First of all never assume that a licensed sales agent or a licensed broker is a "Realtor®". There are many licensed agents that are not registered Realtors®. And this can make a huge difference to your real estate sale or purchase. It is important to understand that some licensed agents who are not Realtors® may be operating "on their own" with no local Realtor® board oversight. Worse, it is possible that a licensed agent who has no Realtor® designation was in fact barred from the professional Realtor's® organization due to a previous serious infraction or for misconduct (usually unethical behavior) or simply lacks the standing and recognition among their peers to meet eligibility standards.
Thus, there are many agents who have state licenses but do not meet the higher standards that only a true Realtor® has. When in doubt ask to see an agent's professional designation card or inquire with the office Broker directly. Having successful closings is all about know-how, perseverance and most importantly having a professional rapport and professional relationship with the other Realtor® who may be representing the other party. Cooperation and professional interaction according to established ethics and protocol is essential to fairness and a successful low stress closing. In other words, when Realtors® are involved in a sale there is recourse since all parties must execute according to established standards or face being reported and receive strict sanctions and fines. Trust me, few Realtors® will ever risk losing their designations or risk being "called on the carpet" by their peers for not conducting themselves professionally, competently and ethically.
But just these kinds of problems are often encountered when working with non-professionals or what we call a FSBO (pronounced "fizzbo"); or "For Sale By Owner". In these kinds of FSBO transactions the other party are usually rank amateurs and lack a certain savvy, tact, know-how and often have confrontational or emotional interaction styles. In this industry we Realtors® are connected with a lot of different vendors and services such as lenders, underwriters, inspectors, attorneys etc. So, we hear a lot of horror stories about what happens at some of these FSBO transactions. My advice, NEVER go it alone without at least a Realtor on your side of the table. If you attempt to do it yourself then you will be at risk for just about any kind of imaginable whim or lack of competence of the other party. In such a case your ONLY recourse is costly legal actions that can drag out for years. Realtors® on the other had will attempt to anticipate and amicably resolve potential issues and problems that are inevitable in a transaction well in advance of them escalating into legal conflicts. The well kept secret about Realtors® is that our best service is in managing all the problems and potential issues that always go on behind the scenes transparent to the parties involved. That services and savvy keeps the buyer-seller relationships intact and congenial all the way to closing and mitigates substantial risk of blowing a deal and ending up in court or losing deposits etc.
Also, the average buyer or seller has no concept about how much persuasion and pull we Realtors® have with all the various vendors, service providers and agencies that are involved in a transaction. Things never just magically happen in a home sale - it takes considerable behind-the-scenes pushing and prodding to get all the way to closing. We Realtors® know how to get uncooperative survey teams, or inspectors or mortgage lenders, insurance agents, or management companies or condo associations etc. to focus on doing their part of the job on time and up to standards. No, none of these others ever want to risk alienation from the powerful Realtor referral networks and being sidetracked from doing further business in our community by missing dates or doing shoddy work. Realtors® have enormous clout in the community and that works directly to your advantage by reducing costs and risks. FSBO's on the other hand are "one off" clients with ZERO clout or influence with anyone in the community. In fact, statistically, 85% of those who start off to sell by themselves (FSBO) or buy without representation of a Realtor® end up so frustrated, out of time and so haggard and tired that they end up working with a Realtor®.
Today's closings can be quite complex. Deals can and often do fall through at the closing table. Desired properties that you "thought" you had under contract can be sold out from under you due to improper execution. Poor communications or just plain old "dropping the ball" at any one of the many steps in the closing process can stop a deal cold in its tracks. You have no idea of how many mortgage lenders will not get the paperwork done in time or get the proper underwriting approval and botch a deal and irrevocably destroy buyer-seller relationships, trust and credibility. So, as you can see having a professional Realtor® with you at every step in the process will give you much higher chances of avoiding costly mistakes and having a successful closing or avoiding litigation and other problems
You need someone on your side to push, prod and orchestrate the closing process all the way to title exchange. Think about it - who "owns" the closing process if there’s no Realtor® involved and working for you? If you guessed "no one" you are correct. Now, ask yourself how comfortable you feel with the notion of trusting what is for many the single largest investment in their life to "no one"? Scary huh?
Bottom Line: Having a Realtor® on your side of the table as your personal advocate is really the only way to go.
Still not convinced and thinking of buying or selling on your own? Better check out what you are in for and the 200 or so Essential Realtor Services you better be prepared to do on your own.
