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When you’re ready to purchase a home, one of the first choices you’ll face is whether or not to work with a Realtor or real estate agent. While buying a house without one is possible, partnering with a knowledgeable professional can make the process smoother and help you find the right home faster. From offering market insights to handling negotiations and legal paperwork, a Realtor can be a valuable asset in your home-buying journey.

In this guide, we’ll cover what a Realtor does, the benefits of working with one, and how to find the right professional for your needs.

What Is a Realtor?

A Realtor is a licensed real estate professional and a National Association of Realtors (NAR) member. This membership ensures that they adhere to a strict code of ethics, which means you can expect higher standards of conduct and accountability compared to agents who aren’t affiliated with NAR.

However, not every real estate agent is a Realtor. Real estate agents are licensed professionals who assist buyers and sellers with real estate transactions, but only NAR members can be called Realtors.

You may also encounter real estate brokers during your home search. A broker has completed additional education and licensing beyond what’s required for a real estate agent. Brokers may operate independently or manage teams of agents.

Realtor vs. Real Estate Agent vs. Broker

While you can work with any of these professionals during the home-buying process, choosing a Realtor offers the added assurance of higher ethical standards.

Why Work with a Realtor?

Although you are not legally required to have a Realtor when buying a house, working with one offers several advantages. Realtors provide in-depth knowledge of the housing market and can be an invaluable guide through a complex and overwhelming process.

Local Market Knowledge

One of the main benefits of working with a Realtor is their knowledge of the local housing market. Realtors can access comprehensive market data that isn’t always available to the general public. Based on your budget and preferences, they can help you identify the proper neighborhoods and find homes that meet your criteria. Realtors also have insights into pricing trends, allowing you to avoid overpaying for a home.

Additionally, Realtors can help you understand the community, including schools, transportation options, amenities, and more if you’re new to an area. This is particularly useful if you’re moving to a different city or state and need someone to guide you through local living conditions.

Negotiation Expertise

Once you’ve found a home you’re interested in, negotiating the purchase price and other terms is a critical step. Realtors are experienced in negotiations and can help you secure the best possible deal. Whether negotiating a lower price, asking for repairs, or adding contingencies that protect you in case certain conditions aren’t met (like securing financing or passing inspections), a Realtor can act as your advocate.

Legal and Contractual Assistance

Buying a home involves a substantial amount of paperwork and legal requirements. Realtors are well-versed in real estate contracts and will help you navigate the complex documentation needed to complete the sale. They can also explain terms you may not fully understand and ensure your rights are protected.

For example, if there are issues with the inspection, a Realtor can negotiate with the seller on your behalf to resolve the problems. They’ll ensure the purchase agreement includes appropriate contingencies so you can back out of the deal if certain conditions aren’t met, such as securing financing or the home passing an inspection.

How Does a Realtor Get Paid?

Realtors work on a commission basis, which means they are paid a percentage of the home’s sale price once the deal is finalized. Typically, the seller pays this commission, but it’s often factored into the home’s overall cost.

Commission Breakdown:

While this commission structure might seem like an additional cost, the services a Realtor provides—such as market expertise, contract management, and negotiations—can often lead to better financial outcomes, potentially saving you money or securing better terms in the long run.

Can You Buy a Home Without a Realtor?

Although many buyers prefer to work with a Realtor, purchasing a home without one is possible. However, going through the process on your own comes with its own set of challenges.

Potential Downsides of Buying Without a Realtor

How to Find the Right Realtor

Finding the right one is crucial if you work with a Realtor. The best place to start is by requesting referrals from friends, family, and colleagues who have recently bought or sold a home. Personal recommendations can provide valuable insights into the Realtor’s communication style, work ethic, and effectiveness.

In addition to referrals, you can research Realtors online to read reviews and check their credentials. Many websites allow you to see how a Realtor has performed in past transactions, which can help you make an informed choice.

The Bottom Line

While you don’t need a Realtor to buy a house, having one on your team offers significant benefits. Realtors provide essential market knowledge, handle negotiations, and ensure the legal aspects of the transaction are appropriately managed. If you choose to work with a Realtor, take the time to find someone who understands your needs and priorities. With the right professional, you can navigate home-buying with greater confidence and peace of mind.

FAQs

What happens when a buyer doesn’t have an agent?

Without an agent, the buyer must handle negotiations, paperwork, and home search logistics independently, which can be challenging without professional guidance.

What are the pros and cons of using a real estate agent?

The pros include expert negotiation, access to listings, and assistance with paperwork. The cons may include agent fees and less control over the process.

What is the difference between a buyer’s agent and a realtor?

A buyer’s agent represents explicitly the buyer’s interests in a transaction, while a Realtor® is a licensed agent who adheres to the National Association of Realtors’ code of ethics. A buyer’s agent can be a Realtor®, but not all buyer’s agents are.

 

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