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Do I Need a Real Estate Agent To Buy A House

Do I Need a Real Estate Agent To Buy A House


– Have you ever looked at a
real estate agent and said, hey, that looks easy, I could do that. Well, in this video,
we’re gonna talk to you about the pros and cons
of working with a realtor and if it’s the right choice
for you and your family. There are many steps and decisions to make when you’re buying your first home, and one of them will be, should I use an agent to
buy or sell my own home? There are hundreds of people
who sell their own homes, they sell their own properties themselves or they’ll represent
themselves when they’re buying a property, whether it’s a
primary house or an investment. And what’s the main reason? They wanna save money! Duh! But saving money is great. Who doesn’t like saving a few bucks? But on the other hand, you’re
entering into a contract to make one of the biggest
purchases of your life. Do you have the experience to
facilitate this transaction? If you’re an attorney,
it may be pretty easy. You’re dealing with
contracts all day long. Okay, so might not be a big deal for you. Or if you’re an experienced
real estate investor and you’ve bought and sold many homes. Again, might not be a big deal. You’ve done this plenty of times. You know what to look for. But I recently got a call
from one of my friends who’s an investor and he flips houses. His name is, Pedro, and
he had a friend, Janet, in his circle that needed help. So I called Janet and
what I found out was, Janet had signed a contract to
buy a house from an investor. The investor said, “You
don’t need a realtor.” She signed the contract and
wired $20,000 escrow right away. A few days later, she
gets a call from her bank and they said, “Hey,
we’re denying your loan. “You don’t qualify.” She couldn’t get a loan and needed to cancel
and get her money back. But after reading the contract
that Janet had signed, she agreed to buy the house
without any contingencies, which means she can’t cancel. Every buyer’s worst nightmare. Losing your security deposit. 20 grand, I don’t care who you
are, that’s a lot of money. Luckily, after Janet consulted with me and I consulted with an attorney, we found out that the
seller didn’t give her the correct disclosures,
making the agreement void. Janet got extremely lucky. She could’ve easily lost 20 grand by not working with a realtor. So, if you’re not an attorney and you have limited experience buying or selling real estate, it’s probably best to contact
an experienced realtor. An analogy I like to use is
if I was accused of a crime, to represent myself in court, I wouldn’t know the first
thing to do to defend myself in a court preceding. So it wouldn’t turn out good for me. Even if I knew a little bit,
probably wouldn’t know enough and I’d probably end up in jail. If you’re a real estate investor, put investor in the
comments section below. If you’re a first-time home buyer, type first time in the
comments section below. I’d really like to know how
many people are watching this video are investors or first time. So, here are a few pros and cons when selling your house without a realtor. One of the pros is you
save 2.5% on commission. One of the cons is that you’re
gonna have limited marketing because you can’t access
the MLS as an individual. The MLS stands for
Multiple Listing Service, and it’s the search engine realtors use when looking for houses
for sale for their clients. Also, when your realtor
lists your home on the MLS, it automatically pops
up on Redfin, Zillow, and a bunch of other websites,
and you get tons of exposure. These are not options
if you sell on your own. Okay, you can put a house for
sale up in your front yard, you can put a sign up,
you can share flyers, you can post on Craigslist,
and maybe one or two sites, but your reach is gonna be limited. In addition to the lack of
marketing of the property, you have to compare
offers when they come in. Not all offers are created equal, and you have to know
what you’re looking for when you decide between multiple offers. Most contracts are gonna come with different conditions,
different terms. One buyer might be putting 20% down, one buyer might be putting 10. An experienced realtor will
help you sift through the offers and point out the important
details that you might miss if you’re not familiar with this process. So, here are some of the pros and cons when representing yourself
when you decide to buy. One of the downsides is you
have no access to the MLS, so it’s gonna be a little bit harder to search for homes for sale. You can search on Redfin and Zillow, and you can have someone maybe from Redfin show you properties. But putting a contract
together is gonna be hard. You have to understand contingencies, understand how you can
get your deposit back so you don’t end up like Janet. When can you cancel? How long are you locked in? Purchase contracts are 10
pages with a lot of fine print and you want to make sure you’re
fully protecting yourself. Another downside of not
working with a realtor is you may not have access
to reliable inspectors, loan officers, plumbers, electricians, and usually you only have, like, 10 days to complete
all your inspections. So if you have a connected agent, he’s gonna have everyone lined up. Inspectors, roofers,
plumbers, electricians, and he’s gonna get the
reports to you quickly. You’re gonna be running around, on top of working on your
loan, you’re gonna have to find all these people to get inspections done. Okay? So what’s the benefit
of not using an agent when you’re buying? There’s not much. The seller pays your agent’s commission. So you don’t even have to pay for that. So the answer is, yes, you can buy a house or sell a house without
a real estate agent. Is it a good idea? If you’re a lawyer, you’re
an experienced investor, you may be okay, and not get
yourself into too much trouble. But if you’re not a lawyer, you’re not an experienced investor, it’s best to have a trusted realtor who can guide you step by step throughout the whole process, and show you what to look for
when you’re looking at offers, and when you’re putting in your own offer. So if you guys liked this video, guys, please smash up that like button. If you think it was terrible,
hit the dislike button. And if you haven’t already done so, hit the subscribe button, hit the bell so can be
notified of our next video. And we’re gonna be coming out with videos every other week. Also you can follow me on Instagram, on my Instagram stories
@rogermortgageexpert as I’m gonna be bringing
knowledge and tips for first-time home buyers. I post about interest rates every day, and everything real estate
and mortgage related. And also, if you want to
download our free ebook for millennials, it’s a guide
to buying your first home. And I include 38 hacks and secrets that your other realtors may not tell you. And I’ve included the link
in the description below. Fell free to grab that. So, happy home shopping and
I’ll see you guys next time.

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