Is the Real Estate Market Efficient

Talking about efficiency, I’d like to highlight two points.

• Time

• Money

A realtor definitely knows the process of buying a home. They are specialists in the buying process. The realtor has information that will help you be more efficient in the buying process. Specifically, they can sift through properties quickly and show you the properties within your budget and which you can likely buy.

There are positives and negatives to this process. On the one hand, the realtor can quickly understand the features that you would like and they can also make a list of properties that you can afford. On the other hand, some realtors love to show buyers around so that the buyer starts to feel more thankful for the help and indebted to them. The key is that the realtor is trying to figure out how much they need to do so that you feel that the service is worth it.

Efficiency means paying for the services you need and saving time and money in the process. Are we paying for services that we really don’t need? The more you require the realtor to work on unnecessary efforts and put in the legwork, the more you’ll feel indebted and lose your bargaining power regarding the commission rebate. 

Let me give you an example, once the seller has accepted your offer, and you need to make the initial deposit at the listing agent’s brokerage, the normal practice is for the realtor to pick up the check from you and then deliver the check to the listing brokerage. Is that what you’re paying for?

Consider another model where you deliver the check yourself and at the same time save both money and time. Image the amount of money you can save by doing this simple task. And that’s not the only place where you can save huge amounts of money. 

Besides saving money by delivering the check to the brokerage. Realtors also facilitate fixing and cleaning properties. Obviously, you can find a professional to do these things and end up with the same or even better service. The money that you will receive from the commission rebate will far exceed the cost to handle these issues by yourself and in many cases, people already have the experience they need to do things on their own. So why pay more? 

Let’s keep going. Think about showing the properties. Is it necessary to see a long list of properties that you’re not interested in because the price is so far above your budget, does not have all the features you need, or is not in the right area? Realtors like to add a few more properties from the same neighborhood to perhaps pique your interest or perhaps to show their willingness to help you. In reality, it’s just a waste of time.