How to Save Money Using a Realtor

In the real estate game, many homeowners choose the For Sale By Owner route, thinking that this will save them tons of money by cutting out the Realtors. This approach often backfires as their home continues to sit on the market. There are advantages to having the experts working for you, so read on to find out how you can save money by using a Realtor.

Difficulty: Moderate

Instructions

1. Search for your new home. You don't have to pay any fees but gain all the advantages as your Realtor finds out exactly what type of home you want, the neighborhood and schools, using this information to access Multiple Listing Services. You let the Realtor do the work while you tour the homes, which saves you valuable time and money.

2. Pay the fair market price. When you're ready to make your offer, the Realtor will use his resources to search the comparable listings in the area so that you don't overpay. He'll find out what homes similar to the one you want have sold for in the area, at what price and how long they sat on the market.

3. Use a Realtor's connections to sell your home. Even if it seems as if you're in a seller's market, you'll save money by using a Realtor because your home will sell faster. Only Realtors have access to the MLS, so your home will benefit from mass exposure to home buyers and other Realtors.

4. Know that your time means money. In addition to the MLS, the Realtor's commission buys you advertising, open houses and showings. If you sell on your own, you're responsible for getting it done yourself, having to take time out of your life and money out of your pocket.

5. Leave the showings to your Realtor. If you insist on selling your home on your own, be aware that your house won't get as much traffic. Someone needs to be there to let potential buyers in, so either your house will take longer to sell because you can only show at certain times, or you'll have to miss work to let them in.

6. Rely on a Realtor's objectivity. When you're buying a new home, your emotions are on overload and common sense often takes a back seat to a beautiful fireplace, a backyard pool oasis or a luxurious master bath. Your Realtor isn't emotionally invested in this property and can point out potential pitfalls you may be overlooking.

7. Use a Realtor's knowledge and connections. When you buy your home, you'll need an attorney, mortgage broker and home inspector. Your Realtor can save you money by giving you competent referrals and letting you know how much you should be paying for these services.

Tips & Warnings

• Remember that even though your Realtor is a licensed professional, ultimately the decision is yours, along with your mortgage.