A recent transaction reminded me of the importance of the job of choosing the right real estate professional before beginning the process of moving.
Whether you are selling a house and moving away, buying a house, or both, you had better ensure you have somebody who is well trained and experienced so that you do not spend too much money or end up in a really bad way.
You see, a survey last year of recent housebuyers showed that 80% were unhappy with their purchase within a year, and the majority of them expressed a need to have known more about the process when moving.
So let me share with you are recent experience with an agent who was not a real estate professional, and exactly what it cost her customer at the closing table.
Choose A Real Estate Professional
First of all, the reason that most house buyers end up unhappy is because they almost guarantee failure at the onset of the house buying process.
How do they do this?
They start by looking at houses instead of looking for the right real estate agents. Yes, plural (agents).
If you have a house to sell and a house to buy, don't you want the most professional specialist for each transaction?
The image on the right shows a boxing match between a phony and a professional. Prior to the match, when people placed their bets, each boxer looked the same (gloves, shorts, shoes, etc.). But once the fight commenced, it was too late to change the bet.
Buying or selling a house involves a lot of money, and your "bet" is the money that you have or plan to have invested in the house. Doesn't it make sense to first make an effort to choose the right professional to protect your investment?
Well, in a recent transaction that went "all wrong" for the other party, I suspect the buyer did not start out by choosing a real estate professional.
Overpaying For A Home
Our sellers hire us to sell their houses. Each of our sellers has their own motivation(s) for selling, and we customize our advice for each in order for them to attain the best results from their real estate transaction.
Often times, a house seller's primary need is to sell the house, but their very-close secondary need is to get as much money as possible for their house.
We have designed a process for our house sellers to know before they hit the market exactly what they should expect and how they should have us manage the negotiations. And in many cases, when they follow our advice, we are able to negotiate an "above market' sale for them.
This happened recently where we were working with a house seller.
A buyer came in with an agent who apparently "really" needed a commission check. The agent shared with us key information that allowed us to negotiate from a position of strength. Moreover, the agent was also slow to secure a complete agreement from our seller, which allowed another buyer to join in the negotiation process.
Instead of securing a house on a Friday afternoon, the agent delayed returning a counter offer until Monday morning, by which time another buyer had submitted a stronger offer. The first agent begged us to give her time to raise her buyer's offer again (which she did), and by the time the smoke cleared, the buyer had paid almost 8% more for the house than what could have been achieved on the day the first offer was made. Needless to say, our seller was very happy.
This buyer is living in a house which cost tens of thousands of dollars more than what really was needed. Imagine the furniture that could have been purchased with that money. Or electronic equipment. Or landscaping. Or just savings. The failure of the buyer to first hire the best real estate agent to help in the purchase of a house cost them at least two year's worth of appreciation on the house.
It doesn't have to be this way for you though.
As soon as you start getting the feeling that you might want to move, take the time to sit down with a real estate professional that can give you tips on today's market and the current process for selling a house and buying a house. With you doing this so early, there is no stress, no muss, no fuss. It's easy to take good advice when you are not emotionally attached to a house.
Just as in the picture above, it won't be hard to identify the phonies from the professionals if you take the time to conduct formal interviews. The phonies will talk about houses (the things that get you excited), while the professionals will first talk about processes (the things that save you money).
If you would like to talk to a real estate professional about your upcoming move, simply drop me a note and we will be in touch right away!