Realtors 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.