When you go to buy a house, you come across various channels, from purchasing directly from the real estate developer to going via property consultants and real estate agents. The tough choice of picking a channel falls upon you – what is the best way to go in your journey of becoming a homeowner. Many people opt for real estate agents, as they come with a lot of benefits, such as reducing hassle, saving time, and more.
However, there are also some disadvantages that they may come with. In this article, we take a detailed look at both the advantages and disadvantages of buying a home through a real estate agent.
Pros of having a Real Estate Agent
- Better utilization of time: When you are working with a real estate agent, you do not have to worry about carrying out all the responsibilities of tasks involved in the purchase of a house. They can help you close a deal quickly with their knowledge and expertise in the area. In other words, real estate agents ensure that you don’t spend all your time looking for a place to buy, comparing properties and finding banks for your mortgage. They do the handy work for you.
- Improved bargaining and negotiations: A good real estate agent will not only bargain on your behalf but also ensure that you get the property at the right price. With their art of persuasion and knowledge in the field, you can rest assured that you will be offered a reasonable price by the seller. They will also help you avoid making any financial mistakes.
- Knowledge of market trends: A certified real estate agent knows his trade and understands the local market in a way that you cannot. They are aware of the market trends and hold better judgment when it comes to setting price points and locations. And in cases, where they may not have enough information about a particular area, they know where to find it. They can advise you on better areas or places that you should avoid buying a house in.
- Legal work and contracts: In simple words, there are better chances of you avoiding any scams and mistakes when you are going via a real estate agent. They can help you with the finalization of your contracts and any paperwork that is required to ensure a legal contract.
Cons of having a Real Estate Agent
- Divided attention: Most real agents are swamped with work and dealing with multiple clients, which may result in a lack of attention to you. This can cause delays and slightly less profitable deals sometimes. It is important to ensure that your real estate agent will be regular and available at your service at every stage of the buying process.
- Paying high commissions: Hiring a full-time real estate agent is not a cheap option, you will have to shed a good amount of money. They have standard commission rates that are quite high, usually ranging between 5 to 10 percent of the selling price.
- Dealing with a middleman: Engaging with a real estate agent for the purchase of your house may lead to a loss of power from your hands as they would be the ones dealing with all the interactions. This may lead to loss of crucial information from reaching you or a conflict of interest in some cases. It is very important to have trust with the agent as they would be sharing your interests with the seller.
- Credibility: It is very important that you do your research before you decide on an agent. Look for experiences, certifications, past dealing and so forth to ensure that your real estate agent meets the mark. Making sure that the person who is working on your behalf is trustworthy and credible is half the problem solved.
In conclusion, know that a real estate agent is superb at selling themselves as that is a part of their job, but just because something looks good, it doesn’t mean it will be good. Do your research before you pick any person to help you find the house of your dreams.
Shapoorji Pallonji Real Estate offering luxury 2 BHK Flats in Mumbai, Thane, Pune, & Bangalore at a prime location with all luxurious and modern amenities.
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