There are so many reasons to hire a real estate agent that it’s hard to list them all.   Most importantly is realizing how valuable your home is.  For most people, their home is the largest asset they have.  Why would you risk something so important to someone who is not a highly trained expert?  There are many pitfalls and challenges to buying your home and without proper training and experience, it could be the most costly mistake of your life.  Talk to your Maine Real Estate Pro for more details on why you should hire us! 

Commissions vary and are negotiable. 

Many economic factors will determine how much you will pay for your home.  Interestingly, the interest rate’s effect on your purchase is closely related to the current real estate market.  For example, if we are in a buyer’s market (supply of houses is high and you have lots of choices) house prices will be lower BUT your monthly payment will be higher.  This isn’t a bad thing because you’re actually buying the house for less money, so when you sell it, you’re more likely to make more on the sale.  The down side, of course, is that you will pay more interest, raising your monthly payment.  If we are in a seller’s market (very little inventory for you to chose from) you will pay more for the house and if the rates are high (like the market we are currently in), you will also pay more for your monthly payment.  Now, just because rates go down does not mean you will pay less for your home.  Let’s look at today’s market.  The rates are around 7% (as of August 27, 2024) and prices have been increasing steadily for the past several years.  Because of this combination of events, a lot of buyers have stopped looking for a house and decided to stay where they are until the rates or the prices come down.   Well, let’s say the rates come down to about 5% and buyers decide to start looking again.  Seems like a good thing, after all, a 2% rate drop on a $500,000 house can be as much as $600 difference per month so it’s a good time to go looking again, right?  Possibly… but probably not.  You see, when all of the people who stopped looking suddenly go out and start looking again, the supply will shrink and we will be in an even tighter inventory market than we already are, and by the “laws of supply and demand” the prices of the house will go up.  So, you see, if interest rates go down, it’s very likely prices will go up anyway.  

In Maine, the buyer agency relationship is an agreement between the buyer and the real estate office stating the agent is the agent for the buyer and will look out for the buyer’s best interest.  Everything the agent does needs to be to the benefit of the buyer (as long as it’s legal) and must even supersede their own best interest.  There are other types of agency in Maine, including a transaction broker, who is someone who doesn’t represent the buyer or the seller, they represent the transaction.  There is also dual agency, in which, the agent is splitting their loyalty and fiduciary duties between the buyer and seller.  You should always know exactly what type of agency relationship you are entering into and if the agent does not explain it in detail, ASK QUESTIONS and don’t sign anything until you are sure of the type of agency you’re entering into and make sure it works for you.