Despite the ease of access created by the internet, buying a home is still a complicated process. You need third part assistance when making this very important financial transaction. Navigating the complexities of home buying or selling can be especially tough if you're going at it for the first time. While we do not dispute the fact that you can buy or sell your home yourself. Facts reveal that buying or selling a home through a real estate agent would net you more money.

For sellers, 4% of the sales price is charged for real estate agent services. This might be thousands of dollars that you would otherwise count as profit. Statistics however reveal that going it alone can cost you more in profits. The average FSBO seller makes $40,000 lesser in profit than an agent-assisted seller.

When you hire an agent, you're paying for expertise and information. Real estate agents have an exclusive database, the Multiple Listing service (MLS), which shows them how the prices of properties have changed over time. As a buyer, you might be paying more for a house that you feel attracted to. Without an agent, you might be buying a house that will turn out to be a money pit and paying more than you should for it. Experience, access to the MLS, knowledge of the marketplace makes agents invaluable to new buyers and sellers. Still not convinced? Look at these 3 ways buying or selling real estate on your own will cost you more.

1. Shortened range. If you’re going on your own as a seller, buyers with agents might not want to work with you, which limits your reach. Having a real estate agent creates a sense of convenience. The real estate agent's job is to act as liaison between the seller and the buyer. When one party has an agent, the other does not, the party with extra help has the upper hand, since the agent is working in his or her best interest. Also, buyers looking for homes will have a shortened range. Apart from the MLS access, an agent has connections with other agents and can easily match home buyers with a wide range of houses that meet their tastes. A real estate agent will track down homes that meet your criteria; get in touch with seller's agents in charge and make appointments for you to view the homes. You have to play this tag yourself if you're buying on your own.

2. Slip ups. An agent's job sells or buys houses full time. A seller looking to sell on his own probably has a job and cannot be 100% committed to the business of home selling, which does require much work. You have to answer calls from interested parties, answer questions and make appointments. There could be occasional slip ups, which will cost you money. Note that potential buyers are likely to move on if you tend to be busy or don't respond quickly enough.

3. Tricky negotiations. Buyers and sellers do not always have an easy relationship as each is looking for their own best interests. As a buyer, you might not know how well to express the fact that you find the wood-paneled walls and shag carpet contemptible. Your real estate agent can express your concerns to the seller's agent. Acting as a messenger, he would likely be in a better position to negotiate a discount without ruffling the homeowner's feathers.

Buying or selling a home is not a straightforward task, buyers and sellers want to niggle about price, contracts are hard to handle, mortgage issues might crop up. A professional real estate agent can help you achieve a smooth transaction while saving you money in the home deal.

Buyers with a foreclosure history have more to prove to the banks; hence getting loans might be tough. Below tips will help them get through the hurdles and secure financing for foreign property investment.

Are banks scared to give loans to boomerang buyers?

Applying for a loan after a foreclosure, if you're a property buyer in the US, is not a piece of cake. The lender wants to be sure of one thing: You are able to pay the loan and have learnt from your mistakes. If you're planning to buy a foreign property, getting financing becomes harder. If you do get financing, you might be immersed in a lot of paperwork.

Banks will want you to prove your income. They will look closely at your bill payment records after the foreclosure (hence the need to rebuild your credit). If you have a traditional job for which you receive a W-2 form, your lender will want to see it and verify your income with your employer. Boomerang buyers (property buyers with a foreclosure history) who work several part time jobs or are self-employed will face more scrutiny. They will have to show their income with several years of tax returns and other documents.

Yes, you might have a lot to prove to the bank when applying for mortgage as a boomerang buyer. This is why Realtor.com recommends including a letter in your mortgage application that explains the reason for foreclosure.

What Most Foreign Banks Require Before Giving Mortgage

Requirements for mortgages will vary from country to country as each country flaunt different taxation structures. Some countries will require you to open a bank account, get a tax identification number or get approval from Government housing agencies before you'd be allowed to buy a home.

You need to be conversant with the taxes that apply in your destination country. For example, foreign property buyers in Spain have to pay a wealth tax (patrimono in Spanish). Countries like South Africa also mandate a building insurance for foreign buyers.

The important thing when applying for a mortgage either as a buyer with foreclosure history or not is your ability to document everything. Mortgage has come a long way from the crisis periods and banks are more proactive. They want to verify any financial information provided.

Tips To Secure Financing for Foreign Property Investment after Foreclosure

Having a foreclosure history shouldn’t stop you from your dream of owning property abroad, here are three tips to get financing as a boomerang buyer.

1. Get equity from your US home.

Your friendliest partner will always be your property of the United States. You could get a second mortgage with 2.8% APR, only a fraction of what you will pay overseas

2. Home Collateral.

If you own a property in the United States, lenders in some countries, particularly international banks, will allow you to put that into collateral. You will have to establish that the property is free from liens. A lien will be dissuasive to the approval of your mortgage application.

3. Focus on International Banks.

When you begin to explore your financing options abroad, you must first visit the branches of foreign banks in the area where you are buying. If the same bank operates in the United States, they will have a better understanding and access to the facts related to your financial situation back home. You can even visit their branches in the United States to know your options.

These options would be effective if you work on your credit. You need to improve your credit rating when applying for a mortgage in the United States after foreclosure. The same is true anywhere in the world.

Buying overseas real estate often comes with increased responsibilities. Hence you need an efficient local real estate agent

While you might be a real estate guru in your home country, buying real estate in a foreign country can get messy without a knowledgeable local real estate agents

Here are just three ways things could go wrong when buying overseas property:

Over-the-top valuations: A foreign buyer probably doesn't have the stats on comps and recent sales that would help him make the best decisions on pricing. Locals might see this as a chance to price the property above market value. Without an agent on your side and banking on exchange rate advantages, sellers might feel justified to charge you more.

Taxes and paperwork omissions: In countries like Spain where there could be local rules and taxes regarding foreign home ownership, it's easy to ignore a few details. Not having the necessary licenses and permissions can be very costly.

Lopsided Communication: Sure your developer wants to come to terms quickly, which you find appealing as you don't want to hang around too long. However, you don't want to sign any form or contract without understanding what it entails. It's always important to get expert advice before signing on the dotted line.

You should have two people on your side when buying foreign real estate, a lawyer, to help with legal complications, taxes and paperwork and a real estate agent to guide you through the home buying process. You might want to ignore an agent's services as a way to save on agent charges. But here are six reasons why hiring a real estate agent for foreign property purchases is vital:

1. Full access to the market: Buyers in North America who work with agents have a full access to the Multiple Listing Service (A service that offers access to information regarding market value, comps and properties on the market). While some countries do not have a property listing service, a good agent will likely have a slew of properties and connections with other agents. This ensures he can secure a property that fits your criteria.

2. Detect overpriced properties: Where there is no MLS to set pricing, sellers and their agent often pad the asking price on their properties. Especially when the buyer has no agent on their side. Even in countries with MLS, ignorance can be a justification for an agent to charge you up to 40% above asking price. You can take advantage of an agent's market knowledge in this case. An agent has comps and data coupled with market experience and should be able to tell you instantly when a property is overpriced. However, do not neglect to do your own research about properties that catch your fancy. This will help you keep unethical agents in check.

3. Help with securing mortgage: One of the risky aspects of buying property abroad is getting financing. When considering going for a mortgage, your real estate agent can give you the low-down on mortgages for foreigners. He or she might also be able to connect you with bankers. An agent can also facilitate your loan by helping you with the necessary paperwork. This is one major reason why the services of a real estate agent are invaluable when you're buying a house overseas.

4. Negotiating and drawing up an offer: Negotiating tactics you have mastered in the US might fail to work when negotiating with sellers in Japan. The reason is that there are culture and language differences which can be difficult to fathom. So instead of trying confrontation or hard sell tactics, it is usually best to hire a professional agent who understands your situation and can persuasively represent this to a seller.

5. Help with finding good deals: You're probably trying to scoop up a good deal on a property. However, it's unlikely you'll find great deals by driving around a neighborhood. Agents have connections with other agents and access to a lot of properties. Hence it's much easier to find great deals by working with them.

6. Recommend trusted professionals: A trusted real estate agent would probably have a number of reputable service professionals in his network from inspectors, lawyers, handymen, mortgage lenders etc... This would be highly beneficial since you have little experience in the neighborhood and might be susceptible to pseudo professionals.

Caveat: When choosing agents to work with, work with vetted professionals. Don't just go with the agent down the street as that might turn out costly. This is why we periodically recommend agents in select communities who are vetted and have significant market experience to make your foreign property dream come true.