Great post, but it's difficult to trust anybody nowadays. However, real estate agents studied and worked hard to be able to give competent advice to real estate buyers and sellers so I think it's unfair to just get the agents' advices for free.

Very interesting I must say. I think that in the end there are so many issues to look into and that makes my head spin.

I think having an agent does save a lot of problems and also we always have someone to blame if things go wrong.

You cant trust anyone nowadays and this post comes in a good time.

Some blogs can be trusted and there are good blogs too but then there is the risk of wrong information, I would like to indulge in buying something like with professional but reliable help.

I would use a referral for that.

Interesting.

I'd like to see where a dermatologist offers free advice regarding a specific medical problem that the doctor has not seen over the internet. However, Mr ForSalebyOwner believes this happens all the time. Poor analogy.

Great Blog! I have been selling real estate in Bend Oregon since 1981 and find it refreshing to find a helpful blog like yours! Keep up the good work!

That was something that always killed me too - they don't want a real estate agent, and yet - they do. But for free and without any kind of loyalty.

It's one thing to do FSBO if you know what the heck you're doing and have experience in negotiating and understand real estate law...but if you're clueless, it's a very foolish mistake.

Jay, Not sure what keyword they are using to find my site, but I get calls from FSBO's asking similar questions from time to time. When I was new to the business I found them amusing, now I ust find it sad.

Surprised to see you are on Trulia.

Gee, for a buyer to deal directly with a fsbo, they have to both be of the same "stock"..

A good amount of FSBO's have the potential to "eat their young".. LOL.. (Just Kidding)....

I wouldn't even answer a question like that. If you went without a real estate agent, use a lawyer.

“On a last note, it’s amazing that so many agents on this blog are against sharing information/advice on the Internet with the general public. This anti-consumer behavior only serves to confuse the public in an attempt to protect commissions…”

This just cracks me up. Does the writer at all realize he is on one of the most imformative blogs out there.

"Imagine nutritionists not sharing info on the web about the latest health news"

There are so many realtors out there sharing information on their blogs its incredibly.

But if you wrote a nutritionist something along the lines of

"I think all you nutritionists are a bunch of blood thirsty scumbags that are unneeded. Buuutttt I have this health question and I want you to spend all your time helping me figure out whats wrong. But just remember I would never pay you because you are worthless".

I got an email from someone asking me a ton of questions with the bottom saying "Dont call me I dont want to use a realtor". I don't know what these people are thinking.

Jay, you real do have a gentleman's touch with words. I get so angry with these agents stepping all over each other trying to get a buyer or seller on Zillow and Trulia. I must confess I sometimes go on a leave a quick one liner or stir it up with a what if question back to the person seeking free advise just for kicks. I am hoping the free loader takes the advice given by those agents and then he sues them for giving him bad advise.

You seem to be able to take every situation and turn it into a plesant learning experience where my blood pressure just goes up to the point my brain is about to explode. I noticed your nice post on Inman about the NJAR, too. Man - I swear I don't know how these people got to be in charge. You would think they would have a GROUP on linkedin under the association and that the FaceBook would be a group membership - at least that how I think.

Well, maybe I think too much? NIce post.

Funny how the buyer doesn't want to pay for advice but he wants you to give it to him for free. Yet buyers don't typically pay for real estate agent advice since the seller pays the commision. (most the time)

I hate to say this but im glad to see I am not the only one that has to deal with these types of issues from buyers.

Jay - well pointed out reasons of why to have an agent/broker on your side. As well, if anyone were to find your blog they would know you're just that kind of guy to offer help for the consumer, buyer/seller alike. I agree with you whole heartly about not advising on a contract if you have not reviewed it personally. Great answer and one that all agents should think twice about.

FSBO's are selling at an all time low these days, meaning that the services of a professional are more important than ever. If time is on your side try to FSBO, but if you are in a hurry let the experts deal with it. They will get you more money any way in most cases.

I see Jay already took care of the 'light work' in response to FSBO.

I see comments thrown around quite a bit about attorney's only charging a couple of hundred bucks to look over real estate related contracts. The attorney's I talk to laugh at those comments.

The other thing I'd like to respond to is there is NO protecting commission, this is just another anti-realtor rant that can be found on any anti real estate blog.

Yes... I do believe that anyone can negotiate the transfer of property on their own. I've helped a few folks do just that... for zero commission dollars (typically on land deals that are normally fairly simple in the first place). I have no problem with folks going the FSBO route... I recently bought a home in another state and there were no realtors involved on a commission basis (bought a home from a FSBO and on the offer I simply noted that I was a licensed realtor in the state of Arizona).

This blogs host and many, many others offer FREE insight and other useful information to anyone who may come across the blogs and other web-sites.

"ForSaleByOwner" -

I removed all the links to your site, as our comment policy clearly states no advertising.

I'm a real estate agent/broker. I don't come on to your site and advertise my services.

That being said, I'm leaving the rest of your comment as is, because you make some interesting points...

"Consumers need to know that real estate agents are not licensed to give legal advice on how to proceed with contracts… hence that’s why there’s a thing called “Attorney Review Process.” "

And that's been made clear here countless times. However, the Arizona State Constitution does have provisions that allow licensed agents/brokers to work with real estate contracts. No, we can't give legal advice, but we do know a little bit about real estate contracts.

There typically is not a legal review process in Arizona. It is very rare here to have attorneys involved (I realize that is not the case in all states).

"On a last note, it’s amazing that so many agents on this blog are against sharing information/advice on the Internet with the general public. This anti-consumer behavior only serves to confuse the public in an attempt to protect commissions..."

Please. There is untold information sharing/advice provided on this blog and across the internet by myself and many other real estate agents.

I don't want, nor need to "protect my commission". My clients know exactly what they pay, and what they get for that.

There are over 1,000 posts here on this blog. Yes, some have nothing to do with real estate. But the bulk are provided free of charge, with no solicitation for business.

I'm not saying every real estate agent is perfect (in fact, I've been quite blunt about quite the opposite) nor am I saying there is no place for FSBOs (and I've said that here as well.) If someone wants to sell their home themselves and/or buy a home without representation, that is clearly their choice, and I wish them success.

But if someone asks me specific questions about a real estate contract I've never seen, providing free advice on said contract would not only be stupid of me, it would be stupid of the person to accept if it were offered.

Would you please send this article to the AZ Republic so the public can read it? Most "lay people" just are ignorant (not knowing). They need to be educated "en masse"! And yes, they DO go to the Office store for the contracts. A man in Sun City showed me his one page contract..."Now that is all you need" he said! I quickly educated him on the litigiousness of our world. He agreed. :)

FSBOs websites, like (link redacted), provide alternatives to paying commission and FSBO listings are about 20-23% of listings.

Todd, the referenced FSBO buyer, would do very well if he consulted with a real estate attorney to review any and all sales contracts, as well as provide advice on how to proceed with altering the offer price, etc. And, oh, a real estate attorney would cost just a couple hundred dollars... extremely less than what a real estate agent/broker would charge in commission (i..e. thousands or tens of thousands of dollars).

Consumers need to know that real estate agents are not licensed to give legal advice on how to proceed with contracts... hence that's why there's a thing called "Attorney Review Process."

On a last note, it's amazing that so many agents on this blog are against sharing information/advice on the Internet with the general public. This anti-consumer behavior only serves to confuse the public in an attempt to protect commissions, and is very unlike how other professions use the Internet to share information. Imagine nutritionists not sharing info on the web about the latest health news, or the dermatologist industry being against providing free advice on how to avoid getting skin cancer.

(link redacted)

I've answered many a "Trulia" question... but, I always stay away from ones like that.

"Should I cancel the contract..." ya, right, like I'm going to advise someone to cancel a contract. I think not, especially since I am not familiar with the deal nor have I seen the contract (as you pointed out Jay).

I am always amazed at the things I hear about FSBO deals, and I'v eonly been doing this since 1994. I imagine there are a lot more horror stories out there than I'd ever care to hear.

Matt Pellerin - Realtor

Nice post Jay - I agree 100%. Unless you're a real estate professional, buying a home without a real estate agent is equivalent to taking it upon yourself to decide what to do with your retirement, where it should come from, how much monthly should be dedicated to it etc.. - would you really make a decision like that w/o professional advice? I doubt it -

Yes everyone wants that "free" advice and there is a amazing amount of that online, however most people will never accept this but free advice does not = good advice and certainly not advice you should be risking 100's of thousands of dollars on....... Yet people do it every day and then blame others when it doesnt work out so well, real estate agents also seems to be the ones most receptive to just giving out free info even when they could not possibly truly know the situations because many are just dead pressed to try to latch onto a commission check, its a vicious cycle that only once you have hurt yourself do you realize a need for that service.

But Jay, he saved money on the commission didn't he? LOL.

It was a FSBO, so he probably agreed to pay more than it was worth.

Before my clients are locked into a contract, I've had not only an inspector look at the house, but several building contractors to give firm quotes on what any repair costs are going to be. I've started doing this as a service to my clients as a result of the foreclosure properties that are in need of some serious TLC.

But hey, if you want to save on a real estate agents commission - go right ahead. Let the buyer beware.

I saw this question myself yesterday, Jay, and almost replied simply: "Let me know what you figure out" or some other wise-cracking type response. Today I decided to go ahead and post it.

Not to be a jerk (which is a word that Trulia Voices thinks is taboo, btw), but really it makes no sense to offer free advice in this situation, just like you point out. When a buyer and seller enter into uncharted territory, and then the (un)expected comes up, professionals shouldn't jump in to save the day for free...that simply undermines our worth.

Great post Jay - it's amazing to me how many buyers out there really feel like they don't need an agent, feel like they can properly navigate the negotiation and escrow process basically without help, all that when having an agent is completely free to them as the buyer. There's a notion that they'll get a cheaper deal when the seller isn't paying as many commissions, or higher commissions, and I'd have to say that's bull. I've never seen or heard of a seller selling for 3-7% less than his/her home is worth, because they're saving money on real estate commissions. When the seller cuts his price, due to the savings on commissions, the gain he has is ZERO. And since when do sellers elect to go a route where there is no benefit (no agents to help protect deal, pick up slack, and guide it all), when the benefit is ZERO? I don't think so.

I read the anti-realtor blogs and one thing from the comments often found there is that negotiating a real estate deal is easy and only 'morons' would hire a pro.

Heh.

In a market where buyers are getting bombarded with so much negative information, I've seen them trying to go it alone more and more frequently...and ending up in a big mess. It's unfortunate that they are turning away from the very people that can actually HELP them muddle through all of the info to determine what's valid and what's not. Thanks for sharing this insight with buyers.

Great post, but it's difficult to trust anybody nowadays. However, real estate agents studied and worked hard to be able to give competent advice to real estate buyers and sellers so I think it's unfair to just get the agents' advices for free.

Very interesting I must say. I think that in the end there are so many issues to look into and that makes my head spin.

I think having an agent does save a lot of problems and also we always have someone to blame if things go wrong.

You cant trust anyone nowadays and this post comes in a good time.

Some blogs can be trusted and there are good blogs too but then there is the risk of wrong information, I would like to indulge in buying something like with professional but reliable help.

I would use a referral for that.

Interesting.

I'd like to see where a dermatologist offers free advice regarding a specific medical problem that the doctor has not seen over the internet. However, Mr ForSalebyOwner believes this happens all the time. Poor analogy.

Great Blog! I have been selling real estate in Bend Oregon since 1981 and find it refreshing to find a helpful blog like yours! Keep up the good work!

That was something that always killed me too - they don't want a real estate agent, and yet - they do. But for free and without any kind of loyalty.

It's one thing to do FSBO if you know what the heck you're doing and have experience in negotiating and understand real estate law...but if you're clueless, it's a very foolish mistake.

Jay, Not sure what keyword they are using to find my site, but I get calls from FSBO's asking similar questions from time to time. When I was new to the business I found them amusing, now I ust find it sad.

Surprised to see you are on Trulia.

Gee, for a buyer to deal directly with a fsbo, they have to both be of the same "stock"..

A good amount of FSBO's have the potential to "eat their young".. LOL.. (Just Kidding)....

I wouldn't even answer a question like that. If you went without a real estate agent, use a lawyer.

u00e2u0080u009cOn a last note, itu00e2u0080u0099s amazing that so many agents on this blog are against sharing information/advice on the Internet with the general public. This anti-consumer behavior only serves to confuse the public in an attempt to protect commissionsu00e2u0080u00a6u00e2u0080u009d

This just cracks me up. Does the writer at all realize he is on one of the most imformative blogs out there.

"Imagine nutritionists not sharing info on the web about the latest health news"

There are so many realtors out there sharing information on their blogs its incredibly.

But if you wrote a nutritionist something along the lines of

"I think all you nutritionists are a bunch of blood thirsty scumbags that are unneeded. Buuutttt I have this health question and I want you to spend all your time helping me figure out whats wrong. But just remember I would never pay you because you are worthless".

I got an email from someone asking me a ton of questions with the bottom saying "Dont call me I dont want to use a realtor". I don't know what these people are thinking.

Jay, you real do have a gentleman's touch with words. I get so angry with these agents stepping all over each other trying to get a buyer or seller on Zillow and Trulia. I must confess I sometimes go on a leave a quick one liner or stir it up with a what if question back to the person seeking free advise just for kicks. I am hoping the free loader takes the advice given by those agents and then he sues them for giving him bad advise.

You seem to be able to take every situation and turn it into a plesant learning experience where my blood pressure just goes up to the point my brain is about to explode. I noticed your nice post on Inman about the NJAR, too. Man - I swear I don't know how these people got to be in charge. You would think they would have a GROUP on linkedin under the association and that the FaceBook would be a group membership - at least that how I think.

Well, maybe I think too much? NIce post.

Funny how the buyer doesn't want to pay for advice but he wants you to give it to him for free. Yet buyers don't typically pay for real estate agent advice since the seller pays the commision. (most the time)

I hate to say this but im glad to see I am not the only one that has to deal with these types of issues from buyers.

Jay - well pointed out reasons of why to have an agent/broker on your side. As well, if anyone were to find your blog they would know you're just that kind of guy to offer help for the consumer, buyer/seller alike. I agree with you whole heartly about not advising on a contract if you have not reviewed it personally. Great answer and one that all agents should think twice about.

FSBO's are selling at an all time low these days, meaning that the services of a professional are more important than ever. If time is on your side try to FSBO, but if you are in a hurry let the experts deal with it. They will get you more money any way in most cases.

I see Jay already took care of the 'light work' in response to FSBO.

I see comments thrown around quite a bit about attorney's only charging a couple of hundred bucks to look over real estate related contracts. The attorney's I talk to laugh at those comments.

The other thing I'd like to respond to is there is NO protecting commission, this is just another anti-realtor rant that can be found on any anti real estate blog.

Yes... I do believe that anyone can negotiate the transfer of property on their own. I've helped a few folks do just that... for zero commission dollars (typically on land deals that are normally fairly simple in the first place). I have no problem with folks going the FSBO route... I recently bought a home in another state and there were no realtors involved on a commission basis (bought a home from a FSBO and on the offer I simply noted that I was a licensed realtor in the state of Arizona).

This blogs host and many, many others offer FREE insight and other useful information to anyone who may come across the blogs and other web-sites.

"ForSaleByOwner" -

I removed all the links to your site, as our comment policy clearly states no advertising.

I'm a real estate agent/broker. I don't come on to your site and advertise my services.

That being said, I'm leaving the rest of your comment as is, because you make some interesting points...

"Consumers need to know that real estate agents are not licensed to give legal advice on how to proceed with contractsu00e2u0080u00a6 hence thatu00e2u0080u0099s why thereu00e2u0080u0099s a thing called u00e2u0080u009cAttorney Review Process.u00e2u0080u009d "

And that's been made clear here countless times. However, the Arizona State Constitution does have provisions that allow licensed agents/brokers to work with real estate contracts. No, we can't give legal advice, but we do know a little bit about real estate contracts.

There typically is not a legal review process in Arizona. It is very rare here to have attorneys involved (I realize that is not the case in all states).

"On a last note, itu00e2u0080u0099s amazing that so many agents on this blog are against sharing information/advice on the Internet with the general public. This anti-consumer behavior only serves to confuse the public in an attempt to protect commissions..."

Please. There is untold information sharing/advice provided on this blog and across the internet by myself and many other real estate agents.

I don't want, nor need to "protect my commission". My clients know exactly what they pay, and what they get for that.

There are over 1,000 posts here on this blog. Yes, some have nothing to do with real estate. But the bulk are provided free of charge, with no solicitation for business.

I'm not saying every real estate agent is perfect (in fact, I've been quite blunt about quite the opposite) nor am I saying there is no place for FSBOs (and I've said that here as well.) If someone wants to sell their home themselves and/or buy a home without representation, that is clearly their choice, and I wish them success.

But if someone asks me specific questions about a real estate contract I've never seen, providing free advice on said contract would not only be stupid of me, it would be stupid of the person to accept if it were offered.

Would you please send this article to the AZ Republic so the public can read it? Most "lay people" just are ignorant (not knowing). They need to be educated "en masse"! And yes, they DO go to the Office store for the contracts. A man in Sun City showed me his one page contract..."Now that is all you need" he said! I quickly educated him on the litigiousness of our world. He agreed. :)

FSBOs websites, like (link redacted), provide alternatives to paying commission and FSBO listings are about 20-23% of listings.

Todd, the referenced FSBO buyer, would do very well if he consulted with a real estate attorney to review any and all sales contracts, as well as provide advice on how to proceed with altering the offer price, etc. And, oh, a real estate attorney would cost just a couple hundred dollars... extremely less than what a real estate agent/broker would charge in commission (i..e. thousands or tens of thousands of dollars).

Consumers need to know that real estate agents are not licensed to give legal advice on how to proceed with contracts... hence that's why there's a thing called "Attorney Review Process."

On a last note, it's amazing that so many agents on this blog are against sharing information/advice on the Internet with the general public. This anti-consumer behavior only serves to confuse the public in an attempt to protect commissions, and is very unlike how other professions use the Internet to share information. Imagine nutritionists not sharing info on the web about the latest health news, or the dermatologist industry being against providing free advice on how to avoid getting skin cancer.

(link redacted)

I've answered many a "Trulia" question... but, I always stay away from ones like that.

"Should I cancel the contract..." ya, right, like I'm going to advise someone to cancel a contract. I think not, especially since I am not familiar with the deal nor have I seen the contract (as you pointed out Jay).

I am always amazed at the things I hear about FSBO deals, and I'v eonly been doing this since 1994. I imagine there are a lot more horror stories out there than I'd ever care to hear.

Matt Pellerin - Realtor

Nice post Jay - I agree 100%. Unless you're a real estate professional, buying a home without a real estate agent is equivalent to taking it upon yourself to decide what to do with your retirement, where it should come from, how much monthly should be dedicated to it etc.. - would you really make a decision like that w/o professional advice? I doubt it -

Yes everyone wants that "free" advice and there is a amazing amount of that online, however most people will never accept this but free advice does not = good advice and certainly not advice you should be risking 100's of thousands of dollars on....... Yet people do it every day and then blame others when it doesnt work out so well, real estate agents also seems to be the ones most receptive to just giving out free info even when they could not possibly truly know the situations because many are just dead pressed to try to latch onto a commission check, its a vicious cycle that only once you have hurt yourself do you realize a need for that service.

But Jay, he saved money on the commission didn't he? LOL.

It was a FSBO, so he probably agreed to pay more than it was worth.

Before my clients are locked into a contract, I've had not only an inspector look at the house, but several building contractors to give firm quotes on what any repair costs are going to be. I've started doing this as a service to my clients as a result of the foreclosure properties that are in need of some serious TLC.

But hey, if you want to save on a real estate agents commission - go right ahead. Let the buyer beware.

I saw this question myself yesterday, Jay, and almost replied simply: "Let me know what you figure out" or some other wise-cracking type response. Today I decided to go ahead and post it.

Not to be a jerk (which is a word that Trulia Voices thinks is taboo, btw), but really it makes no sense to offer free advice in this situation, just like you point out. When a buyer and seller enter into uncharted territory, and then the (un)expected comes up, professionals shouldn't jump in to save the day for free...that simply undermines our worth.

Great post Jay - it's amazing to me how many buyers out there really feel like they don't need an agent, feel like they can properly navigate the negotiation and escrow process basically without help, all that when having an agent is completely free to them as the buyer. There's a notion that they'll get a cheaper deal when the seller isn't paying as many commissions, or higher commissions, and I'd have to say that's bull. I've never seen or heard of a seller selling for 3-7% less than his/her home is worth, because they're saving money on real estate commissions. When the seller cuts his price, due to the savings on commissions, the gain he has is ZERO. And since when do sellers elect to go a route where there is no benefit (no agents to help protect deal, pick up slack, and guide it all), when the benefit is ZERO? I don't think so.

Great post, I really enjoyed it. I will have to bookmark this site for later.

Ironic - a buyer goes to a FSBO, neither wanting a Realtor, then, when it gets, sticky, they want help. Great advice for both the buyer and the agents who are trying to answer this question without knowledge of the contract.