By Attorney David R. Galloway
I recently participated in a roundtable discussion involving financial planners and lenders for first-time homebuyers. A common question presented by attendees was identical to a question often asked by clients who have previously purchased homes – do I need a real estate agent to buy a house? The answer is – it depends on where you are in the process.
Finding the right home is a time-consuming and frustrating process. If you have already located the home or vacant lot you want to buy, a real estate agent may not be necessary and having one could be more costly. For client in this scenario, we can assist by preparing a simple sales agreement which we can present to the seller. When negotiations have concluded, we continue to represent the buyer by assisting them in navigating the financing, title and closing processes. Sometimes legal representation continues post-closing if, for example, the seller knowingly failed to disclose a material defect in the property.
For clients that are still in the beginning stages of the homebuying process and looking at a variety of styles of homes in multiple locations, we suggest they contact a local real estate agent. Real estate agents can unlock the door to hundreds of homes for you to tour. Not every real estate agent, however, is a good fit for every homebuyer and not every homebuyer is a good fit for every real estate agent. Therefore, for the success of the relationship, we recommend vetting several agents until the client finds an agent that understands the client’s needs and compliments the client’s personality. For example, if you are a parent that wants a playground nearby or have a special need which requires certain accessibility requirements within the home, your agent should have some understanding of those needs and know the environment surrounding the property he/she is showing you. Additionally, more and more agents are charging a fee to the buyer, often referred to as a broker’s fee; each agent charges something different so ask about the fee during the vetting process. You will be spending a significant amount of time with your agent so if you and your agent have a good rapport, you may be able to efficiently find the home of your dreams.
