To use or not to use? That is the question.
April 7th, 2009 | 
Author: Over my years of service in the mortgage industry, I have always encountered people that are out to save a dime. Now, before you get the wrong impression, I do not think that saving money is a bad thing. However, when it means that you need to cut corners, I think it is the worst thing that you can do. When it comes to Real Estate transactions, it is best to not go it alone. Too many times I have been speaking to an applicant that is looking to acquire financing to buy a home and learn that they are doing it without a Realtor. In my opinion, this is about as silly as taking a shower without the soap. The water can help knock off most the dirt, but the funk is still going to be there.
Whether you are buying or selling a home, when you decide to take it on by yourself, it is even more difficult. Not only do you lose the expertise of the Realtor of today’s market, you also lose their expertise in marketing. That is just the two things that are on the surface. You lose much more than that when you really get past the surface. A Realtor can instruct you on things that you do not know about, such as the benefits of a particular neighborhood that you might want to check out. Ultimately, going into a selling or buying mode for Real Estate without the advice of a professional is as bad of an idea as it would be to go to Alaska in the middle of Winter with just a bathing suit.
Where most people go wrong with this thought is they typically do not know the ins and outs of the Real Estate Market. Leaving your Realtor on the shelf might cost you money in the end at the closing table. You are basically leaving your negotiator at home. Would you want to have take on a hostage situation without the backing of the best negotiator on the police force? I do not think so.
So, before you decide that you want to list that home on FSBO.com or any other site that leaves out the Realtor, think about what I said. You might save the money on the closing, but if you misprice your home or have trouble with negotiating, you could lose even more money than you are saving. Oh, and before I forget this most important fact; time is money. How much is your time worth?
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Great article! The use of a REALTOR is imperative. I wouldn’t do my own taxes, drill my own teeth or perform surgery on myself. I will always leave it to a licensed professional.
Lori Palermo’s last blog post..Tips For Sellers #2
Lori, I am with you there. Not using a Realtor is as bad as going to court to defend yourself in a murder trail.
Sound advice, Danny. However, you may have left out one thing — remember that a Realtor doesn’t cost the buyer a dime and they get someone who may negotiate a better price for them, to boot.
As for sellers, the ability to put a home in the MLS is extremely valuable in terms of marketing and getting the best price.
The Hawg!’s last blog post..How much does a house in Arkansas cost?
Hawg, that is a great point that you bring up. Thanks for the addition.
Probably a little bias coming from a Realtor but those that try to sell their home without a Realtor usually fail over 80% of the time. The potential buyer always wants a piece of the sellers savings anyways.
Westboro Real Estate’s last blog post..43 Lincoln Lane Grafton Massachusetts Forest Hills Short Sale
Very insightful advice. Many people don’t realize that not using a Realtor can be costly.
Rich Dansereau’s last blog post..Gibbs Youth Athletic Association
Danny, it is a proven fact that those that use a Realtor in their transaction makes more on their sale than those that don’t. As a buyer, the used of a trusted professional is paramount to getting the best protection.
Fred Chamberlin’s last blog post..Owner Carry Contracts vs. Due on Sale Clause
Rich, that is so true.
Fred, I could not have said it better myself.
Good post Danny, thanks for passing it along!
Bill, bias or not, it is a fact. It is pretty important to make sure that the deal that you get is the best for you. I would have to ask anyone that is going to sell their home if they would also want to do battle with a gladiator that was dressed in armor if they were not allowed to have armor of their own.
Laura, glad that you liked it.
Danny – one important thing that a seller has to remember … when they go it alone with a simple For Sale sign in the yard and they wait 3, 4, 5 months or more and still have not sold their home, and THEN list with a Realtor, they have lost time, money, and exposure. And if they have signed on with one of the FSBO companies … well, often times they are throwing good money away, IMO.
They have also left a buyer/shopper with the idea that something is wrong with the property as they have seen it for X months every day as they go to work, go shopping, etc. and it’s STILL not sold.
The marketing programs, the professional exposure that hiring a Realtor can provide are only a couple of the benefits. I won’t even go into the benefits of having an experienced negotiator on your side.
Carol, all of these are great points. Thanks for taking the time to add some more value to this post.
Dear Danny, This is a great post. The issue I often see is Buyers that want to cut out the Buyers agent and just work with the listing agent. They don’t seem to realize the Listing agent works for the Seller. He is trying to get the most money for his client, and not representing the Buyer. A Buyers agent will help you get the best price for a home and make sure that your interests are represented. Thanks for another great post!
Betina
Betina, you hit the nail on the head.
Danny great post and thank you! More important than all of that is the fact that Realtors® know the legal ins and outs required for a legal and binding contract. Many FSBO sellers don’t realize that they are bound by law to provide a Seller Disclosure, and how about a Lead Based Paint Disclosure, and some of our counties require Smoke Detector Certification. There is more to it than posting a sign in the front yard and putting out some fliers!
Sandy, that is some great information. Thanks for interjecting.
I see alot of agents doing the zero percent and then getting the buyer side for commission this might make the seller interested in listing, and they would get the professional advice.
Robin, this is intriguing.
Insightful analysis on the use of a Realtor for the purchase or sale of your home.