A large number of Americans will be buying or selling a property as the spring house-hunting season approaches – and many of them will solicit the assistance of a friend or family who happens to work in the real estate industry. Although employing a buddy as your real estate agent may seem like a good idea, experts warn that it might backfire.
Realtors in Beverly Hills are known to be friendly lot. Even while I can’t say that you should never employ a buddy, you shouldn’t hire someone just because you are friends. If you do something for someone because they are excellent at what they do, you shouldn’t consider it a favor.
In some circumstances, consumers find it simpler to employ a buddy rather than spend the time interviewing a number of Beverly Hills real estate brokers. According to a Redfin Research Center study of almost 300 home sellers conducted in 2014, more than a third examined just one agent before deciding on one to market their house for sale. In order to avoid hiring a buddy to act as your agent, here are some possible hazards to be aware of.
A good Beverly Hills Realtor® is akin to your own personal Yoda—someone you can rely on upon with your most urgent inquiries and most important choices, leading you securely toward your destiny (which may be a beautiful new house, of course). But how do you choose the most qualified Realtor when there are literally hundreds of possibilities available in your region to pick from?
Why not go with a tried-and-true product in Beverly Hills when there are so many choices? For instance, a friend or loved one who not only knows you but also has a real estate license and is therefore completely prepared to assist you in purchasing your dream house would be ideal. This seems like something out of a dream, doesn’t it?
For a variety of reasons, the response is almost always “no way” (except in a few rare cases). Moreover, don’t feel bad about not providing them business; instead, refer them to someone else!
Your friend may not be aware of your desired neighborhoods
Whether you’re buying or selling a house, you’ll want to work with an agent who has an extensive understanding of the market in the region in which you’re interested. The same thing happens to me every time a cousin calls and says, “Oh, you live in Beverly Hills, and I’m thinking about purchasing a house there.”
They make the assumption that you are well-versed in all aspects of the subject, and even if you reside in a certain city, there are multiple distinct neighborhoods inside the city. I reside in a certain ZIP code that I can recognize even if I shut my eyes. If you ask me to leave Beverly Hills, I will decline since I am unfamiliar with the region.
Instead, it is critical for buyers and sellers to search for someone who has extensive knowledge of the Beverly Hills market, strong contacts with the major players, and a thorough understanding of the current inventory available.
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Your friend would imagine you in a different area
You may be thinking, what exactly is the issue with a skewed point of view? Isn’t it true that I desire someone who is on my side? Both yes and no. From the beginning to the end, you want a real estate agent who will fight for your best interests, but you also want someone who isn’t afraid to give you the truth, even if it’s difficult to hear.
The contrast between your desire for a city loft and your friend’s vision of you in a bucolic cottage is certain to spark conflict. People believe they know what you are entitled to or what you want. It is difficult for a buddy to maintain the same limits that a client would have.
If you’re purchasing an investment property and your realtor acquaintance does not educate you on the obligations of a landlord because she believes you’ve already done your homework, this might be a major stumbling block.
It’s possible that your buddy will take less time
You may not want your buddy who is assisting you in your home quest to spend every weekend driving you around instead of working with other customers. That would place the burden on you to seek postings and do the necessary research. You’re looking at houses on Zillow and Trulia and doing all of your own research. You’re informing your pal of your requirements. The buddy seems less serious about their hunt, leaving you to do all of the legwork.
That’s when I enter into the picture to help. I am thoroughly aware of the demands of my customers and am eager to devote all of the time necessary to ensure that they are completely satisfied with the services I offer.
It’s possible that your friend is inexperienced.
When buying or selling a house, one of the most crucial choices you will make is which Realtor you will work with. A real estate agent who hasn’t been actively involved in the current market might be a costly error. An inexperienced realtor may advise you to make a higher offer than someone who is familiar with the market.
They may agree if you wish to offer your home at a greater price than anything else that has recently sold in your area. In both circumstances, their lack of expertise will result in a financial loss for you. One of the most proficient strategies to prevent being sued is to hire an experienced real estate agent. Or, even worse, they might cost you the opportunity to purchase your ideal house.
You may be using the services of a buddy since you have a strong connection with him or her, but what’s the purpose if it’s at the expense of the Beverly Hills home acquisition?
Your friend may know things you do not want to talk about
In principle, hiring a cousin or friend seems like a good idea. After all, who is more likely to work harder to safeguard your interests than someone who is familiar with and cares about your situation? It doesn’t always work out like that. Even if your buddy is one of the most successful Beverly Hills realtors in the area, will he listen to your needs or just to what he believes you should need? He continues bringing you houses in gated neighborhoods near her house, and you’re becoming frustrated. It seems like you’re always telling him that you want a loft in the warehouse area, close to the art galleries.
The sale of your house with the assistance of that specific Beverly Hills buddy might be equally perilous. You don’t want her to find out that you took out a second mortgage to help you fund your new company venture. Or, even worse, that your house is completely submerged in water? It may be a big problem for her to keep such information from her parents.
Purchasing and selling a property may be a stressful experience. At times, working with an impartial professional whom you haven’t known your whole life may be more comfortable and productive. Prepare yourself for the possibility of not getting along with a cousin or friend before you employ one to perform the job. Will you hold your buddy responsible? You’re probably wondering how you’ll feel the next time you see them at a family event.
It’s possible that your buddy will not provide you with a reality check.
The fact that your desired list price for your house is too high or that your offer on a property is too low may not sit well with you. But it is your agent’s obligation to tell you the facts and act as an impartial third party. Because of the intense competition in Beverly Hills. You’ll have to forgo all conditions and offer far more than the asking price. Having to counsel a buddy to do something like that might put a relationship in jeopardy.
Discussing your Beverly Hills housing budget or the price you are ready to accept for your property with someone you only know as a professional, rather than your neighbor or yoga buddy, may make you feel more comfortable.
Any dispute might have a negative impact on the friendship
When things go wrong, they go very wrong, which means Thanksgiving dinner may become uncomfortable if you’re in the midst of a particularly difficult transaction with friends or family members, and the borders between your personal and business lives begin to blur. I never want to put my friendships in jeopardy because of a commercial transaction, and this is especially true for me.
Another source of contention for Beverly Hills real estate brokers is when they manage a deal for a friend, and that friend requests a refund of the fee, which may create awkward situations for everyone involved.
Having said that, there may be instances in which a friendship with a real estate agent works out well. If your buddy has previous experience and treats you like a customer, if they take their work seriously and are knowledgeable about the market you’re buying in, then it may be the appropriate match for your situation.
Envy
Even if you have all it takes to be a successful real estate agent, there is one more hazardous emotion that may creep into our brains from time to time: envy. Envy is a feeling that can make us feel inferior to others and make us feel inferior to ourselves. Yes, you are correct! The fact that you have easy work, a social life, belongings, or well-placed investments may cause a buddy to be envious of you.
Resentments act as a barrier between you and your Beverly Hills buddy or acquaintance, and they may come to believe that they cannot trust you or that they cannot be completely honest with you as a result of your feelings. As a result, she likes to collaborate with a stranger. However, don’t take it too seriously. It’s absolutely natural to feel this way.
Conclusion
However, although having a personal connection with your realtor may seem like a crucial prerequisite, if your Realtor lacks the other critical characteristics you want, you aren’t doing yourself any favors. Extremely important are knowledge of and familiarity with the location in which you want to relocate, as well as positive feedback from past customers and the ability to appraise your position with objectivity.
People’s worst characteristics are often shown in the real estate market. It’s an extremely difficult situation. It’s a major and costly life choice to make at this point. There are examples when you just need the support of someone with whom you do not have a personal connection. You also need to be able to terminate that individual if the home-buying process isn’t going as smoothly as you would want. I think it’s better to inform your buddy you can’t employ them right away than risk canning them, which is nearly certain to damage your friendship with them.
Furthermore, if you have difficulty giving control, your relationship will almost certainly be jeopardized. Your agent will almost certainly need to take the reins; after all, they’ll be in a better position to locate you a fantastic place more quickly. There will be difficulties if you have two persons that are very controlling of each other. You must be able to discover someone whose personality will match well with yours in order to succeed.
Therefore, it is vital that you pursue the help of such a professional who can guide you with the best possible deal, whether you are renting, buying, or selling a property in Beverly Hills or Los Angeles.
I welcome you to join with us anytime; as local realtors, we’d love to assist you in all your area questions and goals. If interested in learning more about buying, selling, or investing in a home in Beverly Hills or Los Angeles, we would love to be your one stop shop. From schools to homes, we are here for you.
Connect anytime at:
Email: erik@erikrbrown.com
Instagram, LinkedIn, and Facebook: @theerikbrown
YouTube: @erikbrownhomes
Call: 424-333-6697
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