TWENTY ONE years in the Real Estate Biz today.
I’ve gotten quite a few calls from people this year who don’t seem to have any “Street Smarts” about the value of money. Odd but true.
1) Had a buyer from out of state call me to complain that he made an offer on a house and a few days later he called the seller who told him he took an offer from someone else. The buyer was furious! I asked him how much Earnest Money he put down. He said NONE. He didn’t see why he should have to put up any money until closing.
Do you HAVE TO put down Earnest Money UP FRONT? No…no law says you “have to”.
BUT…Money Talks; Bullshit walks. An offer with NO EARNEST MONEY is…well, pretty darned easy to BEAT, don’t you think???
2) Was talking to an agent whining about POOR SERVICE from an escrow company. Asked him if it was the BUYER’S CHOICE of escrow. He said no, it was the bank-seller’s choice of escrow.
Did it close? YES! Was the service poor? YES! Why do you think the bank insisted on THAT escrow company? You don’ think they are paying the same as the average buyer or seller pays for escrow, do you?
Discounted Fee = “We will close it.”and they DID close it. They did what they were paid to do.
Money Talks; Bullshit Walks – WHY would you EXPECT to get the same service you “normally” get, if you agreed to the discounted service??? Pay less; get less. It CLOSED! You agreed to the discounted service and then what??? Wanted the better one? Get REAL!
3) Other people’s buyer clients are calling me. Had at least a dozen buyers call me in the middle of Real Estate Transactions this year.
ALL of them were having second thoughts about the value of the house they were buying. Worse…several others called me about a house they just bought!
a) They wanted my opinion of the price and value.
b) They ALSO wanted to know if I thought they were making a mistake buying that particular house.
c) They wanted advice regarding how to proceed in a negotiation of the home inspection. This relates to a) as they were trying to recoup at inspection mostly due to their 2nd thoughts about paying too much up front.
These are reasonable questions that my clients don’t even need to ask me. Why are OTHER PEOPLE’s clients calling to ask me these questions???
THERE IS SUCH A THING AS PAYING TOO LITTLE FOR A SERVICE!
NOTHING…IS TOO LITTLE. Seriously, having no one to second guess you is too little. You want someone who is going to say “Are you out of your freaking MIND? Do you know there are 75 sex offenders living within a mile of that house you “chose” to buy?”
I know how much is TOO LITTLE…because their clients are calling ME! Often when it is pretty much too late to do anything about it.
Saving Money is GREAT! I will often cut my price to the bone, because saving money is fabulous! But what I will not do is cut it to the point where you are going to get less than you need.
Lots of experiments with fees out there, and there is a LOT of room for lower fees. especially when the home price is over $500,000. But TOO LITTLE is usually not a good thing.
If you wake up in a cold sweat after your contract is accepted and want an opinion from someone you trust…and that person is NOT the person you hired. Well, then you paid too little.
Do I help the people who call me after hiring the wrong person? I think that’s against some rule or some law for me to do that…so I’m not telling. 🙂
Anyway…21 years in the biz. Didn’t want it to pass without saying a few words about some of the bullshit.
A special thank you to all of the many people who have hired me over the last 21 years. I appreciate the fact that you picked me, when there were so very many to choose from.