Should I Hire an Agent when Buying a House or Represent Myself Using Mako?

When it comes to buying a house, one of the biggest decisions you’ll face is whether to hire a real estate agent or represent yourself, with the self guided platform like Mako. Both options have their own set of advantages and drawbacks, and the right choice depends on your personal preferences, comfort level with the buying process, and the resources at your disposal. Let’s dive into the pros and cons of each option to help you make an informed decision.

Represent Myself Using Mako

Pros:

1. Save Large Commission Fees
   One of the most compelling reasons to represent yourself is the potential to save a significant amount of money. Traditional real estate agents typically charge a commission of around 3% of the sales price. By using Mako, you can avoid these hefty fees and retain more of your hard-earned money.
2. Make an Offer in Minutes, 24/7 with AI Guidance
   Mako’s AI-driven platform allows you to make an offer on a residential property at any time, day or night. This flexibility can be a huge advantage, especially in competitive markets where timing is critical.
3. Direct Communication with Listing Agent or Seller
   With Mako, you have the ability to communicate directly with the listing agent or seller. This can streamline the process, reduce misunderstandings, and speed up negotiations.
4. Streamlined and Transparent Terms
   Mako’s platform is designed to make the home-buying process as straightforward as possible. The terms are clear and transparent, ensuring you know exactly what you’re agreeing to at every step.
5. Instant and Secure Changes to the Deal During Negotiations
   Negotiations can be complex, but Mako allows for instant and secure changes to the deal. This real-time flexibility can be a significant advantage in ensuring your interests are protected. There is no need to wait for a PDF to be “scratched through” and initialed for changes upon each negotiation.
6. Privacy and Convenience to Offer on Your Own
   For those who value privacy and prefer to manage the process independently, Mako provides the tools to do so with ease. You can make offers and negotiate terms without involving third parties.

Cons:

1. Pay Small Fee Per Offer Instead of Offering for “Free”
   While you save on large commission fees, Mako does charge a small fee per offer. This can add up if you’re making multiple offers, but it’s still likely to be significantly less than a traditional agent’s commission.
2. Tour Properties at Open Houses, with the Listing Agent, or Virtually
   Without a buyer’s agent, you’ll need to arrange property tours on your own. This might mean attending open houses, coordinating with the listing agent, or relying on virtual tours.
3. Schedule Onsite Vendors Such as an Inspector During Escrow Period
   When representing yourself, you’ll need to manage the logistics of the escrow period, including scheduling inspections and other necessary services.
4. Understand and Learn Industry Terms
   The real estate industry has its own jargon, and you’ll need to familiarize yourself with these terms to navigate the process effectively.
5. Review Seller Documents on Your Own, Such as Disclosures
   Without an agent, you’ll be responsible for reviewing all documents provided by the seller, including disclosures. It’s crucial to thoroughly understand these documents to avoid potential pitfalls.
6. Access to Sold Comps for Offering Price
   Determining the right offer price can be challenging without access to recent sales data (comps). There are many free online sources such as Zillow, Redfin, Realtor.com that provide verified sales, but you’ll need to analyze it yourself.

Hire a Buyer’s Agent

Pros:

1. Negotiation Expertise
   Real estate agents can be skilled negotiators who can advocate on your behalf. Their experience can add a boost to the deal, especially in complex negotiations.
2. Delegate Tasks and Timelines for Your Agent to Handle
   Hiring an agent allows you to delegate many of the time-consuming tasks involved in buying a home, such as scheduling inspections and coordinating with the seller’s agent.
3. Coordinate Unlimited, Free Home Tours in Person with Your Agent
   Agents can arrange for you to tour multiple properties, often at times that are convenient for you. This service is typically included in their commission.
4. Local Insights That May Not Be Available Online or in a Disclosure
   Experienced agents often have deep knowledge of the local market, including insights that may not be readily available online or disclosed by the seller. This information can help you make a more informed decision.
5. Emotional Filter with Professional Experience to Close the Deal
   Buying a home is an emotional process, and having an agent can provide a buffer between you and the seller. They can offer objective advice and keep the process on track.
6. Access to Private Listings and Sales Comps
   Agents often have access to private listings that aren’t available to the general public, as well as detailed sales data that can help you make a competitive offer.

Cons:

1. Pay Large Commission Fees (e.g., 3% of Sales Price)
   The most significant downside of hiring an agent is the cost. A 3% commission on the sales price can add up to a substantial amount, especially in high-priced markets. Due to recent commission lawsuits, Buyers may have to pay their Buyer agent out of their own pocket, instead of the Listing Agent or Seller paying the commission.
2. Human Error with Contracts
   While agents are professionals, they are still human and can make mistakes. Errors in contracts or paperwork can cause delays or complications in the buying process.
3. Communication Gap
   Sometimes, there may be a communication gap between you and your agent, leading to misunderstandings or delays. Given there could be a Seller, Listing Agent, Buyer Agent, Title Company, Mortgage Lender and other parties in the transaction, there is a lot of room for miscommunication.
4. Time Delay on Negotiations
   Negotiations can take longer when an agent is involved, as they must relay offers and counteroffers between you and the seller’s agent. This can be frustrating in a fast-moving market.
5. Talk to Your Agent Every Time You Need Something
   While having an agent can be convenient, it also means that you’ll need to go through them for most aspects of the process. This can slow things down if your agent is busy or unavailable.
6. Trust with Fiduciary Responsibilities
   When hiring an agent, you’re placing a significant amount of trust in them to act in your best interest. While most agents are trustworthy, it’s still a consideration that shouldn’t be overlooked.

Conclusion

Deciding whether to hire an agent or represent yourself using Mako ultimately depends on your personal preferences, budget, and comfort level with the home-buying process. If you’re looking to save money and are confident in your ability to manage the process, Mako offers a modern, tech-driven approach. However, if you value in-person expertise and prefer to have someone handle the details for you, hiring an agent may be the better choice.

Homebuyers in Texas can write their own offer contract with AI guidance with Mako Contracts. You can get started for free, before hiring a Buyer agent to see if it is a good fit for you!