R-E-S-P-E-C-T

I’ll start by admitting bias on the subject of this article.  I am, after all, a real estate broker.  However, I can also claim to have spent many years on the other side of the table; selling everything from bare land to industrial buildings and having to pay commissions on every single successful transaction.  In no way is this article meant to be a sales gimmick or to promote my business in any way; it is simply an expression of my honest belief based on my experience in the matter.

Hire a Realtor, but probably not this guy!

My origin for this topic came about one week ago, when my wife received a call from her father telling her that his neighbor was interested in selling her home and that we should come over to pay her a visit.  Having met and dined with the homeowner before, I was comfortable knocking on her door and letting her know that I would appreciate the opportunity to list the home for her, or at least help her in any way I could through the selling process.

I had no expectations, and discussed the issue with her in a very casual & non-threatening manner….. so her response surprised me.  “Why would I pay somebody for something I can do myself?!” she said, followed by “my son is very good at selling things, and is going to put it on Craigslist.”

Now, I have to admit that I have also questioned real estate commissions before, and whether or not a certain realtor has actually earned the monies collected at the close of a transaction.  I’m sure there are instances in which this argument is valid. 

I continued the conversation with little questioning and no confrontation.  However, as I politely said my “thank you’s” and “goodnights”, the only thing I could think of was that this woman was making a HUGE mistake.  Not by simply not hiring me, but with her stubborn mentality that she could take this on by herself.

It is a Realtor’s full-time job to connect buyers and sellers.  If you do your research, you should be able to find a good Realtor who has superior knowledge of local real estate values, laws, and other related topics.  They pay the dues, attend the meetings, and network within a community that allow them do their job efficiently.  They have access to information that will give you a strong advantage in buying or selling your home.  They will help you get your home in selling condition, suggest improvements, hold open houses, post signs, put out flyers, attend MLS meetings, research comparables, etc. 

If a Realtor’s commission is a great concern to you, I suggest you simply factor it into the purchase price or listing price of your home.  I can guarantee that you will not regret spending the money for the professional services and peace-of-mind that they will bring to assisting you in what has become a very complicated transaction process.  Who knows, you may just get lucky by putting up a FSBO sign on your property & posting a local Craigslist ad, but at some point along the way, you will regret not having a professional by your side to help answer the difficult questions that will inevitably arise in your real estate transaction. 

I’m not asking that you give your business to a Realtor (although I obviously recommend that you do), but I am asking that you give your respect to their profession and expertise.  It should also be noted that, more often than not, the commissions they collect are very much earned & deserved.  This is especially the case in the current market, which is flooded with short-sales and foreclosures that require lots of work and produce very little profit.  If your planning on buying or selling any kind of property, do yourself a favor; hire a Realtor!