Many a buyer and seller has asked this question and many have made buying decisions that have cost them thousands of dollars and countless hours.

The following is one recent example:

 I received a call from a seller who wanted me to represent him in the sale of two condos, one which was a one bedroom in need of repair and rehab in the amount $15,000+- and the other, an efficiancy, which was in saleable condition each about the same square feet in size. As I learned more about the property I came to find out that there was a bank owned condo for sale in the same building twice the size of either of the two condos I was to sell for only $10,000 more in a better location in the building.

I ended up finding a buyer for the better priced bank owned condo and therefore took that condo off the market so that my listings were the only ones available. I ended up finding an unrepresented buyer that purchased the condo that needed $15,000 worth of work. This purchase amounted to the same price as the better located bank owned condo but was half the size of the bank condo.

I felt bad for the buyer because I knew that he was overpaying by 50%+ but my loyalty was to my seller client and I had a duty only to be honest to all parties but to represent my seller. This is only one story that is replayed time and again in the real estate business.

I have been in sales for more than 20 years and have negotiated nearly every day since then with all types of people and organizations I know the St Louis real estate market and sales contracts and forms and use them as a tool or weapon, as need be, to benefit my buyer or seller.

I don’t believe that any unrepresented person buyer or seller will stand a chance in negotiating against the years of experience that I or any other real estate professional brings to their client. I believe it is a disservice that many in the news media provide to the general public the idea that you don’t need a Realtor to sell your home. The message is taken out of context! True you don’t need a Realtor, but is it wise to make some of the biggest financial decisions in your life without the expertise of a professional, and worse yet, to compete against the same professional who negotiates in this space on a daily basis?   

The value of negotiating through a broker another benefit, that of having your emotions hidden. Have you ever watched professional poker players? Have you ever wondered why so many they wear those dark sunglases? It is because they know that the trained professional opposite them can read their emotions, facial tics, voice inflection etc. These are the same techniques that a trained real estate broker uses to identify how much you are willing to sell your home for or how much you will pay to buy a home. When you use a broker, the other party is rarely if ever sure about the extent of the brokers clients interest, unless there is an advantage in letting them know. Keeping the other party on a informational "need to know basis" can produce great benefits to a client.

The market has shifted and buyers are driving purchases so that sellers need to be realistic about pricing and use every tactic possible to draw in buyers. Without the experience of a quality Realtor buyers and sellers are taking a shot in the dark being penny wise and dollar foolish trying to sell their home on their own to save 5-7%+- commission while risking losing 10-20% on the transaction side. 

I suppose I could practice dentistry on myself as well but I think I will leave that to the professional just as I believe real estate buyers and sellers should seek professional help.

Best regards,

 

Nick Sepac

RE/MAX Midwest Group

Owner/Broker