FrustrationRealtors do more than show homes.
 
In 2008, a buyer considering the purchase of a home, consulted with me about buyer representation. We met in my office to discuss buyer representation and the "must have" characteristics of his perfect home and neighborhood. The buyer did not sign a buyer's representation agreement.
 
Over a two week period the buyer pondered whether or not using a Realtor was in his best interest. During this time, I sent him listings that met his criteria. He did not express interest in any of the listings he received.
 
One morning, the buyer called to tell me that he was going to make an offer on a FSBO. He explained that ALL homes listed by Realtors were overpriced due to the Realtor fees built into the list price. He explained that the seller was giving him a "good deal" on the property because there were no Realtors involved in the transaction. How did he know the price was a good deal? The buyer said he knew the neighborhood well and he knew his negotiated price was fair. He decided not to have an inspection because the house had been updated. Big mistake. The buyer had a lawyer prepare a contract that was, in his opinion, better than the Texas Real Estate Commission contracts.
 
Fast forward five years. The homeowner wants to sell his house and the house is worth less than he paid in 2008. In addition, he has invested in $25,000 worth of repairs to the house.  The average sales price in the neighborhood remained stable during the downturn in the real estate market and the homeowner is confused.  
 
Why is the house worth less today, than it was worth in 2008? Well, the buyer knew the market so well that he paid approximately $50,000 more than he should have for the house in 2008!
 
Realtors provide buyers with detailed comparable sold property information to help them make educated decisions about the value of properties.
 
 


 
Post is included in group: Keller Williams 'Rainers
Post is included in group: ABR/REBAC
Post is included in group: 2013 BIG Jumpstart Blog Challenge

32 Comments on Realtors Do More Than Show Houses

20 Most Recent Comments Displayed Show All

JAN
29
861,135 Points 70 Featured Posts Outside Blog Called Shot Master

This proves the point of NO DO-OVERS in Real Estate...I have seen stubborn people who carry that dysfunction right into a large transaction. An agent who is guided by fiduciary and gets paid for results is still the-best money spent when it comes to buying or selling
6:50am • #13
422,520 Points 22 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

Sharon, you really hit the nail on the head - educating the public about what we do is an ongoing project.

I recently represented Buyers in a transaction where Seller was listed through discount Realtor, i.e., no representation. He was astounded at the obstacles we faced along the way and complimented me several times on my level of patience, problem-solving abilities, vast resources . . .  At closing, he and his wife told me they would never attempt this again on their own and would recommend me to anyone.

And the big problem with FSBOs is that the Buyer THINKS they are getting a better deal because no commissions are involved - almost never true!
7:16am • #14
599,957 Points 58 Featured Posts Outside Blog Called Shot Master

Hi Sharon, My that was a very costly experience for that buyer, who didn't think he needed representation. When will they ever learn that we do more than just show homes. After all, the buyer's interest always comes ahead of our own.
7:17am • #15

A common story...Thanks for this good post! Buyers truly benefit from working with a Realtor!
7:20am • #16

The NAR, our state and local boards need to do a better job by launching campaigns to address, promote and educate the public on the specifics of Buyer and Seller representation/agency.  The differences in each and why the public needs us to protect their real estate interests so that it becomes automatic to Buyers and Sellers.  Then once we mention the need for representation, the public is already on board.     
Ron Tissier
7:28am • #17
245,354 Points 22 Featured Posts Outside Blog Called Shot Master
That is always a tough conversation down the road. A bitter pill but the reality of this business of buying and selling homes is not just being the key holder, but knowing the market and protecting the buyer from themselves. In this case, the buyer already thought he knew the neighborhood and thought he made a reasonable offer. Turns out he was horribly wrong and now five years later, cannot afford to sell. Too bad. Thank you for sharing!
8:07am • #18
789,770 Points 112 Featured Posts Outside Blog Called Shot Master

Sharon, I am so troubled when I hear things like this. Buyers think we want them to use us so we can get paid. Well, obviously I need to get paid but I see so many buyers overpaying because they didn't have representation. It's unsetting to me because this situation could have been easily avoided had he used you.
8:10am • #19
949,343 Points 52 Featured Posts Called Shot Master

I will never forget an old friend, who had moved to another state.  While there they went out and viewed homes to buy.  She gushed when she called me after.  Yep, she had decided she was going to get a real estate license.  It was obvious she hadn't a clue how much goes on during a real estate transaction.  I told her to call me back after she got her license and had been "selling" for 6 months.  She got her license alright, but never left her job in the health care industry:-)
12:48pm • #20
700,464 Points 56 Featured Posts Localism Sponsor Outside Blog Called Shot Master

Sharon, recently a friend of mine sold one of her friend's daughter and son-in-law a house. They had only looked at 5 but found the perfect one. The friend then "teased" her at dinner asking if she was planning to take less commission since she didn't have to "do much".

After the inspection they realized that the upstairs furnace was 27 years old. She suggested that they get an HVAC person out to Really inspect them. Found cracked heat exchanges in both upstairs and downstairs furnaces. Her Buyers are now getting new furnaces. I told her to tell them next time it comes up, "that's why we get paid what we get paid!"
1:04pm • #21
240,721 Points 14 Featured Posts Called Shot Master

Another expert doing himself harm by obviously knowing more about something then the professionals. 
8:08pm • #22
1,363,759 Points 42 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
sharon - It's unfortunate that this buyer didn't have someone more knowledgeable to advise him so he woudln't be in this position.
8:43pm • #23
905,168 Points 10 Featured Posts Attended Rain Camp Called Shot Master

Sharon, I guess this wisdom comes to the buyers after the fact - most of the time....lol!
10:06pm • #24
JAN
30
133,148 Points 4 Featured Posts Outside Blog Called Shot Master

Such a fantastic post, Sharon. And one that can be repeated enough!! I can't begin to tell you the number of people who respond with "I love to look at houses" when I told them I was going into this field.  They have NO idea! But what a great opportunity for us all to educate them!! Congrats on the feature and cheers to working with people who appreciate ALL you have to offer.
4:53am • #25
190,519 Points 11 Featured Posts Attended Rain Camp

Sharon, this is a GREAT post. Agents should send this to buyers and sellers who are on the fence about using a real estate agent. So many people think they're "knowledgeable" and that they can go through the transaction on their own, however many times that is not the case. Would you represent yourself in a lawsuit? No, you trust a lawyer to help you. Real estate tranasactions involve large financial decisions and you need a professional to help you. I'd share this story with a number of clients, if I were you!
7:13am • #26
FEB
02
403,367 Points 28 Featured Posts Outside Blog Called Shot Master

An "almost" listing of mine said to me recently, "I've been around the block a few times, I know what's what." Buyers and sellers may have been around the block, but I bet they keep getting nailed with questionnable decisions because they won't listen to a professional. They can't get over the fact that we do get paid for our knowledge and help. Ultimately, they just never learn the lesson of making bad decisions.
5:49pm • #27
238,883 Points Called Shot Master
Buyer's misguided perceptions are unfortunate, especially when irreparible damage has occured. High price lesson.
10:31pm • #28
FEB
24
599,957 Points 58 Featured Posts Outside Blog Called Shot Master

WOW, Sharon. What a costly mistake this homeowner made by not having Buyer's Agent Representation. Your post is a "Wake Up Call" for those. who think that can get a better deal without our help, and advice.
6:05pm • #29
FEB
25
493,407 Points 12 Featured Posts Attended Rain Camp Called Shot Master

Thanks to all for the valuable comments.  This was a costly mistake for the Buyer turned Seller.
10:06pm • #30
FEB
26
1,357,742 Points 130 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Does this buyer now want to sell as a FSBO to save the "uneccessary " fees? 
7:02pm • #31
493,407 Points 12 Featured Posts Attended Rain Camp Called Shot Master

Margaret, I think you have hit the nail on the head!
7:08pm • #32

20 Most Recent Comments Displayed Show All


Captcha

Drag the car to the circle on the side.

Image?id=fa2fef4029e88ab5f0c8f6627073122522469d0f Image?id=8ad1306f11dc7af14216076e082203451a080b75 Image?id=269d3d7d9ba901c36952e6e041e769cf8f476155 Image?id=19bc9da3b88d91d63771fc320e4cc671053e80e5 Image?id=be03dface24fa9aabaec5f8e7b3a067bb1a07bd7

Accessibility option: listen to a question and answer it!

Type below the answer to what you hear. Numbers or words, lowercase:
Leave a response…

(optional)
Captcha

Drag the clock to the circle on the side.

Image?id=125bba4b2bddcaa9aec603077ed03f8a4cb304e4 Image?id=7c27e8b0687e4d001c0551c7e66c20ea5bd67ab8 Image?id=ef063da23ddc95ed241456a394dc6a6f2f78f3cf Image?id=dec914eb9a1bdfb6e248f811133746e3a3ec8f01 Image?id=c9d8e1a0aec92ae02618eaf729422c62125970c3

Accessibility option: listen to a question and answer it!

Type below the answer to what you hear. Numbers or words, lowercase:
 

Find TX real estate agents and Dallas real estate on ActiveRain.