If you’re a first-time home buyer, the process of purchasing your dream home can be overwhelming and seem complicated. Where do you begin? The first question most people ask themselves is: Should I use a real estate agent?
There are millions of traditional real estate agents throughout the United States, and most home buyers have a family member or friend who is an agent. If you’re one of those buyers, you probably trust that person, think they work hard at their job, and hope they will offer you a competitive deal. You might even worry that it could damage your relationship with them if you choose to buy a home with someone else. Before you make a major decision based on guilt or obligation, you might want to consider the substantial cost of using a traditional agent to buy a home.
The Real Money
Here’s the first thing you need to know, it’s not free to use an agent! A traditional buyer’s agent typically earns a 3% commission on the sale of a house. So a $300,000 house means $9,000 goes directly to the buyer’s agent. $9,000! Because homeowners often finance their homes, that $9,000 turns into even more money over the life of a 30-year loan. If you think sellers are paying this for you, think again. You see the money you bring to the table pays for both the seller’s agent and your agent. Does that sound free to you?
The Real Emotions
Houses are not a commodity where details don’t matter. Your house is YOUR HOME. The job of a real estate agent is not to decide your price range, home size, budget, and location. That is all up to you.
The Real Work
Times have changed. When your parents were buying a house, they had no way of knowing which houses were for sale until they contacted a real estate agent. According to the National Association of Realtors, the majority of home buyers today search for and often find their own homes without their agent, usually by browsing the internet or driving around their targeted neighborhoods. This is just one more part of the job that used to be on the agent that is now in the hands of the buyer. Keep in mind that even though buyers now perform many tasks once executed by buying agents, you’ll end up paying the full buyer agent commission.
The Real Focus
In the book Freakonomics, world-renowned economist Steven Levitt published his thoughts about the misalignment between the interests of real estate agents and those of their clients. Agents are better served if sales happen quickly and at a high price. Buyers are best served if the home is right—even if it takes a long time to find—and the price is low. The studies he cites clearly show that agents are choosier, take more time, and find better deals in buying and selling their own homes than those of their clients. If you do decide to use a traditional buyer’s agent, never make an offer until you are sure the house, the price, and the details of the home loan are a good match for you.
Who’s Got Your Back?
In the golden days of real estate agents, buyers had little knowledge of how to navigate the sea of professionals necessary for making a home purchase and had to rely on recommendations from their agents. These days, a quick internet search can give buyers tips on how to find and choose everything from a lender to a title company.
Welcome to Homie. Homie is a one-stop platform that provides you with a dedicated buyer’s agent to help you through your journey and an easy-to-use app to make the process simple. On top of having an experienced agent on your side, you can get up to $5k back to help you with closing costs. Say whaat?
Homie will give you up to $5k back of what the seller listed as their Buyer’s Agent Commission. We like to spread the love.
Should You Hire an Agent?
Yeah! A Homie agent! Skip the traditional way of selling your home and get buying with Homie. We can’t wait to help you find your dream home and save. Click here to start browsing homes in your area.