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Why Do I Need a Real Estate Agent?

Not counting money, what was is the one thing you wished you had more of ? Did you say time?  If you're like most people, you're trying to balance work and family among all your other responsibilities, in addition to trying to find some time for yourself. Oh yeah, and sometimes – probably not often enough – you sleep too.

So, now you want to buy a house and you're a die-hard, do-it-yourself kind of person. But before you jump into the house-buying process alone, first know that you probably won't save the commission.  After all, the seller, knowing that you are not working with an agent, is going to try his hardest to save that same commission.   The commission is built into the prices of homes in America and is almost always paid by the seller.

Still think you want to do it alone? Ask yourself these questions first:

• Am I familiar with the different types of mortgages and down payment plans offered by lenders in the area?
  
  By sharing with your agent information on your financial status, your agent will be able to refer you to different lenders or mortgage brokers who can craft a loan you can afford.  Not all lenders are the same and not all lenders offer the same types of loans, which is why you don't want to waste time with lenders who cannot or will not help you.
  
  
• Where are houses in my price range?
  
  Your agent has all homes that are available for sale in the Realtor Multiple Listing Service (MLS) and will be able to narrow your home search to houses that fit your needs and price range.   They are also familiar with new home developments, For Sale By Owners and often know of sellers willing to sell which are not openly on the market.

• Do I know how to, and have the time, to foresee or resolve transaction problems?
  
  Even if you do know every step you must take to qualify for a mortgage loan, there are bound to be kinks in the rope, delaying the process. Your agent's job it to smooth out the kinks and make sure potential delays don't prevent you from buying the house. Your agent will also schedule appraisals, home inspections and meetings with the seller.
• Do I understand the current real estate market in the area where I am looking to buy?
  
  Real estate agents eat, drink and sleep houses. They know the current market. Without an agent or a good sense of the selling price of other similar homes in the area, it will be difficult to determine a good pricing strategy – a good price for you and one that the seller would be willing to accept.

·         Will I be able to stay emotionally detached so that I can negotiate effectively?

Memories are made in homes. That's why people become so emotionally attached to the the price they're willing to offer or the price they’re willing to accept.

Agents, as third parties, can be more objective. They'll use their knowledge of the housing market to help you determine a good offer to make on the house. They'll protect you from paying more than the house is worth.

·         Do I have an understanding of real estate law, my rights and responsibilities as a buyer, as well as the paperwork I will be filling out?

A real estate agent should never be considered a good substitution for a lawyer. However, your agent knows the state and local laws that will affect your home-buying process.  He/she is authorized by the State to complete all of the necessary forms.  They will help you through the entire process so that you can go about living life.  

Now, if you answered yes to all or at least most of these questions, then hallelujah and happy house-hunting!  If not, you can always bury yourself in the library until the wee hours of the morning studying real estate law, the current housing market and different types of loans.

Of course, you could engage an agent.  An agent is an expert in the housing market and the process of buying a home.  An agent will save you a precious commodity – time. Time you could spend with your family or more time you could spend with the sandman every night. Your agent will stay up late, so you don't have to.