A realtor’s job is often overlooked and misunderstood. In some cases, realtors may even seem like an age-old, useless profession that takes a 5 to 6 percent commission for hardly any work. But this couldn’t be further from the truth.

In fact, realtors have a crucial job by facilitating real estate transactions and ensuring their clients get the best deal when buying or selling their next property.

Are you thinking about buying a home this year without a realtor? Well, you might want to think twice. This article discusses the risks of buying a house without a realtor and why you should always work with a qualified agent when buying or selling a home.

The Role of a Realtor

Realtors often wear many hats when working with their clients and closing real estate deals. Here are their most important roles and responsibilities:

• Understanding the Real Estate Market: Realtors are expected to have a deep understanding of the local real estate market and economic trends like interest rates, property values, and neighborhood dynamics. Try asking your realtor probing questions about the market to assess their understanding of the real estate industry.
• Property Research: Whether they’re working with buyers or sellers, realtors have extensive experience conducting property research. They work to find potential properties for buyers and comparable properties when working with sellers. For buyers specifically, realtors can find properties that match their needs based on their budget, location preferences, and home size.
• Property Valuation: Realtors also provide advice on property valuation for buyers and sellers. Sellers rely on their realtor to list the property at an appropriate price point, while a buyers agent advises their clients on whether or not a property is appropriately priced and worth pursuing. 
• Negotiating: Buyers and sellers also depend on realtors for negotiations. They work to secure favorable financing terms for their clients when it comes to the purchase price and various contingencies on the sale.
• Contracts and Paperwork: Realtors have specialized training in drafting contracts and legal documents for real estate purchases. They’ll make sure all terms and conditions are clear and in compliance with local and state regulations.
• Property Showings: You’ve found a few properties online, but now what? You’ll need a realtor to communicate with the seller’s agent to schedule showings and property tours before making any offers. Realtors answer your questions and address your concerns about the property if you don’t think it’s the right fit. 

Risks of Buying a House Without a Realtor

Now that you understand the main responsibilities of a realtor, let’s talk about the risks of buying a house on your own.

Limited Knowledge of the Local Market

Buyers without a realtor often have a limited knowledge of the local real estate market. This limited knowledge can lead to overpaying if a buyer lacks access to information about comparable properties and local market trends. 

Conversely, buyers may also undervalue properties without a good understanding of the market. They may miss out on great deals because they’re constantly underestimating home values in the area.

Lack of Negotiating Skills

Like we mentioned previously, realtors are skilled negotiators and buyers may not be able to buy a home with favorable terms without a realtor. 

Buyers without the same negotiating skills will likely find it hard to get sellers to agree to beneficial terms like price reductions, repairs, or favorable closing timelines. 

Legal and Contract Issues

Any transfer of real estate involves legal paperwork and contracts between both parties in the transaction. Without a realtor, buyers could find themselves wrapped up in legal problems related to title issues or local zoning regulations.

Additionally, buyers drafting the paperwork themselves are prone to errors in contract terms and misunderstandings that can lead to trouble down the line. 

Navigating Inspections and Appraisals

Inspections are a critical part of the home buying process and, without a realtor, buyers may not be able to interpret inspection reports accurately. This can lead to purchasing a property with hidden issues and unexpected repair costs after the purchase.

Appraisals are also another key consideration and something that realtors thoroughly understand. If a property appraises for less than the agreed-upon purchase price, buyers may face challenges securing financing and closing the sale.

The Bottom Line

Buying a house without a realtor is like going on a city tour without a tour guide. You may think you know the lay of the land, but without a tour guide, you could miss out on new sights and find yourself lost in the worst part of town.

The same is true when buying a home. Just as a tour guide can provide context, answer questions, and make the journey more engaging, a realtor does the same in the real estate world. 

Are you ready to start your home buying journey? Prospera Realty is the #1 real estate broker in the Tampa Bay area. Visit our website or give us a call at 813-434-0290 to work with a trusted real estate agent in your area!