With the buzz about how to sell or buy for less or by owner (FSBO), “discount” brokerages coming and going, and brokerages devouring other brokerages, I thought it worth a few words on the value of good representation.
First a primer on the real estate sales profession:
Sales Agent – licensed by the state to represent buyers and sellers in the purchase of real estate. They must complete required coursework and pass a licensing exam. The agent must hang their license under a broker to legally practice their profession.
Broker – completed additional coursework and passed a rigorous exam to be able to legally take on a larger scope of fiduciary duties that may include the management of a real estate brokerage with sales agents and staff under them. Attorneys may skip the Sales Agent exam and sit directly for the Brokers’ exam.
Broker Associate – licensed broker that hangs their license with a brokerage vs. running their own brokerage – that is what I am.
REALTOR®- a member of the National Association of Realtors (NAR). The term “REALTOR®” is a registered collective membership mark that identifies a real estate professional who is a member of NAR and abides by its strict code of ethics.
Here are what I think are the top 3 reasons why having professional, reputable, ethical representation in real estate is smart.
1. Less Risk Exposure – Buying and selling real estate in California is one of the most litigious activities you can engage in PLUS there is a lot of money at stake. Whether you are buying or selling, having a licensed professional guide you through the process, and the contractual obligations involved, will lessen the likelihood of a transaction canceling or ending up in dispute resolution. There is a reason some states use attorneys to complete real estate transactions!
2. Professional Negotiation – The #1 reason people don’t hire a licensed professional to help them buy or sell is that they think they will save money on commission. As highlighted above, working solo can actually make things more costly in the form of losing a good Buyer, Seller or property, thousands of dollars in deposits, inspections or fees and/or ending up in dispute resolution/court. It has been statistically proven that folks that sell or buy themselves or with “discount” brokers leave money on the table in terms of negotiating sale price, deposits, repairs, credits and additional terms that could contribute substantial value such as rent backs and time periods to carry out specific elements of the contract.
3. Full Service – Whether buying or selling, you want somebody that has your back from A to Z through the duration of the process and beyond! A REALTOR has a fiduciary duty to their clients- in simple terms: a REALTOR is bound by law to act in a client’s best interest. If for some reason they do not, a client has recourse. From securing vendors, designing strategies to purchase or sell, navigating through contracts, escrow, lending, etc., a REALTOR’s job is to protect their clients and guide them through what can be a complicated and risky process. And, once the transaction closes, you want somebody that is there for the long term to assist with any concerns or questions that may come up after the ink is dry…
Consider me your #1 resource for all things Real Estate! Household changing? Getting married (or divorced)? Time for a change of scenery or job relocation? Want to invest? Just send me an email or call 619-888-2117. I can help.