"If I buy a house directly from the owner, I will save on the cost of the house, right??"

The cost of a house has nothing to do with who is involved with the buying or selling process. Housing prices are determined by only two factors, the supply of houses on the market and the demand for those houses. The concept of supply and demand sets the price of all goods and services not just homes.

We have all watched the Antique Roadshow on T.V. and witnessed a 200 year old chair get valued at $3000. Have you ever wondered why? The answer is simple, that chair is a one of a kind item; therefore, in order to own the chair you must pay a certain price. The price of the chair has nothing to do with the buyer or the seller.

What most people forget is that when the owner attempts to sell the chair, they may enlist the services of professionals to find buyers for the chair. The price of the chair doesn’t change, because the owner has hired professionals to help sell the chair!

In most real estate transactions the seller / homeowner may hire a real estate agent to help them sell there home. As a result of the homeowner hiring a Real Estate Agent, the homeowner pays for those services and the value of the home does not change.

If you are in the market to buy a home you should always use a professional to help you with the purchase of your home. The Real Estate Agent that you choose also known a as buyers agent in most cases does not directly cost you any money. They will help make sure that the price of the home you want to buy a priced correctly. Many owners who sell there home tend to inflate the price of there home due to incorrect information they obtain from the internet or because of emotional ties to the house. In most cases when a Real Estate agent is NOT involved in the sale of the home, buyers tend to pay more money for the exact same home.

Authors Bio
James Smith is a Real Estate Broker with Keller-Williams Realty in Charlotte N.C. and holds a MBA degree and several Real Estate Designations and was recently awarded the 2008: Realtor Client Satisfaction award and is in the top 5% of all agents. James works with first time buyers, sellers, and move-up and relocation clients. James can be reached at 704-688-0436 or http://www.BestCarolinaHousing.com