Sherman Oaks, CA
Evening on a Friday
Looking out at the Valley
I had dinner with a friend the other night. He works in another industry. We had a wide ranging conversation about what the actual value of an agent is.
He admitted that in selling, it might be the way to go... viz. to use a licensed professional. He could see the value there. The perception was that somehow that would be the way he would do it because he didn't exactly know what the steps were and whether or not he could get more money than a good agent.
Which brings me to speak about the kinds of buyers that are out there.
Many home sellers... think they can get more money for their home than a licensed professional could... maybe not only because they know about expired listings that do not sell, but because they weigh the cost of selling and the cost of the commission and it just somehow doesn't make sense... certainly they could get more cash by saving the cost of the commission, right?
My thoughts on this come from the persepective of now being a licensed professional agent, selling homes in Sherman Oaks and the greates Los Angeles area, and having done business and owned properties in all four southern California Coastal counties, Ventura, Los Angeles, Orange and San Diego.
My experience as an owner is with single family residences, a townhouse, a condominium or two, an apartment building, a commercial builiding, even being part owner of a lemon and a strawberry farm. With my first broker's guidance, I've been through most every type of situation in real estate.
I even was a for sale by owner before I got my license.
For me, the only way I got through it was with the benevolent help of my first broker. We've been friends since I was fifteen, and he graciously guided me through the process without getting paid.
So what of buyers?
In deciding to save the commission, the for sale by owner choosing to go it alone has only to ask a couple of simple and very important questions....
What is the major benefit to someone buying from them? Why would a serious buyer not use an agent, which costs the buyer nothing, and choose to deal directly with a seller/owner, and choose to not use that licensed professional agent with extensive contract knowledge and not see the over 92% of represented properties in the Los Angeles Real Estate market? Homes for sale in Sherman Oaks and Studio City are represented and Sold in the low to mid 90% range by Real Estate Agents for the last hundred years?
Could the buyer who goes directly to a seller/owner who is not represented by a licensed professional be trying to save that very same commission cost in the purchase price?
The other kind of buyer who goes to For Sale By Owners.... it's the investor, the shark.
I have some experience there but that's for another time.
Cheers and good weekend.