Should You Use A REALTOR® To Buy A Home?

Dated: July 20 2020

Views: 106

According to the National Associationof Realtors (NAR), “A Realtor® is a licensed real estate salesperson who belongs to the National Association of Realtors®, the largest trade group in the country. Every real estate agent is not a Realtor®, but most are. If you're unsure, you can ask your agent if they're a licensed Realtor®. Realtors® are held to a higher ethical standard than licensed agents and must adhere to a Code of Ethics.”

Plainly put, a Realtor® is an experienced and educated professional who will work on your behalf and advocate for your interests. Most sellers have armed themselves with at least one of these licensed professionals so as a result, buyers will be at a distinct disadvantage with negotiations and will not have assistance deciphering the complex lingo in contracts unless they hire a lawyer (which is more expensive than a Realtor® for a buyer but we will talk about that later). Here’s what you should consider if you are considering purchasing a home yourself without a Realtor:

  • You will not have access to the Multiple Listing Service (MLS) for your property search. The MLS is a centralized database of all available real estate in s specific area and is only accessible to licensed real estate professionals.

    • Other sites (Zillow, Trulia, etc.) can give you a sampling of what’s available, and some comparable properties but you’ll have to research whether asking prices are justified based on comparable home sales in the area on your own.

    • If you are in a “hot” real estate market where homes sell in less than 48 hrs. you will be at an immense disadvantage as most the buyers (83% on average in the U.S) do use a real estate agent and will be made aware of new homes listed on the market immediately after they are posted. Meanwhile you will have to wait for your publicly accessible site to update with the information which can take up to 48 hrs.

  • In addition to that, here’s what you’ll have to do yourself if you buy a house without a Realtor:

    • Dig up facts on a neighborhood, including ones that a seller might not disclose that could be important to you.

    • Negotiate an offer, including the price and other clauses and contingencies in the purchase agreement.

    • Navigate the home inspection, and negotiate repairs or credits with the seller.

    • Decipher paperwork that could be filled with complex jargon and terms you don’t understand.

  • Request and review seller disclosures. You might not know what to ask for or what sellers in your state are required to disclose.

One more thing to consider is the cost of using a Realtor® as a buyer. Traditionally, the seller will pay the commissions of BOTH the buyer’s and seller’s Realtor®. This is not the case with every transaction, and it does depend on your negotiations with your seller and Realtor® but in the majority of cases the cost of the buyer’s Realtor® is covered by the sellers! 

If you, a friend of yours or a family member are considering a real estate purchase or sale please share this with them and feel free to reach out to me with any questions! You can also comment below!

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Jose Rey

Realtor, Jose Rey, feels blessed to call the Charleston-area home; so much so that he is dedicating his career to helping others do the same. As a successful real estate investor himself, he now enjoy....

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