Comments on: Real Estate Agent = Middle Man

By: Clinton Rushing

Clinton Rushing — Sat, 31 Jul 2010 14:08:49 +0000

I see advantages to both sides, however as an agent of upfront honesty – I have many fewer problems as a home inspector with presenting the truth to fsbo transactions than to transactions with real estate agents. Just my two cents.

By: Zac Davis

Zac Davis — Fri, 09 May 2008 22:04:34 +0000

There’s certainly no need for realtors so long as you cover all your bases. IF you make sure you cover everything up, you can’t get burned.

By: Kate

Kate — Thu, 22 Nov 2007 11:02:48 +0000

There is no need to contact any agent if you have full knowledge about Real estate field. I hope you guys are not aware of investing IRA into real estate. For you i have put some information related to it.

Investing money in real estate is much more beneficial and risk free than investing in stocks.

Following are the benefits of investing money in real estate:

-> Value of property appreciates over time with little or no risk of falling prices.
-> Real Estate is a solid asset whereas the value of stocks and other financial instruments
is determined by many factors outside of your control.
-> Investments in Real Estate can appreciate annually at a much higher rate than what
your clients can get by investing in stocks, bonds, and mutual funds

One can easily invest their IRA in profitable real estate without ever going to the bank(depending on the need and the total amount accumulated though) thereby
avoiding the costly loans.

By: Louisville real estate

Louisville real estate — Mon, 19 Nov 2007 19:26:38 +0000

I don’t think there’s anything wrong with using an agent as a middle man, it just depends on whether they can deliver value.

By: FSBOJane

FSBOJane — Mon, 19 Nov 2007 15:33:33 +0000

Well, it seems I’ve really struck a nerve with this one! The truth hurts, doesn’t it?

It’s no coincidence, IMO, that all the people crying out about the “need” for realtors are realtors themselves.

But Richard, your comment is just too much: a realtor is as important as a doctor or lawyer? What a stretch! I could spend a lot more time giving a host of reasons for why this is SO grossly untrue, but I think most people with common sense know it’s ridiculous. For one thing: think of the amount of schooling and training docs/lawyers go through and the rigorous standards to which they are constantly being held.

For now though let me respond to your six “reasons” that realtors are necessary, by giving my counterpoints:
1) You control who visits your house as a FSBO. You do not need to give your address in your advertising.
2) You can require potential buyers to be prequalified. (And BTW: realtors allow people to view your home regularly who are underqualified. Think open houses.)
3) Buyers hope to knock down the price in any situation.
4) A realtor doesn’t have negotiating power that a seller lacks.
5) In rare cases, sellers or buyers may need to hire attorneys. This is a strong exception. Companies like Buy Owner can refer you, without demanding the high commission.
6) Again, real estate is not as complicated as you’d like to make it sound. Doing a little research will show you what forms to fill out, when/how to fill out. And if you use a discount ad company, they’ll walk you through it as well.

I understand where you’re coming from, I really do. However, I cannot agree that realtors are necessary.

By: Seasoned Investor

Seasoned Investor — Mon, 19 Nov 2007 14:21:49 +0000

Good advice for some – Bad advice for most, mainly because of the legal interests involved. There are way too many FSBOs out there that will not disclose the imperfections of their home and a buyer needs to know what to look for…
Btw, what do you think Expedia and Travelocity are – they are middlemen! You think they provide their service for free?
We’ve seen way too many deals end up in court and buyers paying too much for FSBOs homes, to believe your black/white advice.
This market is so competitive now and a seller would have to be a complete idiot to sell without an agent these days.

By: Richard Johnston, San Fernando Valley Real Estate

Richard Johnston, San Fernando Valley Real Estate — Mon, 19 Nov 2007 08:36:23 +0000

FSBOJane,

I can’t believe you are comparing a Realtor to a travel agent and a staffing agency.

I consider a Realtors responsibility as important as an attorney, accountant, and doctor. It takes more than just finding a seller and buyer.

There are hundreds of documents to sign, disclosures, contingencies, and laws. You also have an escrow company, title company, home warranty, home inspection, mortgage, etc..

Yes, there are people who are successful in selling their home without a Realtor. And YES, there are people who win the state lottery too. But all too often, a buyer/seller will need the help of a professional Realtor to guide them through the process.

Now because you are a FSBO fanatic, lets take a look and see why a homeseller should NEVER sell their home without a professional Realtor.

Here the reasons:
1. Strangers visiting your site without an agent.
2. Strangers visiting your site who can’t afford your home.
3. Buyers hoping to knock down the price because their are no agents involved.
4. Negotiating with a buyer without any agents.
4. Seller fails to disclose defects of the home.
5. Seller and buyer get into an argument and both hire attorneys.
6. Proper documents required by law not completed.

Now…I can’t remember where I read this information but I think that 78-85% of FSBO’s end up listing their home with a Realtor. Also, for all you people out there who want to try to sell your home yourself “FSBO”, I suggest you take a look and see how many attorney line up your local yellowpages book.

If you do decide to sell yourself after reading the above, I’m sure you will also not mind representing yourself in court, helping your dentist pull your tooth out and throwing the book at any professional who exists in America because you can do it better.

By: Beachbum

Beachbum — Sat, 17 Nov 2007 04:24:20 +0000

I also am biased as a licensee, but IMHO anyone without NUMEROUS transactions under their belt is setting themselves up for the worst kind of problems if they DIY. At a minimum, they better have a competent RE Attorney overseeing the transaction. To make a blanket statement that agents “provide no tangible product” is simply insulting.

Sure, IF the property is free and clear, and IF it’s an all cash deal, and IF you at least know enough to complete a deed properly, and IF you are comfortable that the cash isn’t coated with a white powder, and IF you have properly disclosed ALL defects, etc. etc. etc… then yes, maybe an iniexperienced person can DIY.

By: Athol Kay

Athol Kay — Fri, 16 Nov 2007 23:40:05 +0000

Actually the more people that try and go FSBO the better in my opinion. It makes it a lot easier to find people that actually want to sell their house without time wasting social networking madness.

By: Jill Murry

Jill Murry — Fri, 16 Nov 2007 23:38:57 +0000

Realtors make the search easier because not everybody wants to or can commit the time to search for a seller/buyer. There is a demand and real estate agents are here to meet the demand.

By: Ron Park

Ron Park — Fri, 16 Nov 2007 22:19:56 +0000

My thoughts are similar to Rick, yet I do embrace the fact that the customer does have choices with discount firms (travelocities) and professional firms. It’s just a matter of finding an agent who delivers on value.

By: Rick Marnon, Howell

Rick Marnon, Howell — Fri, 16 Nov 2007 17:56:13 +0000

I am an agent and to not sound biased, but obviously I am for people using us rather than trying to sell on their own. I am somewhat impartial though because as long as the people are happy in the end that is the ultimate goal.

Rick Marnon, Howell
http://www.oaklandlivingston.com