So why do I even need a mediator?
Entrepreneur of the Week, Rinat Reuveni-Lerner # Post 5
What to do, we have to admit, in our eyes, the Israelis, a realtor is the one who makes you happy for exclusivity, shows the house, takes a commission and disappears - it may be that many realtors honestly earned the degree, but as in many professions, there are the very good and there are those, " You make a bad name for the profession. ”
Many Israeli customers and investors are shocked when I describe to them the process of buying a property in Texas (I emphasize 'Texas' and not the United States because the US brokerage license is per state), it is so much simpler than in Israel, and also safer and faster - and for the whole business This one here wins… you guessed it… the realtor! (Sound of trumpets).
There is a big difference between the "job definition" of an Israeli and an American broker.
The broker here has a great responsibility towards his client, the accompaniment is throughout the process. He is responsible for locating and finding the property, visiting the property, filming a video or live video, issuing Comps (rental prices and sales in the area), drafting the contract (in Texas you do not need an attorney to buy a real estate property), signing, bidding, Negotiations with the other broker, improving the offer if necessary, coordinating and managing the inspection (home inspection), negotiating with the sellers on the findings, help financing the project with the lenders, types of mortgages, help with the title company… On each of these issues you can write an entire post .
And if all goes well (no onion) - managing the closing where money is transferred and the property is registered in the title in the name of the buyers.
Only (!) At this point the broker actually receives his commission from the seller - that is, the investor (buyer) does not pay his broker anything. Nothing.
There are very rare cases where the seller is not willing to pay a commission to the agent and it will usually be known very early in the transaction stages - then, there will be cases where the broker will ask his commission from the buyer (it has not happened to me, tap, tap ..) but again, all parties knew it In advance and there is full transparency as to who pays to whom and how much.
- All of the above are different in commercial (commercial) transactions - a different type of specialization… for another post…
The role of the realtor is to find you a property that suits you, your needs, your goals, no matter how much effort it will require. A good broker will also tell you what not to buy and what to stay away from - and I have already seen deals that exploded two days before closing because there was no proper disclosure or "new details" were discovered.
Every broker must be connected to a real estate broker, the broker is in fact the body that takes responsibility for the broker's activities, insures him and also shares a commission with him. It is very important to ask the broker who his broker is and whether there is a serious company behind it because when things get complicated (and veteran forum readers know this well) you want a strong body with experience on your side and not someone who will disappear.
It is also important to note that the broker is a buffer between the buyer and the seller. After all, and especially in investments, there is no room for emotions, only the numbers are supposed to speak, it is important to neutralize emotional responses to the other side’s moves. Many times, throughout the negotiations, I see my clients rushing to react, be offended or angry, which can lead to the wrong business move - it is very important to me to be a moderator, one who presents the business image to the client on the one hand and reassures the other. Business is done with people, but in investments it is less relevant.
I will take a look at a story from a few years ago, why it is important to have a broker in the picture and why today most title companies prefer that you sign digitally and the seller will actually never meet the buyer. Disclosure, I was not specifically involved in this story, but my colleague.
This is a residential house, single family יפה beautiful house, 5 bedrooms, about 4,500 sqf, prime location, pool. Inspection goes smoothly, Afrizel goes smooth, the seller and the buyer already know each other, both parties feel they have made the deal of their lives. Arrive on the closing day, the champagne is chilled, everyone is in an uplifted mood, meet in the offices of the title company to sign together, say hello, smiles .. While signing, the landlady says she decided, in an act of generosity, to leave the old and luxurious dining area and more Elegant dresser and some furniture. The buyer, in a minute, turns over, turns red, tells her he does not need her "donations", he has enough money and he is not looking for alms - he goes out in a rage to breathe. The saleswoman is deeply offended that he called the prestigious dining area "garbage", stops signing and goes out too. In the middle, the two realtors stand, looking at each other, and decide to run out, each after his client. After much persuasion, mediation calls and confirmation that these two would never meet, the contract was signed and the closing went successfully. Hello to the two realtors.
Conclusion? Do not leave dining areas where they are not needed! ???? And really, let your broker do the talking and you do not really have to be friends of the sellers…
Tomorrow, last post, where I will reveal the best investment you can make for the future ..
See you on the replay,
Rinat
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