You Can Do It Yourself and Save Money
It may seem suspicious that a realty company would be telling you that you don’t need a realtor, but it’s true, not everyone needs what we provide. So, how do you know if you can buy or sell a home on your own, or if you should be working with a professional? Well, there is a simple answer, and a complex answer. The simple answer is, yes, anyone can buy or sell a home on their own.
Buying or selling real estate today is much different than it was even just ten years ago. Today there are endless resources available to anyone in the form of T.V. shows, blogs, vlogs, online videos, networking groups, and more. All of them geared toward helping people like you complete your own real estate transaction. And it’s great! The average person can access all the information they need to do it themselves and cut out the so called “middleman” (aka: realtor) and save money in all those fees we like to charge.
If you are like us, we had the exact same thoughts. The first home Jackie and I purchased was a horrible experience. We used the listing agent thinking it would be easier to have one realtor involved instead of two. That was our first mistake. What we quickly discovered was that this realtor was not acting in anyone’s best interest, especially ours. It couldn’t have been more obvious that his number one priority was his commission. He argued and even became angry when we wanted to negotiate the asking price of the home. Later, he refused to do things that we thought a realtor should do. Things like a title search, arranging a home inspection, and other important aspects. We were left to do it all on our own and figure it out for ourselves. Now keep in mind that this was quite a few years ago and much of the online information that is out there today, we did not have access to.
To say the least, the entire experience was stressful, and unpleasant. We were left feeling uncertain if we had done all the right things and wondering what we had missed or what we didn’t think about. After it was all done, Jackie and I seriously questioned why we ever used a realtor in the first place. We didn’t like the experience or how we felt. We thought buying our first home would have been fun and exciting. After all, buying a home is a big deal and a huge purchase, the biggest thing we had ever done. It was the home where we were going to raise our children and be a family. But the buying experience was a big disappointment for us. That’s when we decided that we could do it better ourselves and would do just that the next time we were ready to sell and buy our next home.
I’m sure there are many of you who can relate to this or have talked with others who have gone through a similar experience. It’s no wonder people don’t want to use a realtor. I mean, what’s the point if they’re not going to do anything except take your money? Hell, I’ll take my chances and keep my money, thank you!
Jackie and I decided we would complete our next real estate transaction on our own. Even though we had done much of the work on our own for our first home, we also knew that there was probably more to know about this…a LOT more. So, we began to learn. We read, we met people, we attended networking events, took classes, and so on. We absorbed as much as we could and what we discovered was…OMG, we have information overload!!! There were so many ways to approach any situation, any opportunity, and everyone was telling us their way of doing it. We were more confused now than we were before. We had so much information that we had no idea what to do with it, how to sort it all, or even where to start. As a result, we did nothing. There had been so much we didn’t know and now we knew just enough to question everything we did know. So, what we did was boxed up all our information and stuffed it away in a corner somewhere, never to be seen again. “We think we will just stay in this house forever, yeah, that’s what we’ll do.” Of course, that’s not what we really did, but that’s how I felt about it.
The other issue with all of this was that Jackie and I still had careers to work on, children to raise and a life to live. This whole idea of learning and knowing everything about real estate was consuming us. We didn’t have the time for this. We were basically back where we started…not wanting to use a realtor again, but still not confident enough to do it on our own.
Today isn’t any different. There is even more information, and worse, misinformation, out there and with that comes problems. It is entirely up to you to sort through all of it to determine what is current and up to date, what is false and misleading, what is useful and what is a ploy to get you to buy a product or service. With all this at your fingertips, what do you do? How do you process and sort it all? What do you do first? Who do you consult with? What’s right and what’s not?
Well, if you are like most people (us included), you go talk with the people you are closest to, your friends, family, and colleagues. You ask them what they think, and what they would do. And they will tell you, they always do. But what is their experience and how current or vast is their knowledge of your situation? It’s most likely very limited and narrow in scope.
This is a problem! We know, we’ve been there. We lived it and did it ourselves. Asking other’s for advice is really asking for their opinion, and the thing is, everyone has one (an opinion) and they are more then happy to share it. Have you ever noticed how the people who have no risk involved, no finances on the table, nothing to lose, are the ones who will tell you exactly what you need to do and not do? Has that ever served you and your best interest? I know it’s never done well for us. People mean well, but that doesn’t mean they are actually helpful. Quite often they can make a situation worse because they usually don’t have much more knowledge than you do.
Would you consult with your mechanic for advice on your health care needs? Would you consult with your doctor about what to do with a traffic citation you were issued? Would you ask an attorney how to fix a plumbing problem in your home? You probably wouldn’t do any of these, and if you did, you probably wouldn’t give it much value. So why do we do this with other people we know who work in completely unrelated fields? Just because we know them and like them, doesn’t mean they know the right answers to help us.
Realizing all of this was the tipping point for us. We became focused and committed to understanding this horrible beast called real estate. Both of us became licensed real estate agents and went to work as realtors. We learned and refined our skills and became really good at what we did. We had no distractions or other commitments. We were all-in and people loved us for what we were doing for them.
What we learned about buyers and sellers is that they don’t know everything they need to know, but they also don’t want to look unknowing, or stupid. They are also leery of seeking help because they don’t want to be misled or taken advantage of. Buying or selling a home can be an intimidating and even overwhelming experience. The reason for this is because we (you) are personally attached to the whole thing. You are attached to it emotionally and financially. The wrong decision can, and will, have long term effects on your life, your family, and your finances. You need to do it right, the first time. There aren’t any do-overs, and you can’t return it or get your money back if you’ve changed your mind. When you sign on the dotted line, you are committed and have crossed the line of no return. So, you better be damn sure about what you are doing.
We know now that, yes, you can complete a real estate transaction on your own. But, how can you be sure? Maybe the right question is, should you do it yourself? Only you can answer that for yourself. Here are some things to ask yourself and consider…
Number one; how many times have you bought or sold a home in the past? If this is your first, or even second home, it’s probably not a wise decision to do it yourself. Even though you may be armed with all the information you can possess, have you actually applied and used it before? What is your level of experience? It’s great to know how to do something in theory, but it’s completely different when problems arise, and trust me, they always do. None of us can predict what will happen and we can’t plan for absolutely every possible scenario. This is where your level of real-world experience comes in. If you don’t know what to do when confronted with an unexpected or unfamiliar problem, you may find yourself in a bad situation you don’t want to be in.
Number two; how recent was your last transaction? The average American statistically changes homes every seven years. Coincidentally, the housing market also shifts about every seven years. Meaning a lot (A LOT) changes in that period of time. What is the market doing in your area? Hows the economy? What are current rates? What laws have changed? What is your best financing option? What have you been doing to stay current since your last transaction? More then likely you have been enjoying and living your life, as you should, and the real estate market has not been a top priority for you.
Number three; what resources do you have? Buying or selling real estate is not as simple as going down to the local big-box store or going online to your favorite shopping site and purchasing the newest big-screen television (or something else). Once you find the home you want to buy, or a buyer says they want to put in an offer on your home, now the work really begins. It’s not even close to being a done deal. There is a whole list of things still needing to be done and any one of them can derail and kill your deal. You need access to resources for things like a title search, a property inspection, an appraisal, a CMA, and escrow, just to name a few. Do you have these resources already in place?
Number four; what happens when a dispute arises between you and the other party? How do you negotiate the situation? Who will determine who is at fault and who is right, and what happens to the earnest money? What will you do after the sale if there are problems with the home or the funds?
Number five; are you familiar with the area? How much time have you spent in the area where you want to purchase? What is the neighborhood like? What are the taxes and other government regulations? Is there an HOA? Who will be your neighbors? Why is the seller selling? What are future plans for the area? What you see today can change quickly because there may be plans to rezone for commercial use, widen a roadway or re-route a roadway. Will a school or some other large structure be erected in the near future? What about public utilities, are they in place, and if not, when will they be and how will that impact you?
Number six; If a realtor is involved for the other party, who pays their fees and commission? Also, who is responsible for what taxes?
Number seven; how do you know you are not being scammed? Seriously! This is probably the most important question yet. We have met people who thought they were buying a home from the owner just to discover they were scammed and gave away all their money to a con with no recourse. What about the buyer? Who is this person? How do you know the funds you are accepting are real? Scam artists are incredibly intelligent and creative people. This is their career…scamming others. And they are good at it. Really good! So how come you haven’t seen or heard anything about this? Well, who’s going to post about how they were ripped off and lost everything to a complete stranger who can’t be found again?
The answers to these questions are not black and white and most often are not as simple as you would expect. Also, these questions are by no means meant to be all inclusive of everything you need to know or should know about real estate. They are simply to spark your attention so you can honestly evaluate your own situation. If you are certain you have all the resources, knowledge, and experience needed to complete your own transaction, then you should do it. Why wouldn’t you? But, if you are apprehensive about any of it, well, then you need to consider that too. Remember, you have a lot riding on this and there are no refunds.
If you decide that you need someone to do this with you, who will watch out for your best interest, then that starts an entirely different conversation. Sure, you can use any realtor you want, but keep in mind, not all realtors or real estate agencies are created equal. I will share our next article on choosing the right realtor that fits who you are. Until then, please feel free to contact Jackie or myself, we will be more then happy to explore your situation with you and provide as much assistance as possible.
Jun 25, 2019
Authored by: Marcus N. Rice
Black Dock Realy, LLC
Cape Coral, Florida, USA