So, I just purchased my first home. While I don’t live in a million dollar home, making this leap at the tender age of 23 was pretty significant to me. When I go home everyday, I have a feeling of some kind of accomplishment, sort of like a reward in life for reaching the next chapter. I consider it comparable to getting married. Even though I will not be in the house for an extended period, it still feels great!
However, throughout the entire home purchase process, I was always wondering why a real estate agent was present. This person was literally holding my hand on a bunch of things that I could do by myself. Since the agent is used by both the buyer and the seller, I will break this article into two parts, the buyer section and the seller section.
For the seller:
A real estate agent basically gets paid to fill out a bunch of paper work for you. So you’re paying a shitload of money to get someone to do something that you already know how to do. If you can read & write, or walk & chew bubble at the same time, then you do not need to get involved with a real estate agent. This will save a ton of money for the closing costs and eliminate up to 6% (or more!) of what you would be paying to the agent. Real estate agents are kind of like those annoying sales persons you see in a retail furniture store. They love to play with financing numbers to make it seem like you’re getting more for less. What does this mean? When you see a small number like 6% commission on a home closing for an agent, you’re probably thinking, “Wow, that leaves me with 94%!!” In elementary school, 94% might be an A or an Excellent sticker, but in the real world it represents $12,000 lost on a potential $200,000 house. Think about that. Do you have $12,000 to just give away for a week of work? Gosh, I wish I could afford to pay someone $300/hr to read and write for me!
Also, you’re probably thinking, “If I don’t have a real estate agent, how will I advertise my home?!”. This is very simple. There are 238497 free home guides online that will allow you to submit your home, a description, and several photos. But, DON’T be the asshole who only puts a text description with no pictures. This just tells me you’re hiding something or you’re about to waste my time. Have you ever shopped for something online that costs $100,000 with no pictures? Start with Craigslist or Oodle. MILLIONS of people look at these sites.
For the buyer:
A real estate agent will NOT go out of his or her way to negotiate the best deal for you. The higher the price of the home, the more commission the agent will make. Plain and simple. I don’t know a single person on this planet who wants to voluntarily give you money.
Also, on a side note, be careful when you are viewing advertisements online for houses as well. Another predator to watch out for are the “home flippers”. These are the people who fix up old busted houses by adding new appliances, etc. The BIGGEST red flag for these are the kitchen advertisements. Be aware if you see a house with 10 pictures total with more than four being different angles of the kitchen. It’s a known fact that most buyers are dumb enough to buy a house based on the looks of the kitchen alone. Basically, if you see a house that was built in 1965 with brand new stainless steel appliances listing for nearly the same price as a similar brand new home in the same neighborhood, think twice before you get ripped off. This is the same thing as a polished turd that increases in value.
In conclusion, we as buyers and sellers need to take advantage of our free market. There is no need to have some middleman have a hand in a place where it does not belong. Let these people (realtors) find other careers where they can contribute something better to society. Laissez faire.