Purchasing a home can be costly. However, some novice buyers are shocked to discover that they need money for a down payment, and funds for closing costs. Closing costs include fees for everything from credit reports to prepaid homeowner's insurance premiums to broker expenses, and this total can easily reach tens of thousands of dollars. Fortunately, an agent can help you negotiate these fees.
Seller Cost Share
There are seller's markets, but there are also buyer's markets. If you live in the latter, your agent may be able to negotiate to have the seller pay a portion of your closing costs. Depending on the market, this portion can even reach a 100% share. Even if the seller will not cover all of the cost, even a smaller share can save you thousands of dollars in the long run.
Before closing, your lender will provide you with a closing disclosure estimate, which is an itemized record of your total closing costs. Sometimes there are mistakes on these forms, such as charging a fee more than once. If you have an agent, you can ask them to look over the sheet to spot any mistakes you may overlook. This will help ensure that you are agreeing to pay the correct amount and that all details of the closing cost are accurate.
Every lender has required fees and a group of fees that are shoppable. Shoppable fees are for services that you have the legal right to shop around for, such as a home inspection. Real estate agents have large networking pools, which often include many of these professionals. An agent can look over the outlined costs for the shoppable services that have been provided by the lender to help you determine if there is a more cost-effective option.
If your plans involve building a home, an agent can still help you save in this area. When a builder is not able to meet the client's need, such as not being able to deliver on a custom selection the buyer chose, like cabinets, or when the builder falls behind schedule, they will sometimes compensate the seller. An agent can help translate this compensation into closing cost credits that help lower your share.
A real estate agent can save you money on many fronts. If you are looking to purchase a home, make sure you do not underestimate the benefit of partnering with a real estate agent.