Whether you are buying or selling, the one question you will most likely ask yourself is whether or
not to use a Real Estate Broker. The most common answer to that is usually based upon cost. If
you are selling a home, you have to pay a commission. If you are buying, the commission is added
to the price. Using this logic the answer is clear-NO!
Unfortunately things are not often that clear and this time is no different. The fact is that
using a Broker whether you are buying or selling, will most likely save money.
Let us look at this more in depth and we will start with the SELLER. You would more than
likely save the commission if the price you finally sell for is the same that a Broker could have
gotten. But what if a Broker could have gotten another $50,000? If the commission that you
would have paid the Broker was $15,000, you actually LOST $35,000! Even if the Broker was
able to get you just $20,000 more, you still would have lost $5,000 doing this yourself. Of course
I am not saying that this is always the case. Sometimes sellers get lucky. Sometimes somebody
wins the Lottery. It could be you but what are your chances?
The reasons that a Broker can often get you more are many. One advantage that a Broker
has ovr a FSBO (For Sale By Owner) is neutrality. Regardless of whether the Broker is a Sellerís
Agent or a Buyerís Agent, he has the opportunity to look at your home without bias. He does not
assume your home is the best on the block or in the neighborhood just because you raised 3
children, put them through college and had wonderful holiday dinners there. He looks at the pros
and cons along with his knowledge of the current market conditions and the current sales to
determine real value. Another advantage of being neutral is leaving emotions out of the
negogiations. If a Buyer who is trying to get the price down says something derogetory about your
home, you would almost surely become an adversary and adversaries donít make deals! Also a
professional Broker can earn his fee several times over just by pointing out possible pitfalls before
they happen. There are many more reasons to use a Broker. Donít knock it till you have at least
spoken to one. The money he saves is yours.
And for you the Buyers, a Broker can save you money also by being neutral. If there really
is a problem or something that will need repair, he can present it to the seller in such a way that
the seller will realize there should be a price adjustment. A Broker will also be able to show you
homes that will fit your requirements. How valuable is your time? Do you really want to spend
hours or days looking at homes that are not only never going to sell at market value but also do
not come close to the description in the ad. Remember that an owner put dollar value on
memories. A Broker can help get you a fair price simply because he knows what a fair price is and
he knows how to present offers to sellers without making you the Bad Guy. Most Brokers can also
help you find the best mortgage for you and will be able to answer your questions professionally.
Remember that your Broker has most likely negotiated hundreds or thousands of homes and that
experience can save you tens of thousands of dollars. He may even have negotiated the home
you are intersted in and knows what you need to make your dream home a reality!
For some buyers and sellers, a one time bad experience may lead you to believe you made
a mistake by using a Broker but think about this. If you took your car to a mechanic and paid to
have it fixed but he botched the job, would you try to fix it yourself or find a better mechanic.? You
made the right choice but picked the worng mechanic-try another!