The Value of Professional Guidance: A Tale of Misguided Assumptions

It was a sunny Thursday afternoon when Nikki received an unexpected phone call from one of her repeat referral clients, Lisa. Over the years, Nikki had guided Lisa through the purchase and sale of multiple properties, each transaction smooth and successful thanks to Nikki’s expertise and Lisa’s trust in her agent’s abilities. But this time, the call had a very different tone.

“Hey, Nikki! I’ve got some exciting news,” Lisa began, her voice brimming with confidence. “I’ve found a property I absolutely love, and I’ve decided to make an offer.”

“That’s wonderful, Lisa! I’m glad you’ve found something that fits what you’re looking for,” Nikki replied, her professional instincts tingling as she anticipated what was coming next.

“Yeah, well, I’ve been following the news about the settlement, and I’ve realized something. I don’t actually need an agent for this one. I’m going to handle it myself, save a little money, you know?”

Nikki’s smile faltered slightly. She knew where this was headed but remained calm, allowing Lisa to continue.

“Here’s my plan,” Lisa said, her excitement growing. “I’m going to make an offer via email directly to the listing agent. I’ll go in at 3% below the list price to save some money. I’ll also make it contingent on the sale of my current home—though, it’s not on the market yet—and I’ll get my mortgage approval letter on Monday. Oh, and I’ll be out of the country for two weeks starting next week, so I don’t really need an agent, just my attorney to look things over.”

Nikki took a deep breath, considering her next words carefully. She had worked with Lisa long enough to know that she needed to address these issues delicately but firmly.

“Lisa, I understand wanting to save money, especially in light of recent changes in the industry,” Nikki began. “But I’m concerned that the approach you’re planning might put you at a significant disadvantage.”

Lisa paused, taken aback. “What do you mean, Nikki? I thought I was being smart about this.”

Nikki smiled warmly, appreciating Lisa’s initiative but recognizing the need to guide her back on track. “Let’s break this down together. First, making an offer 3% below the list price might seem like a way to save money, but without an agent advocating for you, the listing agent—who represents the seller—might not give your offer the same consideration. They’re obligated to get the best deal for the seller, not you.”

Lisa was silent, absorbing Nikki’s words.

“Secondly,” Nikki continued, “making the offer contingent on the sale of your current home, which isn’t even on the market yet, adds another layer of complexity. In a competitive market, sellers prefer buyers with as few contingencies as possible. This could make your offer less attractive, even with a lower price.”

Nikki could hear Lisa’s breathing quicken on the other end of the line, a sign that her earlier confidence was starting to waver.

“And about the mortgage approval letter,” Nikki added, “waiting until Monday to provide that could make your offer appear less serious. Sellers typically prefer pre-approved buyers who are ready to move quickly. If you don’t have your approval letter by the time you make the offer, you might lose out to another buyer who’s fully prepared.”

Nikki heard Lisa sigh. “I hadn’t thought about that.”

“And finally, going out of town for two weeks right after making an offer could complicate things even more. Real estate transactions can move quickly, especially in the first few days. You need to be available to respond to counteroffers, handle inspections, and address any other issues that might come up. An attorney is important, but they don’t provide the same level of day-to-day support and guidance that a real estate agent does.”

Lisa’s voice was softer now, her earlier bravado replaced with a tone of uncertainty. “I just thought I could handle it on my own and save some money.”

“I understand, Lisa,” Nikki replied gently. “But the truth is, having an experienced agent on your side can save you time, stress, and possibly even more money in the long run. My job is to protect your interests, negotiate on your behalf, and ensure that every aspect of your transaction is handled smoothly. The settlement may have changed some things in our industry, but it doesn’t change the value of having someone who knows the market, the process, and your needs inside and out.”

There was a pause on the other end of the line before Lisa finally spoke again. “You’re right, Nikki. I think I got a little ahead of myself. I trust you, and I’d feel better having you help me with this. Can we work together on this offer?”

Nikki smiled, feeling a sense of relief. “Of course, Lisa. We can set up a time to talk about representation and compensation, just like we’ve done on the past few transactions. After that, we’ll move into discussing your options and making a plan for the next steps in this transaction to ensure you’re in the best possible position to get the home you love before you head out of town.”

As Nikki hung up the phone, she felt a renewed sense of purpose. The settlement might have changed the landscape of real estate, but it hadn’t changed the importance of professional guidance, trust, and expertise in navigating the complexities of buying a home. Nikki knew that with her help, Lisa would have the best chance of success—and that was worth more than any commission could ever be.