The Mortgage Reports Blog

Stop Asking Your Real Estate Agent If "Now Is A Good Time To Buy"

For Americans wanting to buy a new home, there are always two time frames to consider:

1. Now
2. Later

It's why prospective home buyers love to ask the question: "Is now a good time to buy?"  If now is not a good time, they reason, certainly later must be.

Strangely, though, "Is now a good time to buy?" is a question that people ask their real estate agent but never their mortgage guy. 

It's probably a good thing, too, because loan officers have seen a lot of changes over the last few months and we're expecting a lot more this year.

But it's okay.  You can ask me now: "Is now a good time to buy?"

If Sellers Pay The Buyer's Real Estate Agent's Commissions, Why Don't All Buyers Use Real Estate Agents?

Attention home buyers: you don't pay for your real estate agent.  Real estate agents are free to you.

Many homebuyers -- and not just first-timers -- are not aware of this.  Sometimes, not wanting to "pay a commission" is the reason why home buyers don't hire real estate agents. 

This can be costly.  Quality real estate agents represent expert, free advice. There is almost no reason to represent yourself in the purchase of home.

Even For Sale By Owner (FSBO) homes will often allow a propsective buyer to use an agent.  Homebuyers don't often know that because it is not usually advertised.

Why use a real estate agent? Choose from any of these convincing arguments:

1. Real estate agents are professionals in identifying which homes are over-priced and which homes are under-priced.  As a non-real estate professional, you are not as equipped to provide the same objective and sound analysis that a real estate is.
2. There are many legal implications in buying a home. Real estate agents can provide a strong roadmap for you, and recommend an experienced attorney to help if it's required.
3. Real estate agents manage the sales transaction which means you won't have to. There is a (seemingly endless) lists of chores to handle in buying a home and you likely won't have the time to handle it all yoruself. A real estate agent is your Quarterback -- you only need to run your route. Tremendous time savings here, folks.
4. To reiterate, real estate agents are free to the homebuyer. The seller pays the commissions for both agents.

So, to sum up: real estate agents are experienced professionals who can connect you with other experienced professionals as they manage -- at no cost to you -- the day-to-day events which lead to your closing date.