Are You Better Off Buying Through A Realtor Or On Your Own? Part II
Another fundamental misunderstanding that buyers may be under is that the fastest and best way to arrive at the most favorable purchase price is to severely lowball the initial offer. That is a typical "rookie mistake" and telegraphs to the seller and the seller's Realtor that the buyer does not have a grasp of all the factual information necessary to negotiating a fair deal. In many cases, the initial pitch of an extremely low opening bid offends the seller and polarizes the course of negotiations from then on. The seller may then become inflexible or simply feel that they are wasting their time and walk away. If a buyer is represented by a consummate and skillful Realtor, a meticulous analysis of the dynamics of this particular transaction will result in the formulation of the optimal strategies to obtain the best possible deal at the end of the negotiations while minimizing stress, confrontation, and most importantly, the buyer's time and money.
An indispensable prerequisite to a successful transaction is for the buyer to be intimately familiar with their obligations and rights as clearly delineated in the Offer To Purchase. If the Offer To Purchase contains incorrect assumptions as well as clauses which are imprecise or are missing outright the resulting transaction is invariably doomed. Even if the Offer To Purchase has been drafted to the highest level of current standards within the real estate industry, insufficient comprehension by the buyer of how that document affects the purchase of the property unfailingly leads to mushrooming costs or a voided contract which can often lead to expensive legal action.
A professional Realtor can go through the Offer To Purchase in precise detail to ensure that the buyer is fully cognizant of the exact terms they are signing, and that they are willing and able to fulfill the legal obligations under that contract. The Realtor fulfills this responsibility by the provision of necessary, accurate information at every step of the way. Having this invaluable resource at the fingertips of the buyer perpetually provides for sound, logical, and correct decision making.
Many buyers don't get their financial situation in order before house shopping, thus look at properties that violate the buyer's bounds of affordability. A Realtor can use their years of experience and reciprocal contacts with mortgage financing professionals and lenders to steer the buyer to the best arrangement which best suits their economic capacities.
Buying a home is an emotional time for many and thus they may decide that they want to do the entire process "their way" rather than listen to the advice of a Realtor and that is usually a very costly neophyte error. When you have located a Realtor with years of professional expertise and a profound understanding of the dynamics of the local real estate market in its entirety, why would you then want to override their advice with your own ideas which may be half-baked and almost certainly going to cost you vast sums of money? It's like going to a doctor to get a prescription and then throwing out the scrip and buying M&Ms. They may be tasty, but they're certainly not going to do anything for your ailment!