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Why you should have a Realtor represent you in the purchase of your new home

Reason #1: It’s Free!

In Illinois, sellers pay brokerage fees which means that as a buyer, there is no cost to you!  Honestly, this should be reason enough….  However, I hear countless stories of buyers who choose not to use a Realtor because they were told (by the seller mind you) that they would get a better deal on the price.

Let’s think about this for a moment….  In theory, this sounds like it could be true.  The average brokerage fee for sellers is 5% of the purchase price and half of that fee goes to the buyer’s agency.  Therefore, it would stand to reason that if a seller doesn’t have to pay the buyer’s agent they could just pass on the savings directly to the buyer, right?

Wrong! Giving the buyer a 2.5% “credit” on the purchase price defeats the whole idea of trying to swindle the buyer in the first place.  In offering to give a buyer a discounted price, the seller is really only trying to save him/herself money, right?  So, at most, a buyer will get something closer to 2% off the purchase price (in reality, you will probably only get 1% off, if that.)  The seller will make it SOUND like it’s a win-win situation:  he/she saves money, you save money!

Reason #2: You wouldn’t go to court without an attorney, right?

Let’s take a concrete example in order to clarify what I wrote above:  let’s say a buyer wants to purchase a home listed at $100K.  Let’s also PRETEND like the seller will give the buyer the full 2.5% “discount” off the purchase price – that’s a total discount of $2,500.  The price of the home is now $97,500.

Realtors can save you on average, anywhere between 3% – 10% of the purchase price (obviously there is no rule of thumb here because in negotiating the price of a home you have to take into consideration market conditions.)  Realtors can also do things like negotiate closing cost credits (adding another 1%-3% or more off your total cost.)

Realtors can also help you negotiate any necessary repairs.

The list goes on and on….  The point is Realtors are expert negotiators and they will use their knowledge of the market in order to get you the best possible deal.  Your Realtor acts as your representative in negotiations, the same way that an attorney represents you in court.  Would you rather try to fend for yourself or would you rather have an expert do it for you?

Bottom line: sellers are going to do the same thing you want to do, which is get the best possible deal for themselves and in trying to do so, they will give you the smallest concession possible.

I touched on this above but it’s worth emphasizing here:  a Realtor is an expert in the field of Real Estate.  Too often buyers think that they can do all of the necessary research online, by themselves.  The truth is, a lot of information CAN be found online by the general public BUT there is also a plethora of information that only a Realtor has access to.  You must equip yourself with as much information as possible in order to put yourself in a position of power when negotiating (just as an attorney does.)  You must have in depth knowledge of the market.

Reason #3:  Contracts, Attorney Review, Home Inspections and other terms that need defining

You can certainly bypass using a Realtor and go directly to a real estate Attorney who will be ale to handle the contracts for you BUT the buying process involves a whole lot more than just filling out a contract.  Don’t get me wrong, a good real estate Attorney is invaluable but he or she is just one of the players on the team that you need to assemble.  The truth is, EVERY member of your team is important and your Realtor acts as the glue that holds the team together.  Your Realtor can recommend the best attorney and can recommend the best home inspector and lender to use because chances are, they’ve worked with many and can guide you in the direction.

A Realtor will help guide you through each phase of the process from the initial purchase contract negotiation period, to the Attorney review period, to the inspection, to the closing.  And if any of these terms are unfamiliar to you or sound foreign, that’s probably reason enough to find a good Realtor.

Reason #4: It’s Free!

Oh wait…. have I mentioned that before?