Real Estate Agencies, Are They Friend Or Foe?
 

Many people would like to know if real estate agencies are there to rip you off your profit through their commission or if they are there to help you find your ideal home. 

Here is a short answer; “Pay unto Caesar what belongs to him.” 

You need to pay your realtor their adequate compensation for their advertising, time, effort and expertise in finding you or selling your realestate investment or home. 

I still use real estate agents all the time and would not dare try to close my properties privately unless something really big was offered for one of my holdings. Even in that scenario I would still consult with them to get a feel of the worth of the deal before proceeding with it. 

As a real estate investor you need to have all the facts in hand before committing what could be construed as the biggest blunder since you were born. I have lost money because I was trying to get a quick buyer and save on commission costs. I flipped my property through a developer the same year I built it because he convinced me that I was doing the right thing and he has many buyers. 

I had already contacted a local real estate agent and she came to me with an offer that was legitimate a month after I had closed with the buyer organized by the developer for a cheaper commission. 

I did the calculations, with the realtor’s buyer I would have made a profit of R30 000 ($3000) more than I made. And if I was even more informed like you are now I could have hired it out for another year to sell it at double my purchase price, which another investor advised me to do and I did not listen to him. 

If I had been calm and not in a rush I would have made more money and I would have not cheated that hard working woman out of her due. When you decided to enter this arena, you have to be clear that you will be a hard, smart and courteous real estate investor who will always retain control even when all hell has broken loose. 

To re-emphasize; I am telling you as your fellow real estate investor, get a few good and honest real estate agencies on your rolodex, let them compete to give you the best service and pay them their due on time and thank them.