Can Anyone Buy and Sell a House? |
Posted: March 20, 2018 |
This is a popular topic and one in which many homeowners consider before turning to a real estate agent. "Can I sell my home myself or do I need to be a licensed real estate agent?" The same goes for buyers; do need a real estate agent in order to buy property or can you just find someone that wants to sell and buy it? The short answer is yes to both questions. Anyone can buy and sell real estate. No one has to be licensed in order to do so, however, if you're going to buy and sell property for other people you need to be licensed. The general public cannot facilitate a real estate transaction between two people they are not involved in work a transaction they are not personally involved in. So, that being said, navigating a real estate purchase is very tricky. This is why we have real estate agents to help facilitate these transactions that are so complicated and change every year. Tax codes change, rules change, and the primary reason you want a real estate agent is to protect yourself. These agents have to engage in continuing education, which means that they are constantly updating themselves and keeping themselves abreast of the latest rules and regulations. Every state, county, and even city may have their own regulations when it comes to purchasing real estate. If you've ever bought a car, you realize how much paperwork is involved in financing. Now quadruple that when it comes to buying property. If someone is just handing over $200,000 in exchange for property, it seems like a simple transaction, however, most of the time that is not the case. Buyers usually need a mortgage, in which case there is escrow involved, lenders, appraisers, title, and inspections. All of these other parties help protect not only the buyer but the seller as well. Buyers need to know that the seller has legal right to sell the property and this is why we purchase title insurance. Real estate agents will make sure that their buyers are covered in a selling agent will make sure the homeowner is protected as well. So many people want to take out real estate agents altogether to save themselves a buck or two, but the reality is there are so many other legalities that can go wrong exposing the buyer or the seller to lawsuits and other issues that a few thousand dollars paid towards an agent to protect their buyer or their seller is really worth it. When I was a real estate agent I had a buyer who found a home that was being sold from the homeowner directly. There was no listing agent involved. I approach the homeowner and said I would be happy to facilitate this transaction for a small percentage of commission when it's all said and done. Because the homeowner literally had no idea how to sell a house, how to accept an offer, how to open escrow and all of the thousand details that come along with it, they were grateful for the knowledge and experience I had. They ended up paying me a buyers agent commission even though I technically facilitated the transaction for both the seller and the buyer. Read More Great Advice From Buyers and Agents When one agent does both sides of the transaction is called dual agency and this is a very muddy place to be. Agents may try to take all the commission since they are not only the buyers agent but the listing agent as well. The commission typically gets split in half so when an agent is doing both sides of the deal, naturally they will receive full commission. But, who is the agent really working for? A lot of times agents will start with the seller and then bring in a buyer and naturally have to tell the buyer that they began working with the seller first, where their original loyalty lies. That doesn't put too much protection on the buyer. Related: What about weighing the choice of selling vs. renting your home? Trust me, after being in the real estate world for just a few years it is crucial to have a real estate agent facilitate the transaction whether you are a buyer or a seller. There are just too many things you could mess up, lawsuits could ensue, and buyers and sellers could lose out on money. Having someone on your side to protect you throughout the entire transaction is essential and totally invaluable. So yes, you can do it yourself, but I would strongly advise against it.
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