Contra Costa, California Real Estate

I Don't Need No Stinkin' Realtor

A few days ago I was attending a meeting and struck up a conversation with a man who is house hunting to buy a home in Walnut Creek. He does his own research, he knows the school district where he wants his family to live and the individual API scores of those schools, he has driven through every neighborhood in the school district to determine the neighborhoods he likes the most, he's been tracking the average sold prices and days on market and he has signed up for auto-alerts on multiple websites.  He has definitely done his homework and said, "I don't really need a Realtor except to provide access to the homes and write the contract."

I stared at him for a moment in shock because this buyer's livelihood depends on the real estate industry so I expected that he, more than John Q. Public would have a better understanding of the actual work required of Realtors.

I took a moment to gather my thoughts and said, "On behalf of your Realtor, I want to thank you for utilizing all of the resources on the Internet to educate yourself.  This may come as a surprise but most of us are thrilled with buyers that take the time to conduct appropriate due diligence on their own behalf.  Acting as a glorified chauffeur has never, ever been the highest and best use of a professional Realtor's time.  It was a necessary service, nothing more.

For the sake of conversation, let's put aside my personal belief in the value of Realtors and let me ask you a few questions.

Do you know the questions to ask your mortgage loan officer to determine if your pre-qualification is valid or really just a pre-approval?

Do you know that the type of your mortgage financing could impact which homes you can buy?

Do you know the customary buyer and seller costs to ensure you aren't paying more than normal?

Do you know the Point of Sale requirements?

Do you know which seller disclosures are required by California Law and who is exempt?  If the seller is exempt, do you know the additional investigation that you might want to consider?

Do you know the difference between "passive" and "active" contingencies and how that lack of knowledge could potentially result in the loss of your earnest money deposit?

When you view homes, do you know what to look for that would indicate something should be professionally inspected?

Do you have a list of qualified professionals for Home, Pest, Roof, Chimney, Pool, Sewer Lateral, Geological and Structural inspections?

Do you have an additional list of qualified, licensed contractors who can competently complete the structural, health and safety items on those inspections at a competitive cost?

Do you know how to make a compelling request repairs from a seller who already feels like you "stole" the property even though you are paying fair market value?

Do you know appraisal requirements and is your internet homework sufficient that you could legitimately challenge an erroneous appraisal if needed?

When you write a contract, you will quickly realize that the majority of a selling agent's work starts when the contract is accepted.

I think the National Association of Realtors should change their ad campaign.  Rather than showing an impeccably dressed, well-groomed Realtor handing the keys to delighted homeowners, they should show the real work of our profession. The harried Realtor scurrying between inspection and appraisal appointments while on the phone following up with the mortgage lender and title company, arranging bids, badgering the HOA for the late documents, reading disclosures and negotating repairs - all within the tight contractual deadlines.  It wouldn't be pretty but would help dispel the perception of "easy job, easy money".