In this article I am going to tell you 5 reasons you need an annoying realtor. And they are…
You may think realtors are annoying (and so do I), but these 5 reason are why you need them.
When it comes to buying and selling real estate, there are a lot of people who look at real estate agents with a slanted eye. I mean, anyone can get a real estate license, and it seems like everyone has been a Realtor. It’s like every year there are 1,000 who get in and 900 who get out. They are almost in the same category as a used car salesman, right? Why do we need annoying Realtors anyway?
Well, unfortunately, the industry has been plagued with people deciding to get into real estate with the belief that becoming a realtor is easy money. I literally had someone call me up and tell me that they were going to get their real estate license to get some quick cash since he knew that we didn’t do much work. It would help him get some quick capital for an invention he had. He wanted my advice on this. I told him to be prepared for the end of his freedom and that he would soon realize how much time is spent in real estate.
The truth is, only about 7% of the realtors do 93% of the business. If a buyer or seller happens to get a realtor who is not very knowledgeable in the industry, it further deepens the questions as to “why we need” realtors. If 7% of them do most of the business, the odds greatly increase toward a mediocre experience if there is not careful consideration in choosing.
Let’s start with the licensing of realtors and why the government requires a license. The sole reason for real estate regulation and the licensing of realtors is to protect the public from unscrupulous salespeople.
It is one thing to go to a retail store and get talked into a bad purchase that you regret, but it is another thing to make the single largest purchase of your life with potential regret for 30 years.
There are reasons why contracts have gone from 1 sheet of paper to almost 20 pages of small print followed by another 20 pages of disclosures. Those reasons are called “lawsuits” between buyers and sellers.
Using a licensed realtor will ensure that regulated guidelines are used on both sides of the transaction. Realtors are bound by ethical and fiduciary duties by law. They know how to navigate through a transaction so that more often than not, all parties are satisfied.
Let’s talk about what a good realtor does every day of the week including weekends…They simply run all over town looking at inventory, negotiating offers, completing home inspections, keeping themselves informed through continuing education, marketing, networking, organizing contractors and helping clients in their due diligence tasks.
A good realtor is fully submerged in real estate every single day. They have worked through transactions that were easy to close all the way to transactions from hell. They have seen it all. Experience is behind every good realtor.
The knowledge that comes from an experienced realtor is unmatched by any “do it yourself-er” or part-time realtor. If you were wanting top dollar for your home or wanting to purchase your dream home, would you want to use a Realtor who has done a few transactions each year who may work another job, or a full-time successful Realtor who has helped 1,000 clients buy and sell their homes?
A realtor should be there to educate and assist you in the process so that you can make the best decisions for your family. The risks are greatly diminished when someone who lives real estate as a lifestyle is representing you.
One of the best ways to make sure you are working with a good Realtor is to “Google” their name. You will find out who they are…or better yet, who they are not.
A good realtor is a professional at marketing and networking. The first form of marketing the realtors use is the Board of Realtors “Multiple Listing Service” (MLS).
This service is in real time and is fantastic for buyers and sellers to locate or market homes for sale. But, it does not stop there…or should I say: “it should not stop there”.
Sadly, for many realtors it does, but for an active, submersed agent there is the utilization of much more than the MLS. They utilize hundreds of other web sites to search and market homes. They also use magazines, mailers, flyers, video and literally talk and network with hundreds of people a week.
Your chances of getting a deal or selling a home are increased when there is a networking realtor working for you.
When a licensed agent is full-time and they are out in the market every single day selling homes’, you can imagine the experience they get in the market. They will literally witness prices rise or drop from one day to the next.
Someone who is not full time may underprice or overprice a home because they do not realize how much the market might have changed in just 30 days time.
Let me give you a little story of a “for sale by owner” who was in this exact situation and did not want to pay any realtors for their expertise in Colorado Springs.
The seller slapped a sign in the yard and put an ad in the paper advertising his home for $175,000. A passerby saw the sign in the yard and called out of curiosity to ask for the price.
When they heard $175,000 they thought maybe there was a mistake. The home was probably worth about $230,000. They decided to make an offer immediately with the owner.
It went under contract.
About halfway through the transaction, the seller got to talking to someone who helped him realize his mistake and he tried to back out of the contract.
The buyer took him to court and the court forced the contract to completion. Ironically, the seller lost an amazing amount of money trying to save from paying a realtor any commissions.
Any decent realtor worth their weight would have helped the seller make another $38,000 after paying 2 realtors and closing costs. This is just one example I have seen where someone has been burned trying to avoid the realtor.
I know that there are many people across the country who successfully complete real estate transactions without realtors. However, it’s like asking someone who went to Las Vegas for vacation if they made any money. When they do make money, they are happy to tell you about it. But you never hear the sad, embarrassing stories of being taken to the cleaners. That would make them look stupid.
Personally, I think it is gutsy to attempt such a huge transaction without a professional realtor, but the ones that get burned…I think about how stupid their decisions were and have just asked myself: “What were they thinking”?
When working with a full-time Realtor, you can benefit from their knowledge in what to do to prepare your home for sale.
For example, an experienced realtor may suggest some inexpensive things you can do to your home that will make 10’s of thousands of dollars in the sale. No seller would want to put $20,000 into a home in order to get $10,000 more in a sale.
It is quite the opposite. A full-time realtor can help you put $5,000 into the home to get $20,000 more in the sale.
Not only can they suggest repairs and upgrades, but they know of good contractors in some cases. They have seen many different contractors and may be able to refer one to you.
When it comes to specialized professions, I say trust the professionals before yourself. If you need a root canal, do you just get a drill and do it yourself to save money? No! We would say that is stupid. Yet, everyday people gamble with the largest investments of their lives with no representation. It amazes me.
Search out realtors who are submerged in real estate every day. You can thank me down below!