Which do you value more Time or Money?

There is often an interesting paradigm when I ask this question to my friends and family members.  On one hand it may seem more practical to do something yourself as it would save you money but on the other hand, it could end up costing you more time than expected.  Perhaps this would have been time you could have spent at work or vacationing.  If you factor in the amount you are paid per hour, perhaps this is lost income and it would have been more effective to hire someone to do the job.  This can be a common dilemma when it comes to smaller household projects and it may come down to the pleasure factor, if in fact, you enjoy cleaning your home, mowing your lawn or assembling a piece of IKEA furniture.  

When you get to projects on a larger scale usually it is more cost effective to hire a professional to get the job done.  For example,  a tax accountant may be able to put together your return in a few hours and save you money by locating tax deductions you were unaware of.  You could alternatively spend a full weekend doing a return and end up missing some key deductions.

The old saying that "A penny saved is a penny earned" is not relevent when one is making a large monetary or life changing decision.  I have learned the hard way that in the long run it is always best to hire the person who will do the best job to get something I need done.   Even with IKEA furniture,  we have had to deal with the long lines at the store in the midst of putting a dresser together only to realize a critical piece was missing.  For a small amount more we could have paid someone to assemble and deliver a comparable piece of furniture and be done in an hour vs spending a good Sunday afternoon to get to the same point.  

In the real estate business it is always best to work with someone who knows the local area and market conditions.  A realtor will interview the buyer or seller to gain an understanding of their specific needs.  Their sole job is to work for the interest of the client to help them buy or sell a house.  They do not get paid until this job is complete.  It is recommended to do your research upfront but to work with an expert to guide you through the search or sell process.   

Too many times have I seen first time buyers spend months trying to search for a property, only to be unprepared or well positioned when ready to make an offer.  They often lose out to the buyer working with a realtor negotiating on their behalf to seal the deal.  The buyer needs to be in a competitive position with financing and readiness to understand the best terms when making an offer.  A buyers agent works on their behalf to help them be positioned and find the best property.  The cost for this service is most often paid through the sellers commission to the buyer and seller agents.  For the buyer,  there is no real logic for doing this on their own.  

Sellers often think they may save money by going about their property sale by themselves.  How many times do you drive by a house that says  FSBO "For Sale by Owner" one day and then see it hasn't sold a month later.    In the longer run,  the house hasn't had full market exposure, may not be well staged or may be overpriced.  

A seller agent would have guided the seller to best prepare this property for the optimal market exposure.  The commission fee they tried to avoid will be covered if they can sell their home quickly and for a competitive market price vs having the price driven down by keeping it on the market too long.   For the seller side to answer the true question of "Why"  one must also look at sales statistics.  Typically the home sold through a professional sells for 10-15% more therefore offsetting the commission cost.  On the time side, the seller who sells on his own will need to be available whenever a showing is requested.  In addition, once the home is sold often the buyer needs access to the property for inspections and follow up items.  A sellers agent will be there to help with these appointments and follow up on some time consuming things that may need to be handled along the way.

A well trained agent will advocate and help a buyer search for a property.  They will be able to walk a buyer or seller through any issues that may arise and refer the client to appropriate professional services as needed. In addition,  it is a real estate agents job to provide relevant  buyer information to a prospective buyer that may influence the buying decision.  The agent has a wealth of knowledge about the area and can refer the buyer to well known vendors or service professionals already well vetted.  

Beyond mandatory disclosures a seller is not obligated to disclose every issue about a property unless asked.  An experienced agent will lead the buyer to ask the right questions or prompt the buyer to have the appropriate professional inspect the property if he or she senses some concern.    Someone who tries to purchase a property without a professional runs the risk of being mislead.  On the seller side, an agent will advise the seller on which information must be shared with prospective buyers.  Someone who misinforms a buyer may be subject to liability.  Laws are constantly changing and both the buyer and seller have an increased risk of errors and liability if they are not properly guided through the transaction process.  I encourage both buyers and sellers to seek out professional services to help them save money and time in the long run.  This is when the saying "Time is Money" can be true.

Wendy recently joined Coldwell Banker Needham.  She has been a realtor for over 8 years and knowing the area quite well can share a hands on local perspective.  She has also recently earned the SRES  designation and looks forward to helping other baby boomers as they approach their next transitions.  Feel free to contact her directly or click here http://www.wendybcb.com if you would like to learn more.