If you don’t have an experienced buyer’s agent working on your behalf you may be in for a roller coaster ride! In Tampa alone there are nearly 10,000 licensed agents (this doesn’t include Pinellas County Agents), it seems like friends of friends, first cousins and uncles all have gotten licenses, but did you know that about 20% of these 10,000 do nearly 80% of the real estate business?
The process you need to go through to get a license requires a lot of studying of general book knowledge. The problem is the book knowledge is absolutely NO substitute with actual sales experience.
Imaging getting an agent who has only had a handful of sales, or worse yet no sales. You are at risk of losing thousands of potential dollars in the real estate transaction.
You may ask how is that possible? Well think about it. You find the house of your dreams, a must have, so you just decide to make an offer of $240,000 on a house that was listed at $255,000. Was this a viable offer? Did the offer actually offend the seller because it was so low and sour the deal from the start?
If your Realtor hasn’t walked you through the pricing and supplied you with comps for the area then shame on them. Don’t fall prey to the online estimations. The online estimate programs carry fine print disclaimers of price variances in some instances as much as 10% (read the fine print). Net loss of the home of your dreams.
Let’s look at another scenario of how you could leave a huge sum of money on the table. Let’s just say that it works out on that deal for your dream house, you negotiated in the middle and executed the contract. Now the home inspection reveals some defects in the air conditioning. It’s old and out dated, but it was nice and cold when you saw the home… Did your agent point out that the air conditioning appeared dated when you saw the home?
Did he/she point out the sag in the floor or tell you to notice the cracked tile in the kitchen that would need replacing? Most agents won’t because they want the commission. A good agent, one that truly has your back will point out defects before we run out and spend $500 on a home inspection. So here you are, $500 in the hole on home inspection, $400 in the hole on an appraisal fee, $350 you paid for loan application fees…. And now stuck deciding if you want to proceed with buying a home with an air conditioner that could fail in the next year.
I have talked buyers out of homes because of flaws I have seen, not talked them into it. We as agents must do what’s right for our clients no matter the cost.
This is a learn by doing industry, as well as keeping up on current trends and contract rule changes. Using an agent with more experience only benefits you. Agents with little or no experience can be offered mentorship until they establish themselves in this business.
I took my licks, but surrounded myself with knowledgeable realtors who were willing to help guide me along and avoid making mistakes.