Want to make a real estate agent (or any licensed professional) cringe? Begin a sentence with, "My friend said....." You've decided to buy or sell real estate and admit you know nothing about the process. Who do you go to first? Most go to their friends and depending on your friends you might gain an enormous amount of insight and/or a great referral source for a Realtor. However, at a certain point seeking their advice is a dangerous zone to enter.
Any expert in real estate will tell you every single real estate transaction is unique. No two are exactly the same. If you have a 'Realtor Friend' advising you this should be the FIRST thing they disclose since the law prohibits licensees from commenting on transactions they are not a part of nor privy to the details. Your friend's experience may not be reliable either. There is not a 'one size' fits all approach to any real estate transaction. Each one depends on and has factors affecting it based on local laws, terms, conditions, contingencies, location, price, Realtor experience plus negotiation tactics which vary greatly and are dependent on varying personalities.
TRUE STORY: A seller had a friend in another state that lived in a rural area and had one real estate transaction under their belt. The seller referred to this friend, as their 'Florida Friend.' Every single term from the original listing agreement, through the contract and up and until the day of closing the seller challenged, argued and bullied their way through; all the while consistently referring to this Florida Friend's input. Ultimately, the buyer and buyer's agent were fed up and began to play hard ball in return, thus, nickel and diming the seller in return. As a result, the seller created a negative and hostile environment based on 'opinions' that were not applicable in their transaction. Thereby, degrading, what was originally and should have been a 'picture perfect' experience. Whether, the seller realized it or not, the Florida Friend cost the them more than just serenity.
Once, you begin or are in contract do not assume your buddies tactics are applicable to your transaction. Do not assume every professional or party to your transaction is trying to take advantage of you or has ulterior motives since your experience is not correlating with your friend's. All of these people and professionals hold the keys to a successful transaction which is what you really want.
TRUE STORY: A buyer consulted with a friend about how to negotiate pre-agreed upon monies (seller concessions) during their initial offer to a seller. When the buyer advised the real estate agent of their negotiation tactics the agent told the buyer that it was not customary in this case and could cost the buyer a loss they would not be able to legally recoup. The buyer insisted on going with the friend's advice. Two weeks later, the buyer realized they gave up $2,000 needlessly based on their friend's advice. When the buyer asked the seller to renegotiate their $2,000 mistake the seller laughed and was in no way legally obligated to do so. Thus, the buyer, needlessly left $2000 on the table, or in other words, their friend's advice cost them $2000.
Moral of the story: some people have enough information to be dangerous.
TRUE STORY: A seller had a friend in another state that lived in a rural area and had one real estate transaction under their belt. The seller referred to this friend, as their 'Florida Friend.' Every single term from the original listing agreement, through the contract and up and until the day of closing the seller challenged, argued and bullied their way through; all the while consistently referring to this Florida Friend's input. Ultimately, the buyer and buyer's agent were fed up and began to play hard ball in return, thus, nickel and diming the seller in return. As a result, the seller created a negative and hostile environment based on 'opinions' that were not applicable in their transaction. Thereby, degrading, what was originally and should have been a 'picture perfect' experience. Whether, the seller realized it or not, the Florida Friend cost the them more than just serenity.
Once, you begin or are in contract do not assume your buddies tactics are applicable to your transaction. Do not assume every professional or party to your transaction is trying to take advantage of you or has ulterior motives since your experience is not correlating with your friend's. All of these people and professionals hold the keys to a successful transaction which is what you really want.
TRUE STORY: A buyer consulted with a friend about how to negotiate pre-agreed upon monies (seller concessions) during their initial offer to a seller. When the buyer advised the real estate agent of their negotiation tactics the agent told the buyer that it was not customary in this case and could cost the buyer a loss they would not be able to legally recoup. The buyer insisted on going with the friend's advice. Two weeks later, the buyer realized they gave up $2,000 needlessly based on their friend's advice. When the buyer asked the seller to renegotiate their $2,000 mistake the seller laughed and was in no way legally obligated to do so. Thus, the buyer, needlessly left $2000 on the table, or in other words, their friend's advice cost them $2000.
Moral of the story: some people have enough information to be dangerous.