Many people do not like the idea of working with real estate agents because they feel that direct negotiations allow them to work for their best interests. In most cases, this is possible especially if both parties are reasonable people. However, buying a home is not like buying car. Investing in a home means you have to determine whether it will maintain its value. An experienced real estate agent from Frankelrealtygroup.com can provide local market knowledge necessary to make an informed decision on what to buy and how much to pay.
Why do you have to buy a home when you can always rent?
There is that wrong assumption that renting is a waste of money because you are not building equity on the home. On the other hand, if you buy a home too quickly, it can be a financial risk. You need to take out a mortgage to cover the cost of a new home. In the first few years of a 30-year mortgage, you will be paying the interests and only a small amount will be deducted from the principal. This is essentially paying the bank for rents on your new home. If you need to sell the house after 2 or 3 years, the transaction costs will wipe out the equity that you have accumulated. You will be better off renting than buying a home until you have decided to finally settle down in one area.
If you need to buy a home, do not be in a hurry
When you hurry, you tend to commit mistakes. When you move to a new city, you should probably rent for a few months until you get a feel of the place. Check different communities until you find a neighborhood where you can live a comfortable and peaceful life. Once you have found an ideal place to have a home, get preapproval for a loan so that you will know the price you can offer. If you are a first time buyer without any experience in real estate transactions, you will do better with a real estate agent who will work for your best interests.
Choose the real estate agent carefully
You can buy a home without a real estate agent but it makes sense to work with a professional who will guide you throughout the process. You can ask some of your friends for referrals on trustworthy real estate agents they have worked with the past. A good realtor is someone who encourages you to wait until a better deal comes along. He won’t pressure you to make an offer for every home that happens to be in the listing. He will advise you to be cautious if he feels that you are overbidding for a home that needs a lot of improvements. This is an indication that the real estate agent is working for your best interests and he is not after the commission he is going to earn when he completes a sale. But of course, some can be more ethical and conscientious than others in the industry.