Do I even need a real estate agent to buy a house?

No. You don’t. There is no rule or regulation that says you must have a real estate agent when buying. But there really isn’t much of a downside to having an agent, assuming that person is honest, knowledgeable, has your best interests in mind, and is way cool.

Like, say, me.

The truth is, a real estate agent, and a Realtor® (what’s the diff?) particularly, should help you make what is essentially a gratifying/thrilling/terrifying experience as smooth as possible. Kind of like having a doctor help with childbirth. You could do it yourself, but then you’d have clean up after yourself, and those meds sure can be nice.

Some people feel they’ll get a better deal if they call the agent who is listed on a “for sale” sign. Maybe. Probably not. The deal is made between you and the seller, not you and the listing agent. Besides, by definition, the listing agent’s duty is to help get the best price and terms for the seller, not whoever just called in out of the blue. (There’s a lot of information on “agency”. Not complicated, but what every consumer should know)

How much does it cost to work with an agent when buying a house? Nothing. The agent who represents the buyer is paid when the listing agent shares the commission to the their company by the seller. (OK, so technically, the commission paid to the listing company comes from the proceeds the seller receives at closing. And the proceeds come from the purchase price. And the buyer is paying the purchase price. But the seller is paying the commission, not the buyer…)

What does the agent provide to the buyer that they can’t easily get on their own? Lots of stuff:

• Access to the listings, usually through the Multiple Listing Service (MLS) which only agents have
• Ongoing knowledge about what’s going on in regards to roads, development, where the sewage treatment plant is going to be built
• Experience pointing out features that are either red flags or bonuses that the buyer may not see immediately. Let’s face it, the agent doesn’t need to tell you if the kitchen has white or brown cabinets, but maybe you won’t notice immediately that the garage is on the other side of the house and you’ll have to lug all your groceries a hundred feet when you come home. A small thing, but it’s something that may eventually drive you crazy)
• Keeping an arm’s length in negotiations. Under the best of circumstances, the parties in a real estate transaction can be stressed - buyers and sellers. Nice people don’t always seem so nice when they’re having a nervous breakdown. The agents need to help calm prevail.
• Information. Sales figures. Area values. Zillow and similar sites are cool, but their information on values is often sorely out of date and doesn’t take into account intangibles.

There are lots of other reasons to get some help in the process of buying. The bottom line is that it doesn’t cost anything to talk to someone and find out what they have to offer you. If you don’t like the answers or don’t click, shake hands and move on. But if you do like what you hear, go for it.

And did I mention that I’m way cool? (click!)