dont D I Y

DIY or Buyer’s Agent?

We live in a DIY world. The internet has given us the possibility of learning the how-to’s, the directions, the schematics, and skills to DO IT YOURSELF. And while that is often an incredible way to gain skills and save money paying for someone else, sometimes DIY is not the way to go. Here is a list of not-so-good DIY ideas:

  • Surgery. Unless you are the only guy left stranded on Mars, or for that matter, stranded anywhere.
  • Tieing your home into Natural Gas Lines.
  • Building an electric fence around your yard with a bare extension cord plugged into an outlet.

Here’s a DIY Gone Wrong Video.

When it comes to real estate, people think they can save money by doing it themselves. Most of the time a seller is trying to do a “For Sale By Owner” so that they don’t have to pay a commission to a real estate agent. However, many “FiSBOs” end up costing the seller in added months of taxes, mortgage interest, poorly negotiated contracts, and below-market pricing because of poor marketing of the property. Or what is even more costly to a seller is the new trend of “i-buyers.” These companies come in and offer a price for the house and you have a contract without cleaning up, doing showings, or paying commissions. Sounds too good to be true. Well…They offer less than market value, they will then inspect the property and charge you for work to be done, and after all of the closing fees attached, you are worse off than paying a professional to add their knowledge and skill to the process.

What is stranger still is that buyers do not use an agent to help them buy a house. Why is this strange? Because the buyer doesn’t save any money on the transaction since the buyer doesn’t pay the sales commission in the first place. A buyer’s agent helps the buyer have the information they need to make a wise decision about a home. Typically, the buyer’s agent helps evaluate 5 factors in a home purchase:

  1. Effective Age of Roof and Mechanicals;
  2. Neighborhood market history;
  3. Neighborhood market forecast for resale;
  4. the Buying power of the buyer (how to write an offer that will be accepted);
  5. How a particular home compares with the larger inventory of homes.

For new construction, a buyer’s agent who has knowledge about #3 and #5 puts the buyer at an advantage when sitting down with a site agent on a job site.

So why DIY? when you can have a professional do it with you at no cost to you.

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