Buying a house is a major undertaking. It’s one of the most complex financial transactions you can ever go through, not to mention the most stressful. It’s vital that you have your wits about you, know all your options and budget everything correctly. There are two prevailing thoughts that fuel house buying budgeting. Some say you should go the traditional route, hire a real estate agent, do the viewings yourself, and negotiate the price through the agent. Others say you should go the modern route, speak with an advisor, a realtor and negotiate the price yourself. Each has their draws and drawbacks, so let’s take a look at which is better when buying a home: traditional or modern route?
What could an advisor do?
Financial advisors are tasked with giving you the correct information about your financial options regarding financing your home using your old home. They will give you information about how much the property might be worth, how much the new home could set you back by and what you need to do regarding your future plans for the new home. The new home might sell for $300,000, but the landscaping, upkeep and seasonal troubles could cost you $5-10,000 a year to maintain. The advisor will inform you of the costs in advance so that you don’t have to rely on the seller’s information. If a seller says the garage needs to be renovated but will cost $5,000, the financial advisor will investigate the cost of materials, labor and overall project cost to see if this is true.
What good would a realtor be?
A realtor is preferably someone who is a local to the area of the home you are selling. They will be in touch with the housing market of the neighborhood, city, or state. In other words, they will know the true price of a home and tell you when you’re being taken advantage of. They will also deliver premium marketing, so your home is more likely to reach the type of buyer you want to work with. For this, a flat fee realtor will give you a comprehensive MLS listing, home prep and staging advice, a better sales strategy for the local market and an online home showing scheduler for virtual viewings.
Real estate agent
An agent works for a firm and so, your home will not be given sole attention. It’s vital you know this, as they will not always be ready to give viewings when you are. In a sense, the sale of your home runs on their time and their marketing focus. However, they usually do not charge you, unless they make a sale. They do ask that you do not market your home anywhere else while they have an exclusive contract with you. This may be for a few months before you can choose to continue with them or leave.
The modern route is great if you find a good realtor who knows what they are doing. You have more control and a better chance of finding the right buyer. However, advisors and agents provide a good solid base which takes a lot of worry away, if you can be patient. So, which is better when buying a home: traditional or modern route? You will need to decide for yourself.
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