A good agent guides you through the entire homebuying process, from applying for a mortgage to the closing. Want more details? Here\u2019s the nitty-gritty of what a real estate agent does for you.<\/p>\n Most agents recommend that you get preapproved<\/a> before home shopping. This preapproval letter helps you set your budget, and if you do find a great home, you\u2019re ready to write an offer immediately.<\/p>\n A mortgage broker<\/a> can help you shop around for loans, and a loan originator at a bank can guide you through the preapproval process. But agents know many brokers and loan officers, and they can put you in touch with the right person.<\/p>\n Like many agents, Ane\u2019 McGreevy has longstanding, strong relationships with lenders she prefers. \u201cWhen my buyers are in their hands, I feel very confident. They stay in touch with my client and explain, all the way through the process, what happens next,\u201d she says.<\/p>\n Working with someone who your agent knows keeps communication open and flowing, preventing any last-minute surprises at closing.<\/p>\n If you\u2019re struggling to save for a down payment<\/a>, or don\u2019t have 20% yet, you can still buy a house. Loan programs exist where you can put down just 5%, or even avoid a down payment altogether (such as a USDA loan<\/a>). But it can be confusing to navigate various government websites.<\/p>\n Ask your agent about programs or loan types that aren\u2019t on your radar. Many states have first-time home buyer programs<\/a>, and other buyers could qualify for down payment grants<\/a> even if it\u2019s not their first home purchase<\/a>.<\/p>\n When you first start working with an agent, you\u2019ll tell them where you want to live and what you\u2019re looking for in a house. After listening to your wants and needs, they could bring to your attention a neighborhood that\u2019s a hidden gem, one may offer a better deal or have less competition. Over time, expanding your search area could yield great fruit.<\/p>\n And an agent can do more than access the MLS<\/a> to find you homes. By working their network, they find out about pending listings from other agents in their office or from their own sellers. Their in-depth market knowledge and contacts work for you, helping you get the jump on other buyers<\/a>.<\/p>\n During the pandemic, and if you\u2019re relocating, they can also scout homes in-person so you don\u2019t waste your time. You\u2019ll want to limit the number of homes you visit, or you may have to buy sight unseen. As they get to know you and what you\u2019re looking for in a home, they can be your advance scouting expedition.<\/p>\n Roddy Barnes is a homebuyer who worked with Ane\u2019 McGreevy during his recent home hunt. He and his wife started out looking on their own, but they quickly turned to her for help. \u201cShe knows where you\u2019re at, and knows how to make that market real for you,\u201d he says.<\/p>\n \u201cIf I\u2019d still been looking on my own, there are houses she showed us that I would never have looked at,\u201d he would have assumed they were never going to work and missed out on some great opportunities.<\/p>\n When a house goes on the market, it\u2019s listed on multiple listing services (MLSs). These services pull its data into various websites and make it searchable. But do you know what all those terms mean?<\/p>\n An agent can break down the components of a listing, not just explaining what \u201cdays on market\u201d means but also what it signifies about a house. In a hot market, a house that\u2019s been on the market over 90 days could have an issue. If the listing says \u201csold as is,\u201d the house could need repairs. When you see a high-square-footage number, does it include the basement<\/a>?<\/p>\n Reading the MLS listing is the first step, and interpreting it is the next. Your agent knows how to look at the data and tell you what it\u2019s really <\/i>saying.<\/p>\n You\u2019ve had a new baby and can\u2019t wait to get out of your two-bedroom condo. That three-bedroom bungalow looks like a good fit, but it\u2019s not in a neighborhood with great schools. An agent evaluates potential homes for both now and in the future.<\/p>\n Your family\u2019s needs will change over time. If you\u2019re planning on having more kids, you could soon outgrow that bungalow. You\u2019ll want to think ahead to kindergarten when deciding which school district to live in, or your dog may need a larger backyard.<\/p>\n In your eagerness to become a homeowner now you may neglect to think about five to ten years down the road. But there are costs involved in selling a home and moving. A good agent can reign in your enthusiasm and help you look at the big picture.<\/p>\n Some homebuyers have specialized needs that go beyond \u201cthree bedroom, two bath.\u201d You may have a disabled family member who needs a bedroom and bathroom on the main floor. Parents working from home might want their own office and a finished basement where the kids can play.<\/p>\n If you need features in your new home that you can\u2019t find using a filter in the MLS, an agent can help you locate them. Barnes wasn\u2019t keen on moving, it was his wife\u2019s idea, so he told her that he\u2019d only move if they could find a house with sellers who could be flexible on the price \u2014 hard to do in their market.<\/p>\n \u201cThe biggest thing for me,\u201d he says, \u201cwas not getting upside-down buying in a high market.\u201d<\/p>\n Ane\u2019 McGreevy hit and surpassed this and his other benchmarks.<\/p>\n In high-demand areas, agents often send letters to the current owners to find new listings or potential sellers. They could have someone in their database they could call who indicated that they didn\u2019t want to sell two years ago, but were thinking about it in the future. Now could be the time.<\/p>\n You may love the house with the dormers and wrap-around front porch, but is it really worth $650,000 where you live?<\/p>\n Even if you\u2019ve found the perfect home, you don\u2019t want to overpay for it. And offering too much could cause issues with the appraisal<\/a> and mortgage down the road.<\/p>\n An agent can prepare a comparative market analysis<\/a> for the home (or homes) you want to buy, pulling information from recent sales in the area. When comparing houses, they\u2019ll help you evaluate variables like price per square foot<\/a>, number of bathrooms, and garage spaces, all of which could make one home worth more than another.<\/p>\n In a hot seller\u2019s market<\/a>, you might not have time for a full comparative market analysis. That\u2019s when an agent\u2019s in-depth market knowledge comes into play. They\u2019ll have a good grasp on what homes in the area are worth from their own listings and sales. When you lean on their expertise, you\u2019ll know you\u2019re paying a fair price and making a strong offer.<\/p>\n Once you\u2019ve found your dream home, it can be heartbreaking if the seller rejects your offer <\/a>or chooses another buyer. You want to present the strongest offer you can.<\/p>\n From preapproval<\/a> to down payment amount<\/a> to earnest money, your agent will guide you to figuring out the best overall offer to present. They may call and talk to the seller\u2019s agent to determine what matters most to the seller. It\u2019s not always about money, sometimes the sellers need a flexible close date or shorter close.<\/p>\n If they\u2019re competing against another buyer, Ane\u2019 McGreevy has her buyers include escalation clauses in their offers. This clause will increase an offer above the highest and best offer that the sellers receive by anywhere from $500 to $2,500 in her market. \u201cThey can put a max on it,\u201d she reassures cautious buyers, \u201cwhich we do depending on where the client is financially.\u201d<\/p>\n When writing your offer<\/a>, your agent will help you identify what you can bring to the table that will give you the strongest advantage as a buyer in your market.<\/p>\n Are you willing to waive the inspection contingency, or would you rather commit to either buying the house or walking away if the inspector finds something serious? What about the time to close \u2014 do you have a strict date, or are you willing to leave it up to the seller?<\/p>\n Contingencies<\/a> are one area where you can offer the seller something that isn\u2019t related to price. By asking questions of both you and the seller\u2019s agent, your agent will know where you can tweak or eliminate contingencies to make both sides happy. They\u2019ll also explain the risks to waiving some contingencies and explain how they\u2019ll impact your purchase.<\/p>\n When you make an offer, and after it\u2019s accepted, you\u2019ll need to write an earnest money<\/a> check. This money goes in escrow until the house closes. Your agent will handle delivering the check to the listing agent.<\/p>\n If something goes wrong and the deal falls through, they\u2019ll advise you on your options and help you get the earnest money back<\/a>, if possible.<\/p>\n The home inspection<\/a> is one of the most important contingencies in your offer. If the home inspector finds a major issue, you might want to negotiate the home\u2019s price or get the seller to commit to have the work done before closing. In worst-case scenarios, buyers could choose to walk away from the purchase.<\/p>\n Even if you waive the inspection contingency, you should still have an inspection done. The home inspection can serve as a list of maintenance projects or upgrades the home needs in the first few years.<\/p>\n Most agents should be able to recommend a home inspector or two who\u2019s trustworthy and thorough. They\u2019ve read the reports of several home inspectors in your area and will have opinions about who does the best job. Their recommendation may be particularly important in states that don\u2019t require that home inspectors have a license<\/a>.<\/p>\n While the home inspection isn\u2019t necessarily meant to lead to more negotiations, it can if the home inspector finds something that would greatly reduce the home\u2019s perceived value. After all, any buyer would probably pay less for the house if they knew that it needed a new roof.<\/p>\n When Barnes finally found the right home, the home inspection revealed that the roof needed replacing. Barnes wanted a credit at close.<\/p>\n \u201cWe went back and forth for a while every single day on this roof credit,\u201d he says. They couldn\u2019t reach consensus on the total amount needed, or the roof\u2019s damage. Barnes thinks that, \u201cif I was by myself negotiating<\/a> at that point, I think I would have been taken advantage of,\u201d but Ane\u2019 McGreevy and her team eventually secured Barnes a $30,000 roof credit.<\/p>\n Most homebuyers don\u2019t have to negotiate regularly, especially at this price range, and haven\u2019t built strong negotiation skills. They also don\u2019t know what\u2019s negotiable, and where there can be give and take. An experienced agent is frequently engaged in negotiations and will use these skills on your behalf.<\/p>\n Depending on your home\u2019s age and the area of the country you live, you might want to test for other hazards.<\/p>\n Builders used lead paint and asbestos in homes built before the late 1970s. Mold might be found in homes located in a wet climate, and radon in others.<\/p>\n Experienced agents will know common hazards in your neighborhood and specific to the home\u2019s era<\/a>. They can recommend additional home inspections, such as radon testing, that you might want to have done as well as a regular home inspection.<\/p>\n If these inspections find issues that must be remediated, an agent can help you arrange for repairs, or negotiate with the seller to make them instead.<\/p>\n After an accepted offer the agent will handle communicating with the listing agent. The home inspector and appraiser may both need access to the house before closing. If you negotiate repairs, either you or your agent will want to verify that they\u2019ve been done. It\u2019s a good idea to do a final walkthrough<\/a> one to two days before close.<\/p>\n Your agent will arrange dates and times that the necessary people can get into your new home, as well as ensure that all paperwork has been signed and filed properly.<\/p>\n Whether your closing<\/a> happens in-person or remotely, you might have some questions about all that paperwork you\u2019re signing.<\/p>\n Your agent may be in the room with you, or available by phone, to answer your questions. They\u2019ll review the paperwork beforehand to check its accuracy and find any errors.<\/p>\n If you need a place to stay temporarily \u2014 either while the sellers move out, or while your house is being built, or due to some other reason \u2014 agents can be great sources to help you find short-term or long-term rental housing<\/a> that works for your household.<\/p>\n They may know a seller whose house has been sitting on the market and who\u2019s now willing to consider a short-term rental. They could recommend the best extended stay hotel in your area. If you\u2019re relocating<\/a> and unfamiliar with your new city, this advice can be invaluable.<\/p>\n![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/02\/what-can-a-real-estate-agent-do-agent-666x381.png\")
<\/a>What can a real estate agent do for you?<\/h2>\n
An agent can help you navigate the mortgage process<\/h3>\n
An agent can help you find programs to afford a house<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/02\/what-can-a-real-estate-agent-do-property-666x381.png\")
<\/a>An agent can show you areas and homes that are great for you \u2014 but you didn\u2019t know existed<\/h3>\n
An agent can explain a MLS listing<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/02\/what-can-a-real-estate-agent-do-consult-666x381.png\")
<\/a>An agent can help you evaluate a house<\/h3>\n
An agent can help you find homes for your special needs<\/h3>\n
An agent can reach out to homeowners on your behalf<\/h3>\n
An agent can give you feedback on price<\/h3>\n
![\"Cash](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/02\/what-can-a-real-estate-agent-do-cash-666x381.png\")
<\/a>An agent can help you present yourself as a strong buyer<\/h3>\n
An agent can help you negotiate contingencies and sweeten the deal<\/h3>\n
An agent will handle the earnest money and escrow<\/h3>\n
An agent can help you find an inspector<\/h3>\n
An agent can negotiate after the home inspection<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/02\/what-can-a-real-estate-agent-do-inspect-666x381.png\")
<\/a>An agent can recommend additional inspections\u2026<\/h3>\n
An agent can communicate with the listing agent for you<\/h3>\n
An agent can hold your hand through closing<\/h3>\n
An agent can help you rent a house<\/h3>\n
![\"A](\"https:\/\/www.homelight.com\/blog\/wp-content\/uploads\/2021\/02\/what-can-a-real-estate-agent-do-key-666x381.png\")
<\/a>An agent might be able to help you manage a property you own<\/h3>\n