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The purchase of a home, especially your first home,
is a big investment requiring one of the largest commitments you
will ever have to make in your life. For first-time buyers, this is
a new venture into the financial world and there will be parts of
this lending process that are completely new to you. You will
probably wonder whether you should retain the services of a realtor
or whether you should take on the buying process on your own.
Buying a home does not require hiring a real
estate agent and even if the seller does have an agent, you
can still contact this person on your own. You do have to be
aware that this agent has been hired to act in the best
interests of the seller and will try to close the deal at
the highest price possible, as per the terms of the contract
between the seller and the agent. This person does not have
any obligation to you and therefore it is very unlikely that
you will be privy to any additional information about the
property or any confidential information that may be
beneficial to you.
If you have your own real estate agent to
work for you, you have the advantage of both experience and
knowledge in the buying process. The agent will work with
your interests in mind and will be able to negotiate with
the seller in order to obtain a lower price for the home.
One of the main ways in which you will benefit from the
services of your own real estate agent is that this person
will offer you a wealth of assistance in finding a property
that meets your needs within your price range for a home. Most buyers are not aware of the fact that they can
work with a real estate agent without having to sign a contract with
this person or the agency. For first time buyers inexperienced in
the buying process, this is a good idea until you learn some of the
basics of buying. Working without a contract will also give you time
to determine if this agent will actually do the job you need and
whether you can have a good working relationship.
Without the benefit of a contract, a real estate
agent does not have a legal responsibility to keep confidential
information about the highest amount you are willing to pay for a
property. Some agents work for both buyers and sellers. If your
agent is also representing a seller, then he has to share the
information with you as the buyer. It is best to work with an agent
without a contract for a short period until you get the lay of the
land, so to speak, in the buying process.
There should be no pressure on the part of the agent
in trying to get you to sign a contract. If this happens when you
contact a real estate agent, you would be well-advised to start
looking for a different agent or agency to work with. A typical
agreement lasts for three months, but if you are not completely
sure, you can inquire as to whether or not you can sign an agreement
for a shorter term. Another option is to sign a non-exclusive
agreement. Under the terms of such an agreement, although you do
have a real estate agent, you can also work with other agents at the
same time.
You do not need to have an agent to work for and
with you when you are buying a home. However, having an experienced
professional to work with will make buying a home a much more
enjoyable experience. You, as the buyer, do not have to pay the
commission and in most cases, your agent and that of the seller will
split the commission that results from the sale. It won’t cost you
any money to have a real estate agent to work for you.
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