Real Estate Blog - EVERY DOG GET'S ONE BITE - Buyers and Sellers Often Learn the Hard Way

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EVERY DOG GET'S ONE BITE - Buyers and Sellers Often Learn the Hard Way

AND EVERY CONSUMER GETS ONE BAD HOME BUYING OR SELLING EXPERIENCE

THAT is when buyers and sellers learn, from experience, that when they buy or sell again, perhaps they should work with the advice of someone who is trained and experienced to buy and sell real estate.

Yes, the Internet has made the consumer an empowered home buyer or seller. Or, has it?

It doesn't really matter if it has or not. Perception is reality when you are uninformed. If the consumer believes that they can do a better job of buying or selling a home without the aid and counsel of an experienced real estate practitioner, they will simply have to learn from experience that it just isn't so.

The average consumer THINKS that they know enough about real estate transactions to work without an agent. The average agent KNOWS that the consumer know very little beyond finding homes to tour. We know now that a large percentage of home buyers and sellers are influenced by the "Save $Thousands when you sell your home". Or, "Buy a home and get $Thousands at settlement".

THE REALLY EASY PART OF REAL ESTATE TRANSACTIONS

Finding homes for sale.   Listings of homes for sale are everywhere.   They're on the Internet. They're in the newspaper.   Drive around and look for signs. Finding homes for sale is the easiest part of buying a home.

Listing a home for sale.   For Sale By Owner listings can be listed on the Internet on web sites devoted to owner's listings of their homes for sale. Go on the Internet and you'll find companies that will enter a home for sale for a few $Hundred Dollars.

WHAT HAPPENS THEN?
Sure. Finding homes for sale to buy or listing homes for sale is easy. What happens when a buyer finds a home they wish to buy?? What happens when a home owner meets a buyer that wishes to buy their home??

What does the average home buyer or seller understand about:
        Making Offers
        Contract Processes
        Escrows
        Negotiating
        Financing
        Inspections
        Disclosures
        Verifications
        Notices
        Home Owner Associations
        Condominium Associations
        Co-operatives
        Material Defects
        Title Process
        Defaults
        Settlements

There are too many aspects of the home buying and selling processes to list here. Fact is, finding the home or finding the buyer is the easy part.

Homefinders.com What makes buyers and sellers believe that they can manage a real estate contract without the advice and counsel of a trained and experienced real estate practitioner? BECAUSE they believe the advertisements that tell them how much money they can save by "do it yourself real estate practice". Or, because they believe the media who has found the real estate practitioner to be the gift of negative press that just keeps on giving.

When do buyers and sellers use the services and gladly pay for the services of a real estate practitioner??   My experience is that they will seek the services of a real estate agent or broker on their second transaction and every one following that.

Buyers may have toured Open Houses and tried to buy one only to find that the agent on duty, while offering to help, clearly approached the matter to the advantage of the seller. Or, they may have actually purchased a home without their own agent and that experience taught them to seek help on their next transaction.

Sellers may have tried to sell the home without the aid of an agent or broker only to have the signs become weathered waiting for a buyer to make an offer.   Or, they might have gotten a contract and the buyer couldn't get financing.

Just like every dog is entitled to one bite, every home buyer or seller entitled to find out for themselves that they do need our help.

Courtesy: Homefinders.com

buyers agents maryland, buyers agents virginia

Posted by Lenn Harley, Real Estate Broker, Maryland & Virginia on 06/05/2007 08:30 PM

Comments (36)

buyers agents maryland, buyers agents virginia

36 Comments on EVERY DOG GET'S ONE BITE - Buyers and Sellers Often Learn the Hard Way

JUN

2007

And some bites hurt more than others. Hopefully they'll only get a nip before they learn.

Very good point Lenn. But sometime people are just stubborn...they are going to save that commission if its the last thing they do. I have 30+ transactions under my belt and I am still considered "new" to the industry...what does that make a home seller/buyer when they have never done it before.

True, Lenn, I have a seller now who OVERPAID 2 years ago buying from a FSBO. ouch, they are losing about 40K in this market. Precious young couple, that was their one dog bite.

Lenn, I can't count how many transaction I have closed that would have NEVER closed with out me keeping the seller and buyer focused. How many deals would kick due to:

Bad inspections, closing extensions, title issues, financing bumps etc etc......

These are the areas where experience makes all the difference in the world. Anyone can write a deal getting it closed is where the game begins.

I do know that experience helps when it comes to getting deals to the closing tables. Not that I have tons, but I have stayed on top of things and have asked for assistance when I knew I needed it to complete the deal. Nice post, great points. Wouldn't it be nice if our clients would listen to us better?!?!?!?!

You are so correct everytime I think it is just to quiet I knock on wood.

Agreed. Most clients will never know how much we do and shield them from ... all the crap we have to put up with. Maybe that's the problem. If we focus on the value we bring to the transaction as being points such as BB brought up instead of plastering our shiny faces all over bus benches saying "Top Producer" "#1 in <your city here> and actually tell people WHY they need us REALTORS wouldn't be under attack all the time.

Bob brings a valid point as well. What makes FSBOs think that they can do our jobs better when they only do it once? Especially here in CA with all the state required disclosures. Are they covered by million dollar E&O policies? Who is the buyer going to sue when they find out the back part of the property has a red-legged toad living on it and now you can't go in the back yard?

If you've never seen the "CA Statewide Buyer and Seller Disclosure" form, let me know and I'll send it to you ... for those of you who have only heard stories about how uptight and sue-happy Californians are, here's the proof. One quick example ... there is actually a paragraph in this 10 page document entitled "ERRANT GOLF BALLS!!" Just in case you don't realize that if you buy a house next to a golf course you MAY GET YOUR WINDOWS BROKEN!

Yes, there's more.

Unbelievable.

- James

Lenn - what a great post this is for every buyer and seller to read! There is SO much more than just finding the house online somewhere or stumbling into an open house. I've had buyers think that they 'did all the work' because they found the house online.......then we get down to the nitty gritty and they see that really wasn't any of the work at all.

Great message in this post - thanks for writing it out.
Ann

It would help our collective cause more if we weren't always so focused on 'i can let you search all listings HERE!' and more on the process of the transaction. As I say all the time, I don't earn my money before contract, I earn it between contract and closing.

Lenn- another great point well delivered..this should be the headlines on every Sunday Newspaper!
I was raised knowing "you get what you pay for".

Excellent points and great post. It is so true. Finding a home is really easy. Especially with so many.

fantastic article Lenn. Yesterday I took a listing from a seller who has paid over $6000 so far in FSBO costs and marketing (a certain kind of company **cough cough**)

Now her "do it yourself" is costing her 9% in costs just to sell it!

What a great article Lenn. I hope the couple who took the $40K bite plan on staying in their home for a LONGGGG TIME. Sounds like a clear case of being penny wise & pound foolish. Thanks again for imparting your wisdom!

Well, you convinced me, Lenn! Great post and terrific advice for buyers and sellers...if they will listen. Each purchase or sale is a valuable lesson (and I can speak fro my own personal experience!). You are so right - finding the home is a breeze.

Jeff

Exactly correct Lenn! I love this article! Saving money can sure cost alot!

Lenn - A Fantastic Article! I think I will print and put in my buyer/seller packets!

Learning the hard way especially when there is money involved seems to be the one and only way for some people I just hope that dog bite does not leave a permanent mark.

Lenn... Great post. It's so true until you experience how complex and difficult buying or selling a home is you won't appreciate a real estate professional. When they realize that it's harder than they thought, they will value our experience and counsel more

Great information and so very true. There are so many aspects to the transaction. It really should be left in the hands of professionals!

So true Lenn. And we know that it's true!

Yesterday I took a listing and the seller wanted to know why I charged more than some other agents she had talked to. I just explained that in this market we need more. And, explained that my behind-the-scenes work would be what would get her home to closing.

And, yes, these first-time sellers had tried selling their home themselves. And, discovered that the people who seemed interested were in fact, maybe interested...but not interested enough to buy.

You are so right Lenn.

The irony here is the 1st timers need our knowledge even more than the experienced buyers and sellers that gladly pay for our services.

Lenn, fabulous post! Much like my 16-year-old son, these types of consumers MUST learn the hard way before they're willing to listen to educated advice. Thanks for sharing a great post!

JUN

2007

excellent post!

"There are too many aspects of the home buying and selling processes to list here. Fact is, finding the home or finding the buyer is the easy part."

Couldn't agree more with this quote...Keep up the wonderful reading material

Logan Chierotti, Colorado REALTOR

www.coloradohomehelper.com

Gregory. I spoke with a buyer last week who paid $2,995 to have her house listed by a discount listing broker and it got her not one viewing in 3 months. Money paid in advance. Gone.

Bob. I love it when a first time home buyers calls me and says "We've never done this before". I tell them that "It's O.K., I've done it many times." They feel much better.

Missy. I've seen it many times. They often have to lose a bundle before they hire someone who knows what they are doing.

Bryant. Agreed. I've often said that our work REALLY begins when the contract is signed.

Cynthia. My clients DO listen to me. BUT, they have to find me first. Often they have very bad experiences trying "do it yourself real estate".

Rebecca. Thanks for commenting Rebecca. It's quiet around here too.

James and Ely. The Maryland contract in Montgomery County will go about 30 pages. Most agents don't know what half the stuff means.

Ann. My pleasure. It seems that I get a lot of calls from folks asking for advice. "Where do I start my resarch?" they ask. I tell them to start by going to real estate school.

Leigh. I agree. However, we have to give the public what they want just to get them
to call. Looking at pictures of homes for sale is all they want in the beginning.

Michelle. Thanks Michelle. You made a great statement. Folks DO get what they pay for.

Christy. Good point. There are so many homes on the market, folks don't know where to start.

Jennifer. Thanks. That FSBO seller should write a post to the local newspaper. When you sell their home, get a letter from them.

Antoinette. Thanks for commenting. $40K is a lot of money.

Jeff. Would that home buyers and sellers could see into the future. Thanks for stopping by.

Chris. Good point. I'll remember that.

Paula. My pleasure.

Mott. Thanks for stopping by and commenting. How much "CE" does the average home buyer or seller attend???

Mana. Thanks for commenting. I've spoken with many consumers who learned the hard way.

Nattalie. Experience is everything in real estate transactions. Even new licensees learn that when they have their first sale.

Shekeria. Agreed. Thanks for commenting.

Eileen. I can't tell you how many folks I have spoken with who tried to sell their home themselves. Even at Open House, they
don't know how to ask an interested buyer if they would like to write a contract.

Mitchell. Thanks for stopping by. I've found that first time home buyers are more willing to get help than first time sellers. They'll learn.

Ryan. Thanks for commenting. My pleasure. The 16 year old will give you credit for some sense when he's 35.

Logan. Thanks for getting the message. It doesn't take a Rhodes Scholar to find a home you like. But, THAT is when experience counts.

Lenn, I like your observation, "perception is reality when you are uninformed". Wise words.

Lynn,

Really like your comment "Perception is reality when you are uninformed." We are constantly doing everything we can in our market to help the public become more informed. Our blogs and quarterly seminars are what we're using mostly to provide the information.

Also want to thank you for recently visiting our Lake Tahoe Real Estate Blog. Saw that you added yourself to recent readers and it's much appreciated. We're still kind of new at some of this AR blog stuff, and how it all works and fits together, but as soon as I finish this comment I'll go to your site and see if I can figure out how to return the favor.

Cheers

Gary

Great information Lenn - this will always be true. No matter how far technology goes home buyers and sellers will still need a professional to do the detail work of the transaction. There are just too many variables to through it into a computer system and have it all work. And most of the variables are not something you can just put in a computer system.

Lenn, thanks for the post. It seems, with the advent of all of the television shows devoted to real estate, people suddenly believe that it can be done sans real estate agent. The shows have a huge following, and they leave the impression that the agent is simply an end of the experience attachment, after the seller has done all of the rehab, fixing up, etc. Little is shown with respect to what happens after the house is completed, and no shows focus on the complications throughout (that I've seen). People clearly LOVE real estate- and there's an insidious underlying message that it can be done YOURSELF. Not quite accurate...

Hi Lenn,

I just read somewhere that a couple of Flip this House episodes were bogus....more gas on the fire! The true professionals in this business will not fear competition, which is all these do-it-yourselves are. We have been offering a menu of services, and honestly most don't opt for the lower end service.

Dick Beals

Lenn,

A real estate transaction is a complicated process that requires expert handling. The average buyer and seller should seek professional guidance to help them avoid costly mistakes. The extra savings could disappear in a heartbeat.

Great post and great advice for buyers and sellers.

You make it all sound so complicated. Why can't we just put a forsale sign up and watch it go?

THANKS FOR THE COMMENTS FOLKS.
I'm putting this one to bed now.

Brian. Thanks. It surely applies to "do it yourselfers".

Gary. Thanks Gary. I don't inform the public. I help my buyers one at a time. Problem is that
the public really can't be informed, IMO, with a foundation in real estate principals and license law.
The public needs to pay US to help them.

Abraham. Technology has helped buyers THINK they can do what we do. They cannot.

Laurie. Thanks Laurie. All you say is true. The TV shows give folks a glimpse of real estate life.
It doesn't give them a real picture.

Dick. I wouldn't doubt that for a minute. I quite often see things on those shows that is very misleading.

Esko. You are 100% correct.

Dianne. Thanks for stopping by.

Teresa. Great idea. Let's keep it simple and then even a real estate agent can do it.

JUN

2007

Great advice, Thanks!

Lenn: We're happy to see this was featured! We deal with real estate know-it-alls with some frequency and they just don't get it!

Jay

JUN

2007

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