$ Realtors can make you Money $

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1.1 Sellers generally have no specific knowledge of how to complete a contract for the sale of the property and will get an attorney involved who may not know any more than they do. I have seen attorney closings that were nothing less than nightmares. Realtors provide tremendous assistance with this.

1.2 Usually Sellers expect you to pay top price for a property that they wouldn’t pay half of that for, and they listen to all the wrong people as to what they should get or do.

1.3 Most of the time when a Realtor lists a property, they will give the Seller a market valuation report which will generally be close to the maximum value of the property. This is not an appraisal. An appraisal is a valuation done by a lender who is willing to back their judgment up with money. When a neighbor down the street says the property Is worth $15,000 more than the Realtor or the Bank or the Buyer, you simply need to ask if that neighbor is willing to lend that $15,000 additional on the property for 30 years. If they are willing to put their money where their mouth is, then it is an appraisal and they have the right to their opinion. But only If they will back their opinion with cash does it have any validity.

1.4 Out of any medium-sized community there will be a number of homes for sale at all times. It is likely that less than 10% of these homes will be "by owners". Out of those 10%, finding a motivated Seller that you can make a good offer to and make money on is very slim. On the other hand, the other 90 plus percent that are listed with Realtors, have been brought to the reality of the price structure, cost of sale, and availability of financing to facilitate the sale. In most places, the agent is required by law to submit any offer to the seller that you make. With that big fat multiple listing book, there are a lot more houses to make a lowball bids on than in the Sunday newspaper. There are also far more truly motivated Sellers. Over the years I have come to find that it is indeed generally true that "you make your money in Real Estate when you buy it, you just have to wait until you sell it to collect ". I have also come to find that if I make 10 to 12 ridiculously low offers, one or two will likely be accepted as offered and one or two more will probably counter offer to try to negotiate with me.

 

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