The Risks of Using a Poorly Qualified Real Estate Agent – or No Agent at All!
I live and work in North Atlanta and find it sad that Atlanta ranks third nationally for Failed Buyer Transactions and the total percentage of failed deals for 2016.
The 10.4% quoted in Trulia’s report is an outrageous number of fails – clearly, someone does not know what they’re doing. This report highlights first time buyers as the largest group affected, however the fails also include a significant number of fails by experienced move-up and even luxury home buyers.
I find it interesting that no data was put forth on what percentage of these buyers went into the deal on their own without the help of an experienced buyers agent, but I’ll bet it’s a significant number. Lately I have seen industry reports citing a growing number of buyers (in all price ranges) getting into dual agency situations by trying to buy real estate on their own, often with a poor understanding of what was happening as problems occurred.
Apparently an increasing number of buyers are dealing directly with the builders or sellers listing agent on their own and that is of course risky, but since buyers agents are free, and no money is saved by trying to represent yourself, it’s a pointless undertaking and shows a lack of understanding about basic real estate in general, and especially how Buyers can protect their own best interest!
Too many buyers “do a little online research” and assume they are market experts and can handle a purchase transaction on their own, but in my experience, even experienced buyers lack important skills. A big difference is most experienced buyers recognize that they don’t know what they don’t know, and hire an agent. Those who do try to go it alone, are in my opinion (*and the GA Court Systems opinion) being irresponsible, and bear real risks that they may have little legal recourse when things go wrong – even if “they feel” another party did not enlighten them or look out for them. *Since 2000, GA Courts have held that if you enter into a real estate transaction without adequate representation, you are on your own, and absent provable fraud, most complaint cases will not move forward.
Appraisal issues and home inspection problems have always been two major areas that derail deals. While very few agents know how to spot building and structural issues and warn their buyers, too many agents simply don’t do an adequate job justifying the sellers list price and the result is wasted time and money submitting offers the appraiser can’t justify.
CMA’s (Comparative Market Analysis) can help – if done right – but a better understanding of the appraisal process and how to properly value property would help both sellers and buyers by preventing seriously overpriced properties.
Major issues occur when properties are priced using the wrong square footage, and if you don’t understand how to measure a house and what counts as square footage, you really don’t know what the price should be.
As I have said for almost 20 years, there is no substitute for vetting agents and then hiring the most skilled Buyers Broker you can find.
To view the full report see Trulia
For Atlanta’s most experienced and comprehensive Buyer Representation contact me, Robert Whitfield 678-585-9691, and I will put my over 35 years of experience as a GA Broker/Owner, ICC Certified Building Inspector, and New Home Construction expert to work on your behalf to assure you see the best homes available, make a sound purchase, and get the best possible price and terms. My buyer clients receive more insight and information about three important aspects that facilitate really smart purchase decisions – the properties physical condition, micro-market conditions, and what a realistic price looks like – regardless of the sellers listed price.
I enjoy being able to provide buyers with the extra information necessary so they are empowered to better recognize the best home for them when they see it, and make better informed and confident decisions to purchase one home versus another, including when NOT to purchase a certain home! Part of my industry leading service includes straightforward advice when I identify any property (new or existing) that I suggest you avoid when conditions warrant and that call is in your best interest. There is no fee for any of these elite level services and protections – I accept the standard buyers agent fee all builders and sellers offer to any buyers agent in MLS.