What the Public doesn't know about Real Estate

When I began my real estate career in 2004, I knew very little about how real estate worked.  I loved the idea of selling homes to individuals and families, but wasn't sure how you met clients or the details of a transaction. 

My first home purchase was handled mostly by my husband at the time, I just knew the Realtor showed us possible homes and there was a mortgage lender that asked for paperwork and then we got keys and a bottle of cheap champagne at closing. I wasn't even sure where we met this Realtor or how my husband found the lender or what it really meant to have equity and a mortgage payment. 

I guess for some people that level of real estate knowledge is just fine and for others, its completely unacceptable when you are purchasing one of the most expensive items you will purchase or sell in your lifetime.  I didn't realize this at the time of my first home purchase in 1996 and I wish someone would've taken the time to inform me.

Here are the top 10 things I wish every Real Estate Buyer and Seller understood. 

1) NOT EVERY REALTOR IS CREATED EQUAL

Just like any profession, there are good ones and not so good ones.  In Washington, we are all Brokers and are required to complete more educational clock hours than other states. We are not however all Realtors. Realtors are dues paying members of the National Association of Realtors and are held to a higher standard. Realtors appreciate the designation because they take thier profession seriously and put time, money and effort into providing you the best service. Otherwise, you are just a real estate agent. And within those Realtors there are experienced ones that are organized, well connected, provide vendor referrals, know & practice the law & procedures and are able to negotiate on your behalf for the best outcome. Without these skills, you are putting your next home purchase or sale at risk. So, choose your Realtor wisely, ask questions and ask for references or recommendations. 

2) TALK TO A LENDER BEORE LOOKING AT HOMES

If you want to window shop do it online or attend an open house, but until you know your approved purchase price, monthly payment and lending options, it's a waste of time & a disappointment to look at homes you can't afford. You don't have to apply and have your credit checked in order to get advice from a lending professional, they can give you a rough estimate of what your payment will be at different purchase prices.

3) LISTEN TO THE PROFESSIONALS

When it comes to knowledge and advice, I always say, "Listen to the professionals".  Lenders, inspectors, vendors and Realtors know the ins and outs of homes, have seen many different scenarios and can provide insight that the general consumer just can't know.  It's tempting to be an online expert, but nothing replaces training, experience and personal insight. 

4) THERE IS NO PERFECT SPOUSE AND NO PERFECT HOUSE

Yes, I laugh when I tell this to clients, but it's so true.  Every home is a series of compromises, our goal is to find the home that fits the most and most important criteria in your search. Location or School district should be the number one thing you decide on before looking and then, beds, baths, style, age, square footage and amenities. You can easily change out finishes, carpet and paint, but it's much harder to change size and impossible to change location. Know what you can and can't live with in a home and a  spouse. 

5) CHOOSE A REALTOR AND WORK EXCLUSIVELY WITH THAT PERSON OR TEAM

Realtors don't get paid unless you close on a house and are independent contractors in the eyes of the tax man, so please be courteous of thier time. Call your Broker when you see anything you like and not the Listing Agent.  The Listing Agent represents the Seller, not you and is bound to work in the best interest of thier client, the Seller. Also, please don't use us to open a door for you and then use another agent to write the contract. Procured cause is hard to prove, but states if a sale is a result of their (Realtor) outreach and actions, the broker who is the procuring cause of the transaction is entitled to a commission.  It is better to just be honest with them if you decide to work with another Broker.

6) THE PERFECT TIME TO BUY OR SELL IS WHEN YOU ARE READY

It's true that there are seasons when I sell more real estate than others, but I've sold homes in every single month and holiday's are no exception.  There are so many factors that contribute to high end sale times and low sales; interest rates, political elections, school schedules, vacation times, holidays, Buyer vs Seller market, and location, but one thing I know for sure is that if you hold a property long enough, you will make a profit and gain equity when you sell. So, the longer a buyer waits, the higher the likelihood prices or interest rates will increase. 

7) WHEN YOU FIND A HOME YOU LOVE BUY IT

If I had a nickel every time I've heard, "I should've bought xyz house and now it's gone", I'd be rich! It is totally possible to find the perfect home on your first try and sometimes it takes awhile.  I think the clearer your vision  of your new home; the easier it is to find, so if you love it and it checks most of your boxes, make an offer. 

8) STRATEGY IS JUST AS IMPORTANT AS PRICE 

In speaking with many For Sale by Owner Sellers, I've discovered the number one reason they don't sell for what they want in the timeframe they want is lack of strategy.  There is a tried and true strategy for selling and buying real estate and while the basics are the same for all properties, there are specific details that need to be followed depending on that unique property.  I will say that with as many homes I've seen, I do have a sixth sense for knowing exactly how to successfully sell or write a winning offer.  See #3. 

9) YOUR BROKER IS THERE TO PROTECT YOU, NOT SWINDLE YOU

One of the most annoying misconceptions I've heard is that "my agent is just trying to sell me something like a used car salesman". Going back to that Realtor Association thing, we have a fiduciary duty to work in the best interest of our client.  That means if I have knowledge of a material fact, I am obligated to share that with my client.  If I notice a water stain, see prospective repairs, overheard another buyer wanting to make an offer, see a report or any other thing that could effect my client, I am bound to disclose it.  When I negotiate, I work in the best interest of my client to protect them. I encourage inspections and due diligence, I make sure the contract is valid and solid too. I know the rules and the laws that govern real estate in my state and follow them in order to protect my client.  I also tell them what they Need to hear, not what they Want to hear.  In a profession that is founded on referrals, it would nary do me any good to sell you a home that you didn't like or want and why would you sign that offer anyway? 

10) OPEN HOUSES ARE NOT THE MOST EFFECTIVE WAY TO SELL A HOME

There is a lot of debate on Open house and if they are effective or harmful.  Let's think about the concept, a sole Broker sits in a vacant house and waits for strangers to tour a home. There have been many incidents where the broker was killed, robbed or attacked because of this scenario.  Valuables, guns, kitchen knives and medications should be locked away and there should be at least 2 Brokers on site for safety. And then lets think about who is coming in the door.  Buyers that are not working with an agent, so we don't know if they are qualified or pre approved, we call them looky-loos. On the other hand one of those buyers could be converted into a qualified buyer with the help of the Open House Broker. More times than not that buyer won't make an offer on this home, but will start working with the Broker on site to buy another home. Win for the Broker, not for the Seller. Proceed with caution.

By Beth Phillips-York, REALTOR in Washington state since 2004