“He who represents himself has a fool for a client”- Abraham Lincoln
AM 570 Podcast
Column from The Wave
Finding a buyer when striving to sell a home is not a terribly difficult thing to do. Combined with the fact that many people hold real estate brokers in such low regard, people’s motivation when attempting to sell their home on their own is understandable. After all, why pay someone for an unneeded service, right? Well if your primary goal is to simply avoid paying a commission then I would respectfully suggest that your priorities are askew. Instead, a motivated seller’s goal should be to exchange their home for as much money as possible. Just because you avoided the expense of paying a commission does not at all mean that you got the highest possible price for your home. All it means is that you merely avoided an expense in the process.
The buying and selling of homes is an emotional experience; As a result, real property effectively has no measurable intrinsic value. On the other hand, true market value can only be learned and achieved after implementing a comprehensive marketing campaign. Unlike sellers and buyers, brokers shouldn’t be emotionally involved in the transaction. They mustn’t only be experienced marketeers, they must also shield their clients from this stress-laden process while being pragmatic problem solvers.
To effectively bring a house to market, a broker must deploy internet, social media, email and print ads, as well as phone calls, text messages and so much more. Limited exposure simply cannot produce the highest possible price. A For Sale By Owner seller could never know the true market value of their particular home, at that particular time, without first implementing an individual and comprehensive marketing campaign. If and when a FSBO seller gets to a closing table, all they'll ever know is that they just saved a commission.
The foolish mindset that the path to higher profit is simply through lower expenses is not only held by FSBO’s. Most brokers choose to grab a commission using few resources while some others are actually spending lots of time and money to justify their commission. The best brokers are also providing a valuable service. There are countless ways in which a deal can fall apart, or financially change, along the way and during the time between agreeing on a price and the closing. Again, it’s not all that difficult to find a buyer for your house, especially in a desirable market and when the mortgage rates are so low; However, achieving the highest possible price and actually closing the deal doesn't come cheap and isn't easy to do. Of course you can, and should, have an attorney guiding and protecting you. Remember though, attorneys and brokers have distinctive roles. Your attorney will ensure that you’re legally protected throughout the process and beyond. They'll put in writing the deal that you agreed to and coordinate the closing with the buyer’s attorney and their bank’s attorney. They'll also deal with any legal questions that may arise as a result of the title company’s search. When problems do arise during the contract period however, the broker often needs to once again bring the parties together to achieve their common goal. The broker holds the unique position that allows them alone to speak and meet directly with all interested parties including the buyer, the seller, their respective attorneys, the loan officer, the appraiser, the home inspector, etc. A great broker understands their role in the process and does whatever it takes to successfully close the deal each and every time. Lawyers cannot, and should not, attempt to do the broker’s job and neither should sellers.
