Does the real estate agent you use matter??

So it’s been a recent trend lately, it goes in spurts, that I find out a personal relationship hires another real estate agent to give their business to.  While I don’t take this personal and understand all the scenarios about personal relationships, family members etc. it occasionally throws me for a loop…and here’s why.

The irony behind people wanting to use their brother’s friends, neighbor’s uncle who just got their real estate license to do them a favor is that the new agent is doing YOU a disservice by allowing you to be sacrificed at the expense of their learning curve.  Now this is not true in all cases but don’t kid yourself, the other agent smells the fresh license and you will likely take the brunt of rookie mistakes without ever knowing.

When I first started almost a decade ago it still astounds me I was legally allowed to do business.  Real Estate school is completely irrelevant to the real world and only consistent transactions, good mentors and time will combine to make a quality real estate agent.

So this sounds great in theory but let’s put some teeth to it.  In my recent real world example I had a past client who decided to use a family member in their late 50’s who was “trying a new career path”.  This was a big mistake to which I will never reveal to them.  Here is the break down.

The new agent undervalued my ex-clients house by $10,000 minimum.  They had multiple offers on the first day, sight unseen and cash in a market and area in which this is no longer common.  Now fast forward to the purchase of their new home.  They offered list price on a house that was on the market for 4 months, needed work, was a rental property and had been listed as a rental but not filled in over 9 months.  Needless to say they needed to sell.  The cherry on top was that I knew the selling agent from a previous transaction.  They could have purchased this house for $11,500 less and all they had to do was ask.  The seller didn't even want to negotiate, just wanted it gone.

I know this because my past client called me half way through the purchase and had a ton of questions that his “new” agent could not answer.  I politely answered while listening to the above story.

So what did this mean to my past client…

$21,000 in money left on the table (probably more). Over a 30 year mortgage at 4.75% this will cost them almost $40,000 out of pocket….and they’ll never  know the difference.

I’m not here suggesting I know everything or that you should even use me.  Whatever you do stop and think about the decision you're make and handle it with the care it deserves.  It will likely be the most important financial investment of your lifetime.