The Zen of Real Estate
Originally appeared in Hills Publications, February 28, 2003 and ANG Newspapers, February 22, 2003
Buying or selling a home is much more than the amount of money you pay or receive at the end of the escrow. It is also how you feel when the transaction is over. You will have either a satisfied sense that both you and the other party to the sale were treated fairly, or you will feel something less gratifying. The difference is often based on how well you were served by your real estate representative.
Being prepared for the process
High-level agents spend a considerable amount of time explaining the process.
As a buyer at the beginning of your search, you need to know how long it might take, what to expect, and how to become more educated about the market. Your Realtor should ask a lot of questions about what you want and why, and then prove he was listening by correctly summarizing your requirements. Getting loan pre-approval at the start is indispensable and you can look for counseling to that effect.
As a seller, you will want to know not only how much your property is worth, but what to do to maximize its potential selling price. A frank discussion of your home’s pros and cons and where it fits into the marketplace is essential.
Effective communication
Top professionals express the ins and outs of the business in clear language. They communicate well and often.
Buyers want to understand why one house is worth more than others; why there are so many contracts on one and not on another; and whether or not they are making a mistake in bidding, or in how much they are offering.
Sellers look to their agent to describe his marketing plan and to anticipate the best, worst and most likely selling scenarios. They need feedback on what potential buyers and their agents are saying. Sellers usually look for reassurance that they are doing the right thing.
Most importantly, buyers and sellers deserve the truth, even if it is not what the agent thinks they want to hear.
A young couple I am working with recently called me, excited about a house that seemed attractive and desirable. I had previewed the property and noticed significant defects, but I went back to see it again with them. When I explained my reservations, they were disappointed not to be making an offer, but grateful I had allowed them to make a decision with information they did not previously possess.
Determining condition
A capable buyer’s agent will ask numerous questions about the property, its condition, and why the seller is moving, well before you ever write a contract. For example, if the cute traditional you love was built in 1922, your agent should be asking whether the foundation has been upgraded. If it has not, there is a strong possibility your home inspector will find expensive foundation issues.
At that point, you will have to struggle with the seller about who will pay and how much. If you were in competition, one of the other bidders may be willing to accept the foundation “As Is.” This is a common cause of controversy and buyers do not always get the best advice in these situations.
On the flip side, a top-notch listing agent will recommend comprehensive inspections of the home before it is marketed. Once the condition is known, this can be taken into consideration in pricing. Just as important, your agent can help you get reports and bids on any problems. There is much less stress when difficulties are disclosed to the buyer before he writes an offer.
Working in your best interests
How someone deals with others on your behalf is the essence of being an agent. A large part of this is negotiating. It is an art and a skill at which some excel, and others do not.
When representing a buyer, a key step is getting the contract ratified. Sometimes, an offer that is not the highest in competition may be accepted because of the Realtor’s negotiating skills. Once in escrow, your agent’s job is to help you make sure you know what you are buying and, then, to get the escrow closed.
On the seller’s side, the point is to work for the best price and terms while being careful that the buyer has the desire and capacity to close the sale. When multiple offers are presented, the negotiating and analytical abilities of the listing agent are critical to an optimum result for the seller.
It is not a given that your agent will take extra steps on your behalf. Buyers and sellers often are not aware of what those steps might be.
Final Thoughts
Buying or selling a house can be pleasant. There are those in business, as in life, who are kind, caring, compassionate and competent. They believe in treating people with honesty and respect. Having one of these individuals representing you can be the difference between a frustrating or fulfilling experience.
Related Articles:
How to Buy Value
Protecting Sellers