Some Common Mistakes

August 28, 2007 at 4:47 pm Leave a comment

For most people, a real estate transaction will be among the most financially significant actions they undertake in their entire lives. Given that, it pays to be prudent. Here are two errors I’ve observed in the past year.

Using an Out-of-Area agent to list your home for sale. In one case, a couple used one of their best friends who was an agent in Hollywood to list their Santa Monica condo for sale. The agent did not understand the nuances of location in the Santa Monica market. As a result, the condo sat on the market for months while the market declined and the Sellers finally accepted a much lower sales price than they would have had to accept had their property been priced accurately to begin with.

There is no substitute for on-the-ground experience in pricing and marketing a property. When you hire an agent, make sure that he or she has that on-the-ground experience where your property is located.

Using a Part-Time Agent. In the instance above, the agent was a part-time agent in addition to being from out of the area. As a result, the agent could not respond to buyers and other agents as quickly as he/she could have. Real estate contracts contain a clause that says “time is of the essence” and while this is always true, it’s even more so in a volatile and challenging such as we are experiencing right now.

Using the Agent Representing the Seller of the Home You Want to Buy. I’ve seen parties who are buying a property use that property’s listing agent to list their current home for sale in the hopes that will get them a better deal on the purchase of their home.

The duty of the listing agent is to obtain the best price and terms for the Seller of that property. For the listing agent to induce that Seller to accept terms from a favored client of the agent would be a breach of ethics. Beyond that, from a practical standpoint, the listing agent has a longer pre-existing relationship with the Seller. Either way you figure, counting on the listing agent to get you a better deal because you let him or her sell your own property in exchange is a bad proposition.

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Entry filed under: Tips.

Foreclosures, Santa Monica and more broadly Santa Monica condo market stronger than Brentwood’s

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