It's like a bad tattoo - the costs of not using a broker
You try to save a few bucks, which is what got you in trouble in the first place. You consider taking care of it yourself, but just don’t have the tools or knowledge. The clock is ticking and you need to make a decision.
You have a difficult time with the cost of hiring a professional, but in the long run it will be well worth the value.
A bad tattoo or the sale of your property--it pays to hire a professional.
I’ve seen the decision made several times by property owners to go the low cost route only to have it backfire.
A restaurateur’s business is struggling and has his property on the market with a broker at a discounted commission whose efforts unfortunately reflect the same. The property has been on the market for almost year, and the listing is now expired. I brought a bona fide buyer to the table, but the restaurateur will not pay me what my services are worth so the property sits and his burn rate continues.
An owner is marketing his industrial property himself and even though I stumbled across his “for lease” sign and brought him a tenant he refuses to pay a commission. The property sits for lease as he continues losing thousands of dollars a month in rent...more than my commission would had been.
An owner places her multi-million dollar vineyard estate on the market without a broker and facilitates the tours herself. Her emotional tie to the property creates uncomfortable situations with some of the buyers. One of the tours with me and an interested buyer went sideways when she unknowingly misinterpreted a few things about the area.
Some feel real estate brokers are paid too much. I would say they are paid for what value they add. The majority of brokers are worth their fees. I bring to the table over 24 years of experience and knowledge. After many years in the field I can see the nuances to a transaction that may have a financial impact or avert potential legal issues.
Real estate transactions represent hundreds of thousands if not millions of dollars and are complicated. Knowing all the factors and how each interact is a learned skill. A novice can easily make a poor decision, expose their negotiating position, leave money on the table, overlook significant items to disclose or miss the mark with marketing.
These all have financial ramifications exceeding the cost of commissions.
You may have a transaction that seemed easy: short time on the market, smooth negotiations, no issues during due diligence, financing went through without a hitch and inspections were straight-forward. So, you ask yourself, “what exactly did my broker do?”
Would not that be exactly why you hired a broker? The knowledgeable and experienced broker added value to your transaction in ways you were not aware thereby giving you peace of mind.
You may never know what may have happened if he was not involved as sometimes things are not as visible as a bad tattoo.