Do I Really Need A Realtor?

As a Loan Officer, I'm usually asked or told:

1. "Why do I need a Realtor if I can find things myself?"

2. "How much will a Realtor cost me?"

3. "The seller said I can get a better price if I don't use a Realtor."

1. Not everything is found online. The Realtor database is larger than what you find online.

2. In almost all cases, as a Buyer or Renter, the Seller or Rentor pays the Realtor fees.

3. In almost all cases, the seller will sell the house to you for more than it is worth. The small percentage of commission paid to the Realtor will help you 10 fold when it comes to making sure you are not paying too much or buying a house that is not worth buying.

Here's a story of how a person almost lost a lot of money by not using a Realtor:

My niece wanted to rent a house. She was 22 years old at the time. She called me up and said, "Hey, I found a nice little home all on my own and I'm getting ready to sign the contract. Should I pay cash or check for the deposit?" My response: "Did your Realtor read the contract?" She said, "No. I don't need a Realtor because all these contracts are all the same anyways." The contract's stipulations read: Must pay cash (no checks/debit charges allowed). Money to be paid to an individual instead of a company. No one allowed in the home at any time except the person on the contract (no exceptions). No pets allowed (she has 2 cats and a dog). No more than 1 car parked in the driveway at any time (there is no garage/carport).

She dodged a bullet by calling me. She was fortunate that someone in the family had a rental history background. Unfortunately, not everyone has a family member in the industry.

As rental properties become more popular, scammers become plenty and they become aggressive on feeding on the easy prey. I can't find a statistic of how many people are scammed every year on rental properties. Just search the internet on "scam rental" and you'll see hundreds of different scams going on that take money from people all the time. One simple phone call to a Realtor can save you a big headache and avoid slimming down your wallet.

Here's a story about someone who failed to use a Realtor and lost money:

A few years ago, a friend called me stating that she paid a person $500 over the phone to rent a place out that didn't exist. She never looked at the house because she was in another state at the time and needed a place to live. She believed the person was genuine and she got scammed. 

I hooked her up with a Realtor to help her find another place.  That same Realtor that helped her find a rental property also helped her find a home to buy a year later. She learned her lesson about making sure she hires a Realtor to ensure she is not getting scammed. The Realtor also got referrals from the new home buyer since she did such a great job helping her during a rough time in her life. 

Here's a story of how the same person used a Realtor and avoided paying thousands of dollars $$$$:

A year later, my friend called me up and said she wanted to buy an investment property. She told me at the closing table that she was glad she went to her Realtor because the first house she found was being sold by someone who didn't own 100% of the house yet (seller going through a divorce). Imagine going to a closing and the future ex-spouse is unaware of the house being sold?! The second home had siding made of Georgia Pacific wood that tends to rot with excessive moisture. She mentioned that her Realtor was very well trained in knowing which type of siding and plumbing had recalls. "She saved me thousands of dollars!"

There are a lot of other reasons why Realtors are needed and the list is far too long to cover, so I'll focus on the ones I've encountered that were most impactful over my years in the industry:

1. Reading and explaining contracts
2. Ensuring contracts are written to protect the buyer or seller
3. Assisting the buyer or seller in extending closing dates
4. Ensuring a termite bond is done
5. Making sure the seller is the owner of the property
6. Making sure the home's construction is not on recall and if so to ensure it is addressed
7. Checking to see if property values will increase/decrease based on the property location 
8. Checking availability of a home 
9. Ensuring the safety of a buyer by going to the open house with the buyer
10. Ensuring that a buyer has been pre-qualified if using a lender
11. Helping the seller get the most out of the home's value by making suggestions
12. Showing property for a seller who has to work all day
13. Ensuring that the seller is not taken advantage of when negotiating selling terms
14. Ensuring that the buyer is not taken advantage of when negotiating buying terms
15. Making sure that the buyer doesn't buy a money trap
16. Making sure that fraud is not happening during the process of the purchase or sale of a home

As you can see I'm not covering a lot of other reasons for having a Realtor. Just imagine entering a court room to defend yourself and the only knowledge you have is what you learned on the internet. If you believe everything you read on the internet, then good luck in your trial.