sure to tell them what your preferences are. For example, do you want to communicate through text messages or would you prefer to speak over the phone? Do you work nonstandard hours and need an agent who is willing to show homes during the morning or evening? The agent you choose should be comfortable working on your terms.
Buyer’s agents will take the time to understand your wants and needs, and use this information to find you a home that fits you perfectly. They can even suggest neighborhoods that you might not have considered, based on their knowledge of the neighborhood, current market breadth, and perhaps something about the seller’s motivations.
If you’re a first-time buyer, a real estate agent can help you navigate processes that might be unfamiliar to you, such as co-op board approvals and condo bylaws. In addition, they can advise you on zoning regulations and other regulatory issues that might impact your purchase. Their expertise can save you a lot of headaches and frustration down the road.
