If ever for some reason you want to get your dream house without a realtor nor a real estate agent to help you with the home buying process, the purchase and sale agreement endeavors, home inspection, or even during the real estate transaction but are afraid to do so because you might miss some legal aspects to take note of, miss what is currently new and hot market, and you do not want to get overwhelmed with all the paperwork that comes with the home buying process, do not fret because it is indeed possible to go house hunting amongst all the houses in the Philippines and get the best out of the real estate market without a realtor.
What to Know About a Buyer’s Agent
In the Philippines, real estate realtors are professionals who assist individuals in finding, buying, selling, and renting houses in the Philippines. They are required to pass an exam and meet certain educational requirements to obtain their license.
Realtors work closely with clients to understand their needs and preferences and help them find properties that meet their criteria. They also provide guidance to clients who are selling their properties, including pricing strategies and negotiation tactics.
In addition to these services, realtors may also offer property management, market analysis, and legal advice. They have in-depth knowledge of the local real estate market, including trends, prices, and regulations.
Realtors in the Philippines earn a commission on the sale or rental of a property, which is usually split between the seller’s agent and the buyer’s agent. Needless to say, they play a crucial role in helping individuals navigate the complexities of the real estate market and houses in the Philippines.
The Differences Between a Real Estate Agent and a Realtor
Now, you might get confused between a real estate agent to a realtor. After all, in buying and selling houses in the Philippines, the two jobs are quite similar. But there are indeed some distinct differences that you must take note of.
A real estate agent is a licensed professional who helps clients buy, sell, and rent properties. They may work independently or for a brokerage firm and must meet certain licensing requirements in their state or country.
On the contrary, a realtor is a real estate agent who is also a member of the National Association of Realtors (NAR), a professional organization for real estate agents. In order to be part of this executive organization, an agent must agree to adhere to a strict code of ethics and standards of practice outlined by the NAR.
To put it simply, all realtors are real estate agents, but not all real estate agents are realtors. Realtors are held to a higher standard of ethical behavior and professionalism than real non-members of the NAR.
Additionally, you should take note that the word “realtor” is trademarked by the NAR and can only be used by members who have earned the designation. However, the term “real estate agent” is a more general term that can be used by anyone who is licensed to help clients buy, sell, and rent properties.
The Cons of Working With a Realtor
Now, there are some reasons why you may have opted to go through your home-buying process without a realtor nor a real estate agent, or even a real estate lawyer. And in a handful of ways, it is quite understandable. You may have taken note of the real estate agent’s commission which many people who have market knowledge have. In order words, the listing agent, even though they are a very experienced agent who knows a lot about the mortgage basics that ultimately made him a successful experienced lawyer or agent, may be biased. Many companies take part in the buyer’s agent’s commission, thus, the buyer’s agents will most certainly gear their clients to the company they work for rather than helping the buyer to find the perfect home that suits their wants and needs. Rather than guiding them through to attend open houses, going through a thorough online search to meet the homebuyer’s needs, or even going out of their way to get the best interest rate or asking price for their customers, they do not in order to benefit the company they are working for. Understandably, most would like to avoid such bias especially when it comes to something as special (and pricey) as buying a dream house.
So, the next question is, how to buy a house without a realtor?
How to Buy a House Without a Realtor
1. Know the Ins and Outs of Real Estate.
If you do not want to hire a realtor, then you have to be some kind of realtor yourself. You have to do thorough research and study when it comes to the real estate industry, especially about houses in the Philippines. Research online, talk to actual real estate agents or an experienced lawyer, jot down a lot of loans, and if you plan to apply for a mortgage or loan, interview various banks to get the best offer in the future. Ultimately, go to the different communities you eye living in and interview the residents there if they are indeed satisfied with the place they are living in.
Another practical tip in this aspect is to list down all of your wants and needs while considering factors such as school district, property taxes, community resources, and commute time so that when you are scouting different neighborhoods you can compare if they truly suit you or not.
2. Professionally Inspect the Property
Do not fret, a home inspector is different from a real estate agent. A home inspector’s job is to examine the condition and safety of a piece of real estate. It is a third party whose job is to see if there is any hidden agenda in and outside of the house you are eyeing. If issues come up and you have a home inspection contingency, you can back out of the deal, have the issues corrected by the seller, or request compensation.
Indeed, going through your home purchase journey without a realtor is quite daunting but whether your reason for this is to secure financing, save money, or ensure that you and/or your family get the house with the perfect home’s purchase price, you can totally take this valid final walk through easily just as long you have the patience and diligence to learn the ropes of the real estate industry.
Read more: Benefits of Hiring a Realtor
