1st Time Home Buyer: Agent Selection TipsAs a 1st time home buyer, you may not be aware that as much as 6% of the cost of the home you are buying goes toward payment of the agent’s commission. When buyers across the country are buying cautiously due to the depressed market conditions, you cannot afford to lose thousands of dollars to agent fees. If you can find agents who offer properties at reduced fees, you can potentially save a lot on the purchase. The first and foremost worry for any 1st time home buyer is the property price. If you have noticed differences in property prices within the same location, you have cause for concern. The difference in price is not always due to varied amenities or quality of drainage. It has a lot to do with the fees charged by agents. If the agent charges higher fees to the seller, it is reflected in the price of the property. If you are listing with an agent, you will also be expected to pay the buyer’s commission (some agents may offer you part of this commission as buyer’s rebate).
Cost Reduction Options — MLS ListingsDon’t be misled by big promises. It can be difficult to select the right agent if you have no experience in the property market. Because this is your first home, you do not have ready cash from the sale of a previous property. Therefore, cost and agent skill are both factors to consider when looking for a home. Many property buyers get around the fee problem by looking up properties on sale and striking deals with home owners without going through an agent first. Find Expert Help At Low PricesThe problem with not hiring an agent is that you are deprived of their expertise. Negotiating with buyers, inspecting the property for flaws, and arriving at the actual value of the house as opposed to the advertised price can be difficult for the 1st time home buyer. Instead of eliminating the role of the agent from your transaction, look for an agent who offers discounts. No-frills selling is a popular concept these days. It allows the agent to accept flat-rate commissions (such as $3,300) for all types of properties regardless of their price. This works out much cheaper than percentage-based fee. One of the misconceptions that stops a 1st time home buyer from approaching agents who offer flat-fee based services is that such agents do not have the right skills or experience. While many inexperienced agents start out small, there are skilled agents with years of experience in the property market who offer flat-fee arrangements as part of their customer service. They may not always have the tag of a big-brand realtor attached to their portfolios, but they offer the right service at the right price. The bottom line is, if you can find a good house through a no-frills agent, why pay huge amounts toward percentage commissions? Many high-profile realtors have also started offering flat-fee-based services in addition to their regular services. This allows them to explore different types of property markets and reach out to more customers. Approaching a no-frills agent might therefore be a good decision on part of a 1st time home buyer. Ready to buy a home the right way? Let No Frills Real Estate help you make this important decision and save money at the same time. Sign up as an interested buyer today!
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