Buying a home in a major milestone in anyone’s life. Their home is a place where they have peace, can plan for the future and of course raise their kids. Also, having a home of your own spares you the annual cost of paying rent which means paying down your own mortgage rather than paying someone elses! The thought of buying a home can be scary at first, especially when you take into account all you’ve heard from existing homeowners. The task of buying a home can be extra intimidating if this is your first ever home however, not all you hear about homebuying is true so now let me dispel 5 homebuying myths still so many people believe!
Myth #1: Working With A Real Estate Agent Is Expensive
As of 2019, an estimated 90% of homebuyers in America acquired their homes through the help of a real estate agent. If you’ve heard the myth that working with a professional realtor is expensive, then you may be wondering why so many home buyers still seek their services. It’s not unreasonable for us to want to save money, not just on homes, but on everything else we purchase. The truth is, there isn’t much to be saved if you decide to go home-hunting on your own. You could actually lose out if you end up with an undesirable property. So what’s the cost of hiring a realtor? Most realtor commissions sit at 6% of the home’s selling price. And this commission is shared between the agents of both the seller and the buyer.
This means both agents only receive a 3% share of the selling price. So if you’re purchasing a home at a price of $250,000, the 6% commission of $15,000 would be split two ways ($7,500 per agent). This may seem like a lot of money, but it’s not, when you consider all the work a realtor puts in to help you find a home that’s just right for you.
Among their duties include studying home listings that fit your tastes and budget, assessing market prices and facilitating contract negotiations, giving you information on the current market trends, scheduling home visits and acting as your representative throughout the whole purchasing process. All this work for just 3% of the total selling price is fair enough. If you were to perform all these duties on your own, chances are you would get fatigued along the line and may be forced to settle for a…