What the heck do I need a Realtor for??
My clients that I have been working with for months (I have shown them countless properties; we wrote and got an accepted offer on one only to lose it when we couldn't remove a subject to sale) wanted to write on a townhouse in Clayton. Shouldn't be a problem right? WRONG!
The owner of the townhouse tried listing the property himself first. He had it listed way over market value and he had no way of marketing it effectively. He of course realized eventually that he would need a Realtor. And he, like many others, assumed it would be only for MLS access.
So naturally, his listing came up in an automatic search that I had initiated for my clients now that he's on MLS. Here's where there is a problem:
He has listed with a cost saving Realty Company. The Realty Company is only offering a fraction of the commission that I would expect to be paid after all my work. I of course am disappointed but am true to my clients and show the property. (now we're not supposed to say this but I think its obvious that if you aren't offering a decent commission to the Buyer Realtor, they may not be motivated to show your property and thus you lose traffic AND money!)
This Seller has several issues:
1. He doesn't understand the market. His Realtor and I are in the market on a daily basis and know what values the property should have. Our experience allows us to know something he couldn't possibly. We have access to all the sold information and actives and can do effective market analysis.
2. The Seller is coming from his own personal wants and needs. He has it in his mind that he would like to make money on the property. Well who wouldn't, but when its all said and done - the property is only worth what a Buyer is willing to pay for it.
3. The Seller may not understand (despite the Realtor's advice) that he has been presented with a fabulous offer; clean with no subject to sale and fast dates and more money than recent solds. He however is stuck on a number that he simply wants and thus may lose a really good deal.
4. There seem to be some people that want something for nothing - this would be true of people who choose cost saving Realty Companies in my opinion. So often is the case that deals are lost because the client doesn't VALUE the services offered by a Realtor in the first place!
This is my fundamental frustration. As hard as I've worked to negotiate a deal on behalf of my clients who really want the property, and despite the fact that I'm going to be paid a fraction of the commission I would expect, the deal still may be lost because the Seller doesn't respect his own Realtor's advice.
Realtor's are held to the same duty of care as Doctors and Lawyers BECAUSE of the expertise and experience and liablitiy involved. Anyone can put up a sign and fill in some paperwork....but Realtors are researchers; marketers; networkers; liability protectors; negotiaters and service providers. We work long hours - we're on call every day - and we earn our commissions.
So why do you need a Realtor? Well, you don't if you don't care about closing a deal or finding the right home, or protecting yourself against possible liability...but if you choose to work with a Realtor, choose wisely and listen to their advice! That's what you're paying for!