Buying a home involves a lot of moving parts: searching, touring, negotiating, inspecting and coordinating with your lender and title company. You are allowed to handle all of it yourself, since no state requires buyers to hire an agent. But many buyers find that having a professional in their corner makes the process smoother and less stressful. Here is what to consider as you decide.
These terms often get used interchangeably, but they mean slightly different things:
Whichever title they hold, what matters most is their experience, local knowledge and how well they work with you.
An experienced agent knows which neighborhoods fit your budget and lifestyle, how quickly homes are selling and what similar homes have sold for. That insight helps you avoid overpaying and spot good opportunities.
Purchase contracts contain deadlines, contingencies and legal language that can be easy to misunderstand. Your agent helps you write an offer that protects you, including terms for inspection, appraisal and financing.
Price is only one item on the table. Agents also negotiate repairs, seller credits, closing dates and what stays with the house. Having someone who does this regularly can help you get better terms without letting emotions take over.
Your agent helps schedule inspections, keeps the transaction on track, and works with your lender to make sure documents and deadlines line up. They can also refer you to inspectors, insurance agents and contractors they trust.
Agents are typically paid a commission when the sale closes, often a percentage of the purchase price. How buyer’s agents are paid can vary. In some transactions the seller offers to cover it, and in others the buyer pays some or all of it. You will usually sign a written agreement with your agent before touring homes that spells out their services and compensation, so read it carefully and ask questions. Commissions are negotiable.
If you are concerned about cash, ask your loan officer how agent compensation may fit into your closing costs and whether seller concessions could help.
Personal referrals are one of the best places to start. Coworkers, neighbors, friends and family who bought recently can tell you what it was really like to work with their agent. You can also:
Experienced buyers, people purchasing from a relative, or those who are comfortable with contracts sometimes skip the agent. If you go that route, consider hiring a real estate attorney to review documents. For most first-time buyers, though, the guidance of a good agent is worth it. Our first-time home buyer page covers more of what to expect.
Whether or not you hire an agent, getting preapproved before you shop shows sellers you are serious and tells you what price range to target. You can also compare loan programs to see which might fit your goals.
FLO Mortgage works alongside local agents every day and is happy to help you get ready. Connect with one of our loan officers to start your preapproval.
A FLO Mortgage loan officer can walk through your options, run real numbers and help you choose a loan that fits.
This article is for general education and is not a commitment to lend. All loans are subject to credit approval, underwriting guidelines and program availability. FLO Mortgage, Company NMLS #1835856. Equal Housing Opportunity.
© FLO Mortgage, LLC. All rights reserved. Company NMLS #1835856.