21 Apr If it doesn’t tally it’s a tall tale
Our economy seems to be recovering, employment more stable, they say that the prices of housing are starting to increase and that real estate bargains are coming to an end, it’s time to decide to buy a house. Yes, I want to find my ultimate home for the next few years, this will be my big project.
The first thing I have to do is decide the budget I dispose of, including savings, available investments, mortgage capacity and my future income expectations. Now, what type of house do I want? I envision medium to long term and I estimate the ideal size. The neighbourhood? I like where I live now, I’d love to stay. How is the puzzle coming out? Will I be able to search for a home with all these conditions?
Besides the neighbourhood, size and budget, I think about a number of features I want the house to have and others that may not be indispensable. So far It’s all pretty clear but then a great doubt arises. How do I find my future home?
I think I might be able to find the time to look for and visit properties, but maybe they won’t be enough to make the right decision and then the process would be far too long, something that once I have made the decision does not serve my interests. The best thing would be to hire the services of a real estate consultant, either an agency or a real estate personal shopper, however, that has a cost.
A real estate personal shopper doesn’t have a portfolio, she looks for all the options available in the market, which is an advantage, but she charges a fee. Furthermore, she helps out throughout the whole process of purchase and installation but using her services does seem like a luxury. As in many other situations, the best thing one can do is maths. If it doesn’t tally it’s a tall tale.
A real estate personal shopper will charge me 1% of the final purchase price. If I negotiate first-hand I can easily avail a 5% discount on the final price. What discount would I get with a personal shopper? I find out, check statistics and see that the discounts on purchases made through external agents range between 5% and 30%.
Why do you get a better price when hiring a real estate consultant? Mainly, because an external negotiator will not get emotionally involved, thus losing all bargaining power, she will negotiate with the head, not with the heart. Her skills are proven: Convincing, influential, intuitive, psychologist, imaginative and good communicator. Besides, she knows how to ask the right questions, is analytical and gives off security when defending her position.
So it all sums up, hiring a real estate personal shopper will get the best price. My consultant fees won’t be an expense, they’ll be an investment.
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