In today’s fast-paced society it is common to question the need for transactional business, meaning paying for a service where the expert conducts much of the transaction for you. This was the case with the Stock Broker and the Travel Agent so what sets real estate apart from these two industries to explain why over the last ten years the number of Americans seeking Realtor assistance in a transaction has gone up.
The value in transactional business is with a high-cost transaction that is made infrequently. If you purchase homes on a monthly or even annual basis it may be worth considering you don’t need a real estate professional. The other consideration is cost, if the home you are buying or selling is a fraction of your annual income then the risk of a mistake in the transaction becomes less. Normally the people that fall into this description are investors who buy and sell their own investment properties. But what about the remaining 99.9% of the American population that do not regularly buy and sell inexpensive homes?
The expense of paying the transaction broker then substitutes for the risk of doing it yourself. Instead of risking all of your money in a home purchase where you have no experience you can expense a small percentage to pay someone else to take on the responsibility of avoiding the pitfalls you may not have seen. In many cases, a broker (or his agent) can save you many thousands of dollars, more than their commission, from mistakes or omissions that could have been missed.
In years past, a real estate agent would use their secret hoard of information to find you a home they believe fits your description and then show you a limited number of these homes to sell you on buying one of them. Their service was to introduce you to homes. In the world of the internet consumers are easily able to find the vast majority of the homes on the market and because they know exactly what they are looking to find are better situated to identify the best homes to then later view in person. There are many tools on the internet to help the consumer do this and the agent can help but is not nearly as useful as they had been years before.
Instead, today’s world is a litigious society filled with contracts, negotiations, and minutia of detail that require seventy-five hours of classroom education to begin to understand the basics of the transaction. A dedicated Realtor will also be a Graduate Realtor Institute (GRI) with approximately another 150 hours of classroom instruction. Add on top of this formal education the real world experience they have had buying and selling homes in the area and their value starts to become apparent in the transaction.
The way I explain it to my clients is I function as their Home Buying Concierge. It is my responsibility to orchestrate their way through the home buying process and navigate them to the closing table with as little turbulence as possible. Very often things will not go perfectly according to plan, but this is why you have hired me and I will do my part so you do not need to worry about anything beyond staying in communication with your agent and lender; that and picking a home