It’s no surprise that the majority of home buyers now start their home search on the Internet. The numbers are pretty staggering. The NAR (National Association of Realtors) reports that more than 80% of home buyers use online resources to find a home. Why wouldn’t they? The Internet has revolutionized the way we share information, and home listings are no exception. Any realtor will also tell you that home buyers expect lots of tangible data: pictures, area statistics, market conditions, etc. This information is readily available to anyone who can access the wealth of real estate resources online.
Before the Internet revolution, realtors were generally the only individuals who had access to available listings, so consumers had to seek the help of a realtor to find their home. Print advertising, like newspapers and real estate-specific local publications, were another source of listing data for buyers. However, these resources were not complete because brokers usually cannot advertise in print format every listing they have available. Ultimately, a realtor was the only person with the complete inventory to present to a buyer.
Since buyers now have immediate access to all the most updated listings (generally) via the Internet, some consumers feel they don’t need an agent to represent them in a buyer’s transaction. However, these individuals couldn’t be more wrong.
Realtors are experts. Realtors in all states are required to be licensed to assist and oversee a real estate transaction. Licensing involves rigorous study, knowledge of law and practices, and the passing of a strict written exam. Like doctors, realtors are required to keep their education current in order to keep their license valid. This is accomplished by continuing education in all aspects of real estate and real estate law.
Although the Internet offers consumers access to listings on the MLS (Multiple Listing Service), not all properties appear or are easy to find. Remember that buying a home is about finding the one right fit, and you might scour hundreds of listings before finding what is right for you. Your realtor can help in the selection process by providing you with all the information about a property, the area, zoning laws, school districts, etc. A realtor has his finger on the pulse of the local market; he knows of homes that might not be on the market yet but will be available for purchase. Why would you limit your selection by not knowing these opportunities?
Your agent will assist you with a comprehensive and thorough evaluation of properties. Things aren’t always what they appear, and a listing on the Internet with well-shot photos might, in reality, be vastly different from what you see on your computer screen. Depending on the condition of the property, its location, and other factors, your agent will help you identify what inspections will be necessary to ensure that your purchase won’t turn out to be a money pit. She will provide you with concise reports on a property, including liens and easements (access rights). She can help you eliminate bad home buying choices and resolve issues that might cause problems later—issues that might not be readily apparent online.
A realtor knows his local inventory intimately and can help save you time and energy by informing you of the reality of listings. He will give you up-to-date information on what is happening in the marketplace, and the price and terms and conditions of listed properties.
Your agent can help you determine how much you can actually afford. She has access to all lenders. She can also help you understand all your financing options. Banks and mortgage brokers are limited in their choices of lenders. Not using a realtor can significantly limit the amount of money you might actually qualify for.
After your agent has helped you identify the property and financing that is right for you, he will help you negotiate the best price. Putting an offer on a property based on information you find on the Internet or print media alone will generally make you a buying client of the listing agent. Listing agents have the best interest of their sellers in mind. They must in order to secure the best price and terms for their clients. Buyers who make an offer to purchase without their own agent representing them and their best interests are at a huge disadvantage, and could stand to lose a lot of money or get stuck with a bad purchase.
Your realtor will guide you through the closing process. There are many places a home purchase could fall through. Your agent will make sure it flows smoothly and ends in a successful purchase.
If you’re looking into buying a home, use the Internet to educate yourself about what might be available. Knowledge is power, and the more you learn on your own will be an asset. Your knowledge can synergize with your agent’s to form a powerful team—a team that can achieve results with your best interests in mind.
Meet with and interview realtors before you choose one. Each one has a different approach and style, some of which might work better for you than others. When you’ve met the right agent, sign with him. Agents are willing to be flexible on the time and terms of an agency agreement. When you sign a buyer’s agreement with a realtor, he is bound and obligated by his fiduciary responsibility to his clients. A fiduciary duty is the highest standard of care imposed at either equity or law. A fiduciary is expected to be supremely loyal to the person to whom he owes the duty, in this case the buyer. Any non-fulfillment of these obligations puts the agent’s license at risk, and no realtor wants to jeopardize his license’s standing.
A fiduciary cannot have a conflict of interest. An agent who has a signed buyer client must not put her personal interests before her duty. Signing with an agent ensures you have these loyalties. Acting as your own agent, by locating properties online and placing offers without a signed agency agreement, makes you subject to the sellers’ whim.
Remember that simply shaking an agent’s hand before viewing properties isn’t enough to ensure that you are getting all the fiduciary duties due you as a consumer. Sign the agency agreement and get the agent working for you. Don’t try and be your own expert when making a home purchase; use a realtor and you’ll find that the transaction will go more smoothly and will proceed with certainty through the obstacles that home buying presents.
