Friday, September 20, 2019 / by Harvey Rosenberg
Do It Yourself Home Buying
Yes, these days you can do it yourself, but why? As a buyer, working with a buyer’s agent gives you years of insight and knowledge as to what’s going on in the market as well as someone to negotiate on your behalf. A Realtor is a professional that will know the market better than anyone else because they are doing it every day.
A Buyer's agent typically does not cost the buyer any commission fees. The commissions are worked in the sale of the house and come out of the seller's profit.
A buyer's agent can also help with the following.
Create a Budget
Before you start shopping, you should know how much home you can afford. Get a general idea of what you can afford to spend monthly on the home loan, a well as any HOA fees that may factor into your monthly payment. Not sure where to start? A Buyers Agent can help you figure out the loan payments and often include your property taxes, homeowner’s insurance, and any mortgage insurance you many need to carry.
Determine Your Down Payment
Now that you have a budget, a Buery's Agent can help you negotiate and navigate what your down payment will be.
A down payment, whether coming from your savings, the sale of your current house, or a family gift, does lower your monthly expenses. This will be a number you’ll give a lender when applying for a loan in the next step. Also, don’t forget about closing costs. Sometimes this can be added into the loan, others it cannot. Plan for about 3-5% of your purchase price.
Getting pre-approved when you start shopping for a home, gives you more power to negotiate. Additionally, it ensures the closing will go smoothly and quickly. You’ll give your budget and down payment to a lender, and they’ll give you an idea of what you can afford, price wise.
A buyer's agent has the connections to find you the right lender based on your budget.
A home is a big purchase. Don't go it alone, get a buyer's agent to help. Need recommendations? Search our agents here.