With all of the negative media surrounding the real estate market right now, and with the "Discount Brokers" falling off the rotting carcass like swollen ticks, I found it quite surprising to see a series of articles posted by a writer on the US News & World Report, where he faces-off an Arizona Realtor and the VP of Operations for a FSBO company. 

The premise here is that there is still some dispute over using an agent to buy or sell your home...I thought that bubble burst with the market!  It would seem elementary, after thousands upon thousands of consumers fell prey to less-than honest dealings of some of the largest lenders, that NOW is the time it's MORE necessary than ever to use a good, honest agent to represent your best interests!

Granted, if you have nothing but time on your hands, and can do ALL of your own research, including the hundreds of pages of contracts and addendums, and you personally know and trust professionals to do things like home inspections, appraisals, and you plan to hire an attorney anyway--sure, maybe you could buy or sell your own house, but for arguments' sake, why?

Study after study has been done and published that prove that those using a licensed Realtor to sell their home net an average of 10-15% MORE than those who choose to sell on their own, which makes a case not for the seller, but for the buyer!  Since average commissions (which granted, are unregulated and vary from state to state), are MUCH lower than 10%--the seller might as well just hand over a few grand along with the property.

On the flip side, buyers don't even pay for their agent to do all of the research for them, to consult, negotiate, and coordinate all of the transactional details of the purchase, so why would a buyer choose NOT to hire an agent? They save you time, money, and sanity!

Silly argument if you ask me, but then, I'm biased, it's true.  The first four properties I bought prior to obtaining MY license I used a Realtor!  I kind of looked at it like this:  I wouldn't hire a plumber to work on my electrical systems, and I wouldn't do surgery on myself--I hire the RIGHT professional for the RIGHT job! 

 >

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14 Comments on A Real Estate Rumble ~ Does Anyone Really Still Think They Don't Need an Agent?!

I wouldn't worry about him.  He can buy and sell as he pleases.  He can't use any one else as an excuse however.

07/19/2008 01:22 PM by John Walters (Specialized Real Estate)


There are some buyers that really don't need us.  Others that really do...  The problem is that many of the ones that do don't recognize that. 

07/19/2008 01:28 PM by Lane Bailey - REALTOR & Car Guy (Diamond Dwellings Realty)


Yup,

Sometimes people need us more than others, I have had many a client that is good enough to do it on their own, it just depends on how much time they want to spend on it.

Take care!

RJH

07/19/2008 01:32 PM by Empire Realty


I often provide potential sellers or buyers with a list of "what if" scenarios.  Every scenario has been part of one of my transactions or the transaction of a Realtor acquaintance.  I tell them that if they know how to handle the situation, they don't need a Realtor. 100% of the time they decide that Realtors really do work hard.

Your article is well written and right on!

07/19/2008 01:35 PM by Sharon Parisi, MLA, ABR, GRI, SRES, HHS (Keller Williams Realty)


Here lies my problem. After I was a Realtor for many years ... a very successful top producer with my own brokerage I moved to Hawaii. I built a house my wife hated!!! Of course I had to sell it, she refused to move into it. I could not find an agent that lived up to my high standard and ended up selling it myself. Even though I am a Realtor again here in Hawaii if I were not I would be a FSBO. I have my way of doing things and finding an agent who is as good as me ... well, it will never happen. Don't get me wrong, there are plenty I respect as Realtors and I know they work very hard ... but nobody does it my way and that would be a requirement for me in hiring an agent.

07/19/2008 01:39 PM by Patrick Lambert (Century 21 All Islands)


Buyers are being taught that they don't need agents because the Internet makes non-licensees as good as an experienced agents are.  Add to that line of mis-info, all the Z ill ow and Real tor dot com staffs pumping out articles and blogs about their greatness, and all buyers start believing licensees just take pictures of houses that show themselves for deals that just happen.  LOL

07/19/2008 01:44 PM by Heath Coker, Broker Owner (Cape Group Real Estate & REindex.com)


I just do a pre-listing Inspection and give them a report of my findings. It is up to them to sell it that way or just spend the time and fix items I list.

Either way is good for me. I give them the way it is up front. Up to them to drop the price or fix. The realtor's want that done also.

Jeff

07/19/2008 01:46 PM by Jeff Christensen - Home Inspector - CEREIS Edifice Inspection Specialists (CEREIS Edifice Inspection Specialists)


John--the issue is, however, that many consumers believe the media and the drivel that's put out there!  I have more than one client right now I'm trying to resue from foreclosure becasue of MIS-representation and MIS-information!

07/19/2008 02:54 PM by Real World Properties, Inc. - Home of ForeclosureBusTampa!


Lane--you're absolutely right, and that's precisely the issue!  The ones who need us the most often wait untl it's too late!

07/19/2008 02:55 PM by Real World Properties, Inc. - Home of ForeclosureBusTampa!


RJH--yes, and I also have quite alot of knowledge gleaned from being the daughter of a nurse and fiance of a doctor...I still get physicals once in a while!  ;^)

07/19/2008 02:57 PM by Real World Properties, Inc. - Home of ForeclosureBusTampa!


Sharon--you and me both!  I believe that one of the most important parts of our jobs is to FULLY inform our buyers and sellers of all factors which may, or may not affect the transaction.   Thanks for posting!

07/19/2008 03:01 PM by Real World Properties, Inc. - Home of ForeclosureBusTampa!


Patrick--maybe if you'd hired a good consultant when you built that house the wife wouldn't have hated it!  ;^)

I have had Realtors consult me on what to do in certian situations--Real Estate is SUCH a varied and specialized field, not even the licensed ones can possibly cover everything!

07/19/2008 03:04 PM by Real World Properties, Inc. - Home of ForeclosureBusTampa!


Heath--good example of just what I'm talking about, which is why I feel it is important to "starve the cold, feed the fever"--the cold being media negativity and mis-information, the fever being those of us truly passionate about what we do!

I feel another blog rant coming on...

07/19/2008 03:07 PM by Real World Properties, Inc. - Home of ForeclosureBusTampa!


Jeff--I really like the idea of a pre-listing inspection, but have not yet come across that many sellers willing to do so.

07/19/2008 03:09 PM by Real World Properties, Inc. - Home of ForeclosureBusTampa!


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