Real estate agents are salespeople who specialize in helping clients sell and buy residential and commercial real estate. They may also specialize in manufactured homes or vacant land.
Real estate agents are paid by commission. The seller and the listing agent sign an agreement that details the percentage of the sale price that will go to the agent. The average commission is 5% to 6% of the final sale price, according to Investopedia, and it’s used to pay the agent for their time. But, what about the agent who helped the buyer? They get half of that commission for their own time.
For example, if a house sells for $300,000 and the commission is 5%, then the agents representing the buyer and the seller will each get $7,500 after the property is closed on.
Risks of buying a house without a Realtor
There are benefits to having a real estate agent on your side, even if you’ve bought and sold property before.
Access to listings
Sure, there are plenty of websites that you can scroll through all day looking at houses that catch your eye, but real estate agents have access to the MLS (Multiple Listing Service). This means that not only can they see homes that are for sale or pending, but also off-market listings, or “pocket listings.” Some sellers don’t list their homes due to privacy concerns, market testing, or to avoid disrupting renters in the property.
Your perfect home may be out there, and you don’t even know it.
Knowledgeable
As a real estate agent, the paperwork, home inspections, appraisals, and negotiations are a part of their job. They can help you understand complicated real estate terminology and guide you in negotiating the best price for the house you’re interested in. You may also not be aware of the different loans available to you.
If you ever get stuck, your real estate agent is a call, text, or email away with an answer. After all, that’s their job!
Familiarity with the market
Local real estate agents live and work in the communities where you want to buy a property. They’re familiar with the neighborhoods, schools, parks, houses of worship, shopping, and more. They’ll also know comparable home sales and can help you choose the right asking price. Use all this insider knowledge to your advantage.
Saving time
Going through endless listings, scheduling showings, deciphering confusing paperwork — why do all that when a real estate agent can do it for you?
When to consider buying a house without a Realtor
There are exceptions to the rule. Forbes highlights situations where it may be acceptable to buy a property without using a Realtor:
- If you’re related to the seller and the terms of the sale are clear cut.
- You’re familiar with the area where you will be purchasing a property.
- You’re uncomfortable with working with a buyer’s agent, and you feel good being matched against the seller’s agent.
- The contract requires the buyer to pay the buyer’s agent’s commission. This is very rare, though.
- If you’re buying a brand-new home and it makes more sense to work directly with the builder.
Working with home-buying companies
When you’re selling a house, especially one that’s not in great condition, it can be intimidating to leave things up to the market. Plus, you’ll have to give a percentage of your house sale money to your Realtor for commission.
Skip all that and work with a homebuying company like Meridian Trust. We have more than 15 years of experience purchasing all kinds of properties in a range of conditions. This includes houses, townhomes, condos, apartments, multi-family units, manufactured homes, and even vacant land.
No matter what issues arise, Meridian Trust handles it with their network of transaction coordinators, attorneys, and even an in-house title company. Our team of experts can help resolve issues with permits, liens, or violations — and we’ll even cover the closing costs for you.
To get started or learn more, call us at (855) 996-9153.
Note: This guide is for informational purposes only. Meridian Trust does not make any guarantees about the sufficiency of the content in or linked to from this blog post or that it is compliant with current law. The content within this blog post is not a substitute for legal advice or legal services. You should not rely on this information for any purpose without consulting a licensed lawyer in your area.
