Why You Need A Real Estate Agent

Mortgage and Lending with Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, NMLS #138061 MMCD #1141

Why You Need a Real Estate Agent


     In today's world of buying and selling homes there are a plethora of viable options - online portals, discount brokers, pay-for-MLS services, and the old fashioned "DIY" method.  The traditional way of buying and selling real estate (hiring an agent) is still by far the most popular way, but by a shrinking margin.  That margin needs to expand.  Soon, and by a lot.


     Sure, you can see homes online.  You can talk to a builder and have their Why get a real estate agentrep guide you through the buying process, complete with discussions on options, financing, and title work, but without a licensed real estate agent, the question lingers: Who is protecting you?


     A recent closing brought a strained sigh of relief to one of my clients rather than the joyful demeanor that should accompany the purchase of a new home.  Why?  Because my client chose not to have a real estate agent represent him.  The decision nearly cost him 6 figures.


     My client was purchasing new construction, and long before I spoke with him, a contract was in place with a builder in Palm Harbor, Florida.  Along with the contract, the builder took an extremely hefty (large 6 figures, much greater than 20% of the purchase price) deposit from the buyer, and got to work on building.  

     I came into the picture pretty far along, just about 45 days from the closing date, with a bank statement loan product that the borrower needed (his previous loan officer that started the process had dropped the ball big time on this buyer), and from start to finish, the only word I could use to describe the process is STRESS.  And maybe FEAR.  The builder reps threatened the borrower nearly every day with the fact that if he did not meet his closing date, they planned on cancelling his contract and keeping his deposit.  


     Even after loan approval, appraisal receipt, and even failing themselves to meet the closing date (The CO was not approved on their own demanded settlement date!), the builder continued their threats.  I advocated for the buyer, dealing with 3 builder reps in heated discussions, and it was not a pleasant experience.  I have a good amount of experience with builders and buyers purchasing new construction, and even with that, it was a daunting task.  For an unrepresented buyer?  It must have been a combination of terrifying and intimidating.


     Real estate isn't always pretty.  A pretty or handsome little sales rep promoting a new construction community as all rainbows and butterflies can be a huge smoke & mirrors show, with the facade quickly fading once dotted lines are signed and deposit checks are in place - that friendly builder can turn into a money hungry monster, and the customer can quickly be made to feel like nothing more than a source of a pay day.  That's not what home buying should be.  


     A real estate agent does more than put homes into an MLS, or put you on 'autopilot' for home searches based on your wants and needs.  A good agent will be your advocate, your insurance policy, and your representative in making sure you never have an experience like my client just went through.  Unless they're an experienced investor with a real estate license (emphasis: a license AND experience), no one should ever be making a real estate purchase without professional representation.  Having a good agent can save you time, headache, exorbitant amounts of stress, and sometimes, a 6 figure deposit.  A builder, greedy seller, or savvy listing agent can take a buyer into what seems like war - don't go in alone.  Get yourself a real estate agent.



Thinking of buying or selling a home and don't want to go it alone?  Give me a call at 484.680.4852.  Chances are I know a professional real estate agent in your area that will provide you top notch representation.







Re-Blogged 2 times:

Re-Blogged By Re-Blogged At
  1. Debe Maxwell, CRS 12/14/2016 05:41 PM
  2. Ginger Harper 12/15/2016 05:48 PM
Home Buying
Florida Pinellas County Palm Harbor
The Lounge at Active Rain
Bartender, Make it a Double
real estate agents
new construction
real estate best practices

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Sharon Parisi
United Real Estate Dallas - Dallas, TX
Dallas Homes

Well said.   Navigating the process of purchasing or selling a home is  challenging.  An experienced advocate is an enormous benefit for a multitude of reasons.

Dec 14, 2016 10:57 PM #13
Nina Hollander
RE/MAX Executive | Charlotte, NC - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Good morning, John... I can't tell you how often I've had a call from a neighbor or past client's friends looking for help in resolving a post-closing issue or pre-closing issue on new construction with a builder. When I ask them why they don't ask their agent to run interference I get told "we didn't use an agent because we didn't thing we needed one." They find out how much they need one little too late.

Dec 15, 2016 03:59 AM #14
Eileen Burns
Trans State Commercial RE Ft. Lauderdale/Miami/Palm Beach - Fort Lauderdale, FL
FL Probate Agent, Hotel & Land Specialist

Fierce Warrior John Meussner ... glad you were able to save the deal!  Mortgage Brokers who effectively communicate throughout the transaction with all parties are saviours.  Well done and congrats on the feature


Dec 15, 2016 04:23 AM #15
Raul Rodriguez
Covenant Partners Realty - San Antonio, TX
Looking out for the client's interest and not my p

I once found myself handling both sides of a transaction because of the seller's refusal to hire an agent. I only received one side of the commission, but my buyers were happy. And to me, that was important.

Dec 15, 2016 04:51 AM #16
Sham Reddy
H E R Realty, Dayton, OH - Dayton, OH

Bottom line!!!

A good agent will be your advocate, your insurance policy, and your representative in making sure you never have a BAD experience

Dec 15, 2016 04:55 AM #17
Nick & Trudy Vandekar, 610-203-4543
Long & Foster Real Estate Inc 610-225-7400 - Devon, PA
Tredyffrin Easttown Realtors, Philly Main Line

John great post, especially as it is from you, not a licensed agent, it can sound so self serving when we as agents explain why people need an agent, but this is very well put. Thank you.

Dec 15, 2016 06:03 AM #18
Charlie Harrison
The Bluefield Group - Greenville, SC
Are you ready to buy or sell today?

Thank you for posting this. Having seen it from the other side, it helps keep agents focused on what's most important.

Dec 15, 2016 06:30 AM #19
Ron Aguilar
Continental Mortgage - Saint George, UT
Mortgage & Real Estate Advisor since 1995

I agree that those of us in the industry know the importance of an agent. We will always have the person that believes in the "do it yourself method." I see agents that call FSBO's and try to CONVINCE the person of the features of using an agent but they do not illustrate the benefits of using an agent. That can be done with testimonials from past clients. 

Dec 15, 2016 08:12 AM #20
Susan Jemison
Windwalker William Raveis - Nantucket, MA
Full-service agent serving Nantucket and beyond.

Great post John....

ANY real estate transaction that gets sticky can be so unnerving for a client.  I remember the worst experience I had was years ago, when a real estate attorney came in with a full-asking offer (in California) only to then utilize the home inspection to deep-down knit-pick every single problem nomatter how slight or even if it was only a potential problem.  It became obvious, when after jumping through many hoops, he wanted to put a balloon over my house to test air-quality (aebestos was present, but shown to be sealed).  My agent had no clue how to deal with him, and I was left to fend for myself.  It was horrible.  In the end I told my agent the deal was off the table and I wouldn't sell to him if he paid me more than asking with no contingencies (now that's mad!).  In the end, my home sold for fair market value to someone else, and with a different agent! Yikes!  That experience has stayed with me for all these years.  (This was in the late '80s.

Dec 15, 2016 10:18 AM #21
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Specializing in Brookside, Waldo, Prairie Village

WIth all the talk of driverless cars and drones ... I wonder if agents will ever be replaced!  Certainly our business is changing -- can't imagine what it will be like 30 years, or even ten years from now!

Dec 15, 2016 01:02 PM #22
Harry F. D'Elia
Real Estate and Beyond, LLC - Phoenix, AZ
Investor , Mentor, GRI, Radio, CIPS, REOs, ABR

Congratulations on your featured article. We are looking forward to the next one.

Dec 15, 2016 04:23 PM #23
Kimo Jarrett
WikiWiki Realty - Huntington Beach, CA
Pro Lifestyle Solutions

Almost all real estate buyers should have a professional helping them unless that have enough experience to do it themselves. 

Dec 15, 2016 05:57 PM #24
Patricia Feager
Selling Homes Changing Lives

John Meussner - Congratulations on a great feature story! I think every paragraph could be an info commercial or a T.V commercial! 

Thank you for writing such a great and honest blog post. The public needs to hear it more often and you have a way with words that are credible. If there were more Mortgage Lenders like you, it would improve consumer confidence. You are truly credible and the best!

Dec 16, 2016 07:35 PM #25
Patricia Kennedy
RLAH Real Estate - Washington, DC
Home in the Capital

Hi, John!  This morning, I included your post in Last Week's Favorites.  Hope you enjoy the rest of your weekend!

Dec 18, 2016 08:37 AM #26
David Alan Baker Laveen & South Phoenix Realtor
HomeSmart - Laveen, AZ
Your local Expert

Congratulations on the pick of the week, or picks by Patricia

Dec 18, 2016 03:33 PM #27
Mel Ahrens, MBA, Kelly Right Real Estate
Kelly Right Real Estate - Hood River, OR
Customized Choices for your Real Estate Needs

Hello John,
Buyers do not see the value until there is an issue.  The industry has to figure out a way to change the perception of value in the compensation model. Instead of a one size fits all compensation model, pricing needs to be tied to the actual transaction, specifically the complexity, and knowledge required for the services provided. The lawyer/surgery comparisons miss the pricing and transactional complexity in the situation. Minor surgery is priced differently than major surgery and is specific to the procedure (yes, it is still too high).  Real estate commission payments do not differentiate the service/knowledge levels for minor issues from major issues.  Same payment for a possibly wide variety of transactions.  What other professionals have a compensation model with a disconnect between the complexity, the knowledge required to perform services and the compensation received? The only way to change client perceptions is to provide transparency in the compensation model by charging for the true level of knowledge/services provided.  Until then, the industry will continue to try to justify compensation.


Dec 18, 2016 04:28 PM #28
Debra Leisek
Bay Realty,Inc Homer Alaska - Homer, AK

Hey John!  thank you so much for a great post.... you really put it all in good perspective!

Dec 19, 2016 01:37 AM #29
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

I can see why Patricia chose to feature your post this past week!  Great job!

Dec 19, 2016 07:37 AM #30
Michael Jacobs
Coldwell Banker Residential Brokerage - Pasadena, CA
Los Angeles Pasadena Area Real Estate 818.516.4393

Hi John -- this is a great post from the perspective of a lender.  Proper representation makes a difference.   Hopefully more will understand this upfront before being faced with harassment, bad information and threats.  

Dec 21, 2016 09:30 AM #31
Jan Green
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

You should have more comments here!  Seldom do lenders verbally go to bat for me and I do all of the above and more.  Thank you, thank you!  Going to boost this one on G+!

Dec 22, 2016 03:07 PM #32
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#MortgageMadeEasy Walnut Creek, CA 484-680-4852
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