As an engineer in the rocket industry and a 20 year veteran of the RE market (broker and mortgage broker) I sympathize with many of the views posted here. I entered the market thinking 95% of the agents were useless buffoons. It took a while but I found that there are a decent percentage of highly qualified and caring agents out there. Every industry has individuals who are exceptional at what they do…understand that real estate is no different.
One thing many here are missing is that no matter how much homework you do, if you screw up (and even if you don’t sometimes) you will likely be sued. One major reason that many people prefer to use an agent is for their Errors and Omissions insurance (which brings protection to you in the form of deep pockets).
Case in point. My architect knows real estate better than just about anybody I know. He has been designing very upscale houses under his own firm for 25 years. Last year he decided to sell his own home. He found a buyer and was able to close the deal quickly. Nine months later he got a letter from an attorney informing him of mold infestation that was discovered when the new owner tore apart a bathroom while undergoing a major remodel. Basically it was a trumped up charge of failure to disclose. He hired an attorney and decided to fight it as it would have been impossible for him to be aware of the mold unless he had gutted the bathroom himself. The buyers wanted $200K, after three months he was at $20K in legal fees and his attorney’s advised him to settle for $75K. All told it cost him $95K…a very hard pill to swallow (BTW: the house sold for $540K).
As this market continues to turn south (yes.. I am a bear) more people will become upside down in their homes. Folks that bought near the peak will be looking for any way to maintain ownership and suing the seller is easy pickens. Knowing what I know I would never sell real estate in today’s market unrepresented.
