Real Estate Mistakes
That Cost Buyer’s and Seller’s Money
- Not using a specialized local expert
- Using a part time or new real estate agent
- SELLERS – Not properly preparing their home BEFORE selling
- BUYERS – Not have a PROPER pre-approval or proof of funds
I have been a full time real estate agent in north metro Atlanta since 1993 and I have to to be frank with you, not all “Real Estate Agents” are created equal. In our profession you get your license the day you pass the test. However, like any other profession, that alone does not qualify you to properly represent a client. It is both experience and time that do that.
Unfortunately, there is no apprentice program to help you learn the ropes with the guidance of a seasoned agent so during that learning curve you hope to not run into anything complicated.
Did you know that the average real estate agent sells 2 -4 properties and makes around $7k – $29k a year after expenses? Ask yourself who you want representing one of your largest purchase or sale transactions? When it comes to getting the best price and terms “Average” is not who you want negotiating on your behalf!
Let’s use an example of heart surgery. In the medical field even though all doctors are called “doctors” they ALSO have other very important designations, such as “Pediatric Doctor”, “Adult Medicine Doctor”, ENT (Ear Nose & Throat) Doctor, etc. Obviously there is a BIG difference between these different types doctors.
FYI: Did you know the “official” name for an ENT is “Otolaryngologist” Try say saying that 3 times fast! Now you know why they are called “ENT’s”
In addition, a Surgeon will be designated as a “Brain Surgeon”, “Heart Surgeon” Vascular Surgeon”, etc. These are sub-specialties and VERY important differentiation.
With that in mind (not to compare real estate with heart surgery), if you needed a triple bypass, although relatively common with a very high success rate, would you use a pediatrician? Of course not. Would you use a brain surgeon? Well they are a surgeon but still not the best choice! Of course you would us a heart surgeon.
Would you get the fresh new doctor right out of school or do you think you would prefer one that had a few years of “real world” experience under their belt? Do you want one that has an open schedule or the busy one that’s in demand?
Let’s consider something else, most doctors have privileges in multiple hospitals but do most of their surgery in one. They are familiar with the surgical suite, the nurse, the techs, the admin personnel, the hospital layout, etc. Wouldn’t it make sense to choose a doctor that was a regular at your hospital?
Let’s review each of the “Real Estate Mistakes
That Cost Buyer’s and Seller’s Money”
- Not using a specialized local agent: How can an agent get you top dollar in Roswell if they live in West Cobb or Lawrenceville? How can the educate buyers agents and buyers about your community? Plus, do you think they are motivated to drive that far to show you a house? Why aren’t they busy? Even if they are REALLY good and familiar with the area, given the choice wouldn’t you go with the local agent specializing in YOUR area?
- Using a part time or new real estate agent: Some transactions are smooth and easy, some are difficult. The problem is you can’t tell until you are in the thick of it! Just like a complication in surgery, if things go well then the new or part time doctor can get the job done… But what is something goes wrong? Who do you want standing over you with a scalpel in their hand?
- Sellers – Not properly preparing their home BEFORE selling: Not preparing your home costs you money, simple as that. Buyers want new neutral carpet and paint, they don’t want a discount or allowance to choose their own. If your appliances, roof or HVAC is old they will discount their offer according. By the way, the average buyer discounts about twice as much as the real cost. So the carpet that you can put in for $5,000 could cost you $10,000 in discounts if you leave it for the buyer. Plus it will sell MUCH faster (9 out of 10 buyers want a turn-key house).
- Buyers – Not having a PROPER pre-approval or proof of funds: In this strong seller’s market you have to be ready to buy and have your funds in place. The better qualified and financially strongest often wins in a multiple offer situation and we have a stronger negotiating position. See this post for more on this.