No Agent Real Estate
What is the best way to find a real estate agent?
We're first time home buyers and I don't know anyone in our area that's actually purchased a home - so I have no way to get a recommendation. Should I just check realtor.com until I run across someone that's particularly helpful? Is there particular well know real estate agents such as Century 21 or Remax that generally has a good reputation?
What would you recommend for finding a decent one?
Attend open houses in the area and just talk to as many as you can. You'll come across one that you "click" with, and that's a much better way of finding an agent than a cold call to the office or walking in and getting whoever meets you at the door first.
As to relying on national companies....don't go on that alone. They have good agents who work full-time and really put an effort into it, and they have part-time agents who piddle with it as a hobby and really don't care if they sell something or not. Plus, they have a high turnover rate (all agencies do).
A real estate agent's job isn't to sell you a house. A house will sell itself. Their job is to help you find a home. So, you need someone who is familiar with the area and more interested in you than just selling you the first thing you can afford that is currently on the market. The perfect house for you may not even be on the market right now, and a good agent will help you be patient and not push off something else on you so they can just close a sale and move onto the next person. Honestly, I've been happier with the smaller, local companies than the big national companies.
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Real Estate for Sale by Owner – the Advantages Over Real Estate Listed by a Third Party
There are several advantages when an individual chooses to buy real estate for sale by owner versus real estate sold through an agent, listing company, or other third party. These advantages include the money saved on the real estate agent fees, better terms through owner financing, and usually a better overall buying price because of the money saved through the process and the relative inexperience of most private sellers. Therefore, when an individual is looking to purchase a property, it would be a good idea to look at the properties for sale by a private owner before looking at listed properties or attempting to contact a licensed and experienced real estate agent.
Real estate agents make their money through commission. A commission is predetermined rate that listing houses use to provide incentive for agents to sell more property. It is usually a percentage, anywhere from three to seven percent of the proceeds of the sale of the property. This means that the higher the selling price for a particular house, the more money a real estate agent earns. Therefore, an agent tries to elevate the asking price by making the house sound better than it is, offering counter offers from other potential buyers, or advertising characteristics that many people find attraction. This is well and good for the agent and the seller, but not that great for the buyer. Therefore, it is advantageous for the buyer to search out listings that have been offered by private owners because there is no associated agent and thus no incentive to elevate the asking price.
Another advantage to seeking out real estate for sale by owner versus real estate sold through a real estate company is the potential for owner financing. Usually, when a person places a house on the market without the use of a listing company it is because the owner is in need of the money. Sometimes this need turns into desperation. When a seller becomes desperate all options are on the table, including owner financing.
Owner financing is similar to loans and mortgages offered by banks or other lending institutions. However, these private financing options are more fluid and less rigid than bank loans or financing options. Because owner financing revolves around a private individual there are no rigid restrictions associated with the loans. An owner who is motivated to sell will usually offer better terms than a bank might offer. These terms might include a lower loan rate, flexible payment due dates, or smaller penalties for missed or late payments. Another great advantage with owner financing is that you deal with an individual person instead of a large bank or lending institution. This person will be more likely to be lenient with payments.
Finally, and the most important reason to buy from a private owner, is that the bottom line price paid for property purchased in this manner is usually considerably less than property offered by real estate companies. This is so because agent fees are eliminated through this process, there is no incentive for a third party to increase the asking price, and favorable owner financing is usually available.
When buying a house, do not over look the properties available by the owner. They are oftentimes cheaper with more flexible terms than houses bought through a third party.
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Advantages of Selling Real Estate For Sale by Owner.
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