The uninitiated, ie, most consumers, think buying and selling a home is a piece of cake. You put a sign in the yard and an ad in the newspaper and Bingo! Buyers gaily appear bearing gifts in the form of full price offers...or higher. You select the one suiting your needs, and wait for the closing, merrily counting all the money you've saved by selling your home yourself!
Hmmm...if that's the case, why, even in a seller's market such as in 2004 and 2005, did 83% of all sellers still use a licensed agent? Look at it this way. Would you try to invest $250,000 - $500,000 in the stock market without asking a professional financial counselor for advice? Would you operate on yourself? On a more mundane level, would you try to tune up your own engine on today's autos?
In my book "Risk Hotline for Real Estate" (www.riskhotline.com) I offer hundreds of examples of how important a REALTOR(r) is when buying or selling a home or investment property. NAR, the National Association of Realtors, cites numerous studies showing that sellers actually save money using a broker. My book gives many examples, but two of the most important are setting and negotiating price and once your home is sold, negotiating repairs. Unspoken in most transactions is the broker's ability to help you avoid making mistakes (especially when buying) that may cause you immeasurable grief later.
Now that we're in a buyer's market once again, this is more important than ever. Buyers will try to beat you down on price, knowing there are many other homes available for them to choose from. Buyers always assume you can deduct 6-7% off the asking price since you aren't using a broker. Buyers want your home to be in mint condition when they buy...so they won't have those repairs to worry about later.
Everyone assumes the selling and buying process will go smoothly. My partner and I have sold just one home in the past 3 years with no repairs or heavy negotiating required. The opportunities for pitfalls are too numerous to mention, though dry rot, water in the basement or crawlspace, underground oil tanks, leaky roofs, mold, manmade siding, floodplains, hillside erosion, and radon are a few to consider.
Call your REALTOR(r). You'll be glad you did.
