Whether, you’re a first time home buyer or buying your 25th multi residential complex; YOU DON’T KNOW WHAT YOU DON’T KNOW. I could end this blog entry there because it is as simple as that. In real estate, I’ve personally lost tens of thousands of dollars not knowing what I didn’t know on my own transactions and I’ve seen millions lost with heavy hitters in the business. We all get too big for our britches at one time or another but a good investor knows this is true.
So, you’ve admitted it. Where do you go from here? First, find yourself smart people (experts) and surround yourself with them then listen to them. Identifying them will be harder than you think, since, most people have just
enough information to be dangerous and everyone including themselves is unaware until it's too late. A true expert has several qualities to look for. First, they are passionate about what they do and they don’t have another part time job. Second, their actions and words match. Third, they have experience which means they’ve had years of opportunities to make mistakes prior to your transaction. Next, how do you find these experts? The web and/or referrals. Some will have designations and some will come highly recommended. Some you can get to know simply by reading their blogs and unfortunately others won’t be who they appear. Always be weary of experts who don’t respect other's expertise and remember there is a difference between a salesperson and an expert. An experts advice does not change based on how much you spend and knows when to call in another expert.
You want someone that specializes in whatever your real estate need. Not a jack of all trades. These
wannabe Trump types don’t know what they don’t know either and unlike you and I still haven’t admitted it. You want someone who eats, sleeps and transacts real estate everyday, 24/7/365 in the specialty you need. Do you want a surgeon practicing on you? Then why would you let ‘Your Cousin Vinny’ sell you a home? Just because an attorney may have contract skills that doesn’t make him a builder or soil expert nor does the builder necessarily have his finger on the pulse of the market like an agent or the motives to protect your interests.
Every deal is different; just like every medical patient is different. A good agent knows their clients and their
unique needs. I tell my clients all the time that my experience is from mistakes I’ve made and/or seen others make and from surrounding myself with information in the real estate field daily, year after year.
Some are still thinking…..I can save the commission or expense of an expert. Maybe, but probably not and even then no one is advocating for you. You might save money on the front end of the deal but it’ll cost you on the back end. I’ve seen it happen more often than not. Sometimes the mistake is realized immediately other times not until you go to resale. My question is, “Which problem do you wan to have?” Because, let me tell you a $40k mistake is hard to swallow. Real estate is a risk. It’s the safest financial risk you can make but it is still a risk. Who is helping you hedge that risk?
Experienced professionals you’ll possibly need in any given real estate transaction:
Buyer Broker Seller Broker Real Estate Attorney Pest/Insect Technician
Home Inspector Surveyor Structural Engineer Home Stager
Banker/Lender Insurance Agent Builder Architect
Enviromental Expert: Septic/Well/Soil