5 things to consider before jumping the real estate agent, Lifestyle News

Although it is common to hire a licensed agent for your real estate transactions, it is technically not a requirement in Singapore.

In fact, there’s a growing number of savvy homeowners who have taken the less traveled DIY route, and there’s nothing wrong with that.

So is a real estate agent really necessary? Actually it depends. Although buying, selling or renting a property may seem quite simple, there are a lot of things that go on behind the scenes to achieve a successful transaction. So consider these five things before you go DIY or hire the services of an experienced real estate agent with the necessary knowledge and experience.

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From doing your own research, listing your own property, and arranging viewings, the whole process can take an awful lot of time, and we haven’t even reached the mind-boggling amount of paperwork involved. .

So if you’re considering skipping the agent, consider the time and amount of liaison and coordination required for the whole process – it will take at least almost six months to complete.

2. Understand the market

Beyond saying “yes” to the right price or the right house, there is a lot of market research. How well do you understand pricing and market sentiment today, and specifically for the area or project you are interested in? Although you can browse online property portals and search for information online, it is certainly not easy to understand everything.

A knowledgeable realtor, on the other hand, can help you paint a clearer picture, dispel any doubts, and help you make an informed decision based on historical data, trends, and more.

And if you’re a buyer, you can even get insider information from your agent about upcoming developments not yet known to the general public.

3. Calendar planning

For most owners, it is common to dispose of their current property before or after buying a new one.

However, planning the timeline isn’t as easy as it sounds, especially if the other party has requested extensions or the loans weren’t approved in time for the deal to close.

And if things were to go wrong, you could very well find yourself in limbo with no place to stay for weeks or even months. For independent buyers or sellers, this is a tightrope that you will need to balance carefully.

4. Paperwork

Needless to say, there is a lot of paperwork involved, from the option to purchase to the transfer of ownership fees and more. If you’re considering DIY, you’ll want to familiarize yourself with the specialist laws and regulations, as well as what should and shouldn’t be included in relevant contracts and agreements.

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Many tenants, for example, are often bullied because they did not know what they had to pay attention to in their contract with the landlord.

If you hire a real estate agent, on the other hand, they can guide you through the process and explain in detail the clauses of each document. After all, you will want to understand why you are signing on the dotted line.

5. Funding

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Have you thought about how you will finance your next purchase? For example, will you take out an HDB or bank loan, or use funds from your Central Provident Funds (CPF) account? Or would you need approval in principle from the banks before making your purchase? If you got it all figured out, good for you.

If not, an agent will be able to point you in the right direction and help you with financial planning – especially for less straightforward cases.

For example, should you flush out funds from your CPF account entirely to reduce the loan amount? Or if you have taken out an HDB loan, would it make financial sense to take out another one?

READ ALSO: 5 Things Real Estate Agents Are Not Required To Do (But Could Still Do)

This article first appeared in Wonderwall.sg.

Penny D. Jackson