Making the decision to buy your first home instead of renting is one of the most important financial steps you can take in life, and it’s a great decision for many reasons, but it can also be pretty scary.
One of those scary factors to many may be working with a Realtor for the very first time, simply because they are not aware of the roles of Realtors.
There are two very distinct Realtor roles in any home purchase: The Listing Agent and the Buyer’s Agent. The Listing Agent is the Realtor that works for the Seller, listing the home for sale on the market. A Buyer’s Agent works for the buyer (you), to help you find the perfect home within your budget, negotiating the deal with YOUR best interests at heart.
Is it expensive? Before becoming a Realtor or buying my first house, I too thought that I would have to put down some sort of a retainer fee and/or pay thousands of dollars after closing for the services of a Realtor to help me find a house.
But guess what. . . great news: Buyers do not pay out-of-pocket for a Realtor’s services! Let me repeat that: Buyers do not pay! Sellers pay the commissions of both their listing agent and the buyers’ agent from the proceeds at settlement.
OK, I guess you could say that the buyer does technically pay since the “proceeds at settlement” means the buyer’s payment for the house, but the point is that as a buyer in most major markets within the U.S., you shouldn’t be asked to pay upfront out-of-pocket, write a check, or pay additional fees at closing to have a Realtor represent you.
So why do you need a Realtor to represent you? Just think of it this way: For absolutely zero payment out-of-pocket, you are getting an expert professional as your advocate whose fiduciary responsibility is to look after your best interest, help you search specifically for your dream home through access to the Multiple Listing Service that shows every home that is actively listed, arrange and schedule private showings of those homes, negotiate with the sellers and their listing agent to get the best deal for you, coordinate and collaborate with your mortgage lender to ensure your new home complies with your loan requirements, make sure all of the paperwork and contracts are filled out properly, on time, and fully in compliance with state and local laws, and at the end of the day, make sure everything goes smoothly and seamlessly with the entire process of purchasing your first home so that you are a happy new homeowner!
With all of that (especially with no payment out of pocket), why would you NOT want a Realtor to represent you during such a complex and important process as buying your first house?