Many of us, Realtors® included, try to be the the DO IT YOURSELFER, relying on own skill sets and knowledge. How often do you say, "I dont need a Realtor, or Lawyer, or Mechanic, or Contractor, to help me with this deal: I CAN DO IT MYSELF!"
The truth is sometimes you can, sometimes you can't; sometimes you can but only in a half-assed way that ends up costing you money in the end. I call this LOSING MONEY TRYING TO SAVE IT.
The other day one of my long time clients who has sent me a substantial amount of business called me up with a question.
He wanted my opinion as to whether or not he did the right think in bailing his daughter out of foreclosure by paying over $10,000 to halt proceedings against her property.
First I asked him how much his daughter owed on the property and what the address was.
A simple peek at comparitive sales told me his daughter's house was worth FAR LESS than the amount she owed.
Second, I asked if now that his daughter has been made whole again, will she be able to continue making timely payments? He doesnt think so.
Well - her credit was already all screwed up so his bailing her out didnt repair her credit. Now that she is whole again its highly unlikely that she will be able to continue to stay that way ( oh, and she has an adjustable rate loan that hasnt seen the worst yet).
HOW COULD HIS PAYING OVER $10,000.00 TO SAVE HIS DAUGHTER FROM FORECLOSURE THAT WILL LIKELY HAPPEN ANYWAY BE A GOOD DECISION?
I understand he is her father. I understand he wants to help. I just wish he had contacted me before he made this decision. This man is in his 80's and is by no means wealthy. It looks to me as though all he did was buy his daughter some time. Had he come to me BEFORE he made this decision I am confident we could have figured out a better solution to the situation.
A phone call cost you NOTHING and I doubt your Realtor© will charge for listening. Advice for a situation like this is FREE.
Don't always try to rely on your own knowledge and limited understanding. IN A MULTITUDE OF COUNSELORS THERE IS SAFETY.
Consider consulting with others BEFORE you make those major decisions.
© Randy "Lazarus" McAtee
ps... This client once called me and told me a friend has a house he wanted to list and asked me to contact his friend right away, which I did, and got the listing. Right after I listed it he told me he knew of someone who was interested in buying the house, gave me his phone number and asked me to call him right away, which I did, and he bought the house. (Isnt that the kind of client we all just love?).