Words of wisdom....

Representation debate has simple
answer

By Rick Hoffman, President and Chief
Operating Officer, Coldwell Banker Residential Brokerage San Diego/Inland Empire

By creating an information bonanza, the Internet has revolutionized the way homes are bought and sold all over the world. As a result, many new forms of the real estate brokerage have emerged. Some of these models would lead you to believe that you don’t need an agent and that the process is not that difficult. A number of them even offer to drastically cut their fees. For an eager buyer or seller, the option may look too good to be true – and there is plenty of reason to be cautious.

It’s a debate that continues to rage on.

First of all, you need to consider the enormous significance purchasing a home has for your family. For most of us, it’s the largest investment we’ll make in our lives and one that has significant consequences. For this reason alone, it is wise to be represented by a professional who is involved in the process of buying or selling every day.

When I started in the real estate business, the contract to purchase a home actually fit on one side of a letter-sized paper. The contract was not complex but it did require some study to understand the obligations imposed by the contract. At the time, the price of an average home was less than $50,000 – I just dated myself, didn’t I?

Over time, the purchase agreement also continued to change and develop. When it got to three pages it seemed crazy. It became incredibly important to keep current with all of the legal requirements imposed by the expanding agreements in order to properly represent my client. Indeed, the contract has become an excellent reflection of the way that the role of the real estate professional has evolved.

Laws, disclosure requirements, hazardous waste, energy conversation retrofits, agency, homeowner association rules, CC&Rs (Covenants, Conditions and Restrictions), zoning reports, smoke detectors and many more things continued to expand the scope of the contracts – and the knowledge necessary to properly represent a client either from the buying or the selling side.

Today, the contracts plus addendums amount to more than a dozen pages. This doesn’t even take into account the disclosures, inspection documents, county addendums, escrow documents, title reports, homeowners association documents, CC&Rs and a whole host of other detailed and important documents that need to be read, understood and approved to finally get to the close of escrow.

You probably can get to the close of escrow without the advice of a professional agent. However, you really need to consider how much risk you want to assume and how important it is to you that you do it right.

It’s no secret that when you need to make decisions, you should seek the best people you can find for advice. With the median price of a house in our area at nearly $500,000, this is certainly the type of decision that would best be approached with the help of a knowledgeable professional.

We have all heard the phrase “penny wise, pound foolish.” When seeking your dream home, work with a professional Realtor® trained to troubleshoot and negotiate. You won’t regret it.