Do You Need a Realtor When Buying a Home?

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8 Reasons to Choose a Real Estate Agent Over "For Sale By Owner"

When you sell your home yourself— also known as "for sale by owner” (FSBO)— it may seem like a great way to save thousands of dollars. After all, the standard real estate agent’s commission is 5% to 6%—that’s $12,500 to $15,000 on a $250,000 home.1 Given the size of this fee, you may think that acting as your own seller’s agent will surely be worth the savings. Here are eight reasons why you may want to reconsider.

1. Realtors May Not Show a "For Sale By Owner" Home
2. Agents Avoid Emotional Sales
3. Real Estate Is a Full-Time Job
4. Agents Access Large Networks
5. Weeding Out Unqualified Buyers
6. Price Negotiations Take Skill
7. You Ignore Your Home’s Flaws
8. Exposure to Legal Risks

The Bottom Line
It’s a tall task to learn how to sell your house without a realtor—and selling your home will likely be one of the biggest transactions of your life. You can try to do it alone to save money, but hiring an agent has many advantages. Agents can get broader exposure for your property, help you negotiate a better deal, dedicate more time to your sale, and prevent your emotions from sabotaging it. An agent brings expertise, which few FSBO sellers have, to a complex transaction with many potential financial and legal pitfalls.

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#RealEstate #HomeBuyer #Realtor
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DISCLAIMER:
This video is for entertainment purposes only. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video.

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[JakeBroe]

Thanks for watching! Check out my entire playlist of videos on buying a home here:

[junsamee]

There is also a conflict of interest for the buyer’s agent - the higher price the home sells, the higher commission they get. They only get the commission only if they sell the house for that matter. The system is formulated in such way that is in the best financial interest of the buyer and seller’s agent, NOT the homebuyer or seller. The commission should just be a flat fee that is agreed upon and not per the price of the home

[corywooten]

Stay away from school zones. At the time I didn’t think I would mind being near a school. The drop offs and pickups are times are brutal. Kids everywhere and cars everywhere. We bought our house in the summer. Of course school was not in session.

[overachiever]

Nah cause say a house is 400k and your fee rate is 6% that's another 24, 000

[yourbigheadcousin]

So ny realtor has no incentive to get me a better price when buying. Theyre basically working for the seller the whole time.

[chriserickson]

Something tells me that you are a Realtor. Thanks for the video.

[stephen-finance]

Loved the breakdown! Agents can come from anywhere on the competency spectrum, so making sure you are dealing with a top tier agent is definitely a good idea. Getting an agent that's a family friend doing it on the side one day a week doesn't work out in your favor much of the time.
Also, getting homes inspected before closing is important. While this will cost money, a good agent can use the issues found in the home to help you save on the sale price.
Great video!

[muffemod]

"Real estate brokers have an inherent conflict of interest with the sellers they represent, because the usual commission structures of brokers motivate them to sell quickly rather than to sell at a higher price. However, a broker representing a buyer has a distinct disincentive to negotiate a lower price on behalf of their client, because they will simultaneously be negotiating their own commission lower."

[bobbyf.]

1, ask the right questions. You can find them online.
2, they know some unlisted houses. It doesn’t mean you will make a better deal. If your offer is not high enough, the house will still be listed.
3, maybe these are the only reason why a buyer needs a realtor. But if I don’t need loans or I do homework myself, I would be happy to save 24K+ commissions.
4, the most ridiculous reason. When you want to sell the house in future, why I have to use the same realtor? Perhaps he/she already moved to another state or doesn’t work as a realtor.

[jimmyfavereau]

The buyer ultimately pays the fee, NOT the seller, it's added on and with interest!

[parsapersian]

You don't need an agent and you can ask the seller to discount the house since you are going without an agent. Bring a great contractor or inspector as a friend with you before offering

[QTMarkus]

Very good info. I’m a real estate agent in Kansas. I’d note a couple things:

1. I’d ALWAYS recommend getting a knowledgeable agent if you are buying (unless of course, like you said, buying from your immediate family).

2. I’ve learned a lot about warnings signs (especially foundations). While I’d never make recommendations personally, I can point out something you’d like to get a professional’s opinion on - like potential foundation problems.

3. Your second point is so important. I know some very good agents in other states that are very capable and some that are very much not capable.

4. Agents can also recommend other negotiation tactics other than cash that can help you win the bid.

Phenomenal video Jake!

[flybyed]

Can you take make videos of your experience when you buy a home. Thanks!

[Isaiah]

Real estate agents that are part of the association of REALTORS also have access to a service called the Multiple Listing Service that many homes are listed on and must have more accurate information than what Zillow has

[calvinburr]

I used to think a real estate agent was too expensive and not worth it, and I bought my first two homes without one. I now realize with hindsight that a realtor would probably have saved me a ton of money in a number of ways. Of course, like everything else, you need to make the agent you choose to represent you is attentive to detail and truly has your best interest as a priority. Additionally, a decent real estate agent will help you avoid serious legal problems, and it only takes a fairly small legal problem to realize that having an agent is a very inexpensive "insurance" to protect you from common pitfalls. Even a small legal snag involving a real estate transaction can freeze a person's ability to buy or sell a property until it is resolved....and we all know how slow things are in the courts....you could be in limbo for a year or more, all the while legal bills pile up. A good agent makes this nightmare scenario far less likely.

[nicks]

As usual, excellent video. We just sold a house, and we weren't in the same state. A realtor was clutch to handle all the things needed.
That said, thanks for letting us follow you through your experiences and sharing your research. It's helpful!! Cheers bro.

[leighdevereaux]

Solid advice about real estate agents, but I’m still concerned about your moving to Vegas. The lack of water in the southwest is no small issue and the rising heat will make some places uninhabitable. You strike me though as someone able to accept change and adapt quickly.

[coreysantos]

What’s the difference between me (buyer) going to the bank and getting a pre approval. Finding a for sale by owner and drafting my own offer letter… if I buy a used car I’m not going to call a used car agent to come take a commission off my loan… never understood that… seems like everyone wants to be a realtor these days…

[hansschotterradler]

I sold a home without an agent once, . Got the same money as other sellers in the neighborhood. Still had to pay the buyer's agent. BTW, the buyer's agent did all the work.

[thejokerspeaks]

I found a house worth 120K, for sale privately for 92K, back in 2005. The owners had it as a rental, and for whatever reason, were avoiding capital gains taxes. I paid a local realtor 1.5% to represent me (their normal commission after splitting with the listing agent and a broker). I immediately flipped the house, and was happy to pay the capital gains for them! Might be a long shot, but it never hurts to look at "for sale by owner", for deals.