"I Effed Up" ...... Mr. X Regrets Not Using an Agent

I didn’t expect the answer Mr. X gave me, nor how fast he said, “I effed up, didn't use an agent”. At least he was honest in telling me; “I didn’t know what I didn’t know”. And I was honest in telling him; “now you do”. He described how a friend called and said a home in their community was coming on the market. They were told that the seller "already had interest and wasn't even going to list". This was one of the spots Mr. X wanted badly, so they jumped on it. Without a second thought, without contingencies, and without an agent. As he said, they now realize that a purchase of this magnitude should never be rushed or taken lightly. These are tough conversations and unfortunately, they happen often.

The Anti Agent Push

As the real estate market enters the first “post lawsuit” spring market, I expect we’ll hear more of this “get a better deal, don't use an agent” nonsense. It’s easy to see why buyers and sellers don’t value what a skilled agent offers. The MSM continues to imply that money can be saved by not using a buyer’s agent. Social and business media platforms can’t say enough about the wonders of AI, what can’t it do? Reddit is flush with “tips” and advice on how to not “get ripped off by agents”. LinkedIn is the home of self-appointed “disruptors and innovators” along with the well-known failed “discounters”. Top all of that off with the clown show that is the National Association of Realtors, and it’s easy to see why the value of an agent is suspect.

AI is not replacing a skilled, professional agent. AI is an asset, always improving, and does many redundant tasks very well. What part of a real estate transaction is redundant? Every single piece of property is different; every buyer, every seller, every contract, the economic conditions…it is the antithesis of redundant. AI still fumbles basic photo edits, check the eyebrows and buttons on the waitress in the image. AI has a case of foot, mouth, and hand disease (did you catch her hands?). Trust it with a home purchase?

The "internet" and lawyers are not replacing a skilled, professional agent. Whatever the question, sites like Reddit, LinkedIn, X....love the “a good lawyer will...” answer. Will they show properties? Analyze data? Write offers? Take calls at night and on weekends? Manage transactions? Deal with inspectors, lenders, appraisers, and more? Please, smarten up. Real estate attorneys like closing deals; it’s easy, profitable and they never leave the office. And go to the internet for answers? OK.....

Zillow, Redfin, discounters and the latest "thing" are not  replacing a skilled, professional agent. Those disruptors? The ones that lost hundreds of millions during the post pandemic rush and have over a billion in losses? The ones that sell leads to agents? The ones that kick back money to buyers and sellers? What smart buyer or seller is lining up to work with them? What level of experience will you get from someone paying for leads and/or giving kickbacks for business? Will they place their client’s best interests first or will they say “eh…I’m making squat on this, I just need them gone”. We know the answer to that, do you?

The Road (behind) Home 

Back to Mr. X, he learned about eminent domain. He’s learning about how roads are widened, about how easily that thick tree line becomes mulch, about how roads are constructed, and about external obsolescence and the adverse impact it has on value. He had absolutely no idea that this project would begin less than a year after purchase because he forfeit his due diligence. He's in a tough spot - figuratively and literally - if what he told me about the deal is accurate.

In the meantime commuters will love a bit higher speed and an extra lane each way. Wonder what Reddit and AI think about this?

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• buyer agents (4)
• buying a home (3)
• due diligence (3)