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I generally try to avoid mixing friendship and business of any kind. I have a friend who has a real estate license and would get insulted if I bought/sold a house without using them. I also know they could use the money, so I feel sort of obligated to use them.
My current house I bought on my own, without a broker, and it was being sold by the owner as well, so I never really did a transaction with a broker. My question is more about what do they actually do for you (other than finding you the house and taking you to see it) when it comes to the transaction itself.
I'm trying to think of what would be the main pitfalls of going with my friend. My main concern isn't even really that he's a friend - it's more about his inexperience in the business. He has his license as a side job, this is not what he does full time.
So what would I be missing out on? Is it different for selling vs buying? It seems that it is more meaningful to have an experienced broker when selling moreso than when buying. Would that be true?
How much of my financials would they need to be exposed to as part of the transaction?
If he's a good agent, should be fine. If he's an incompetent agent it could create issues with the friendship. If you worry he isn't a good/knowledgeable agent, the approach would be to tell him you don't want to risk the friendship with a business transaction and ask him to refer you to an agent in his office. Then he can get a 25% referral fee and you get a good agent. I would hope that would be a happy arrangement.
I tried to use a friend/acquaintance as an agent once. Big mistake because I realized she was inexperienced.
I was going to sell a home and my friend gave me a referral to an agent in the town. Did not end well. Cost me a lot of extra money. Long story. Did not ultimately used that company's agent.
Had a friend who was an agent who got mad at me when I went and looked at a house and didn't use him. He was/is a part time agent. I wasn't serious about purchasing the house at the time.
I know relationships are a big part of a realtor/insurance/etc's business. But I am a little uncomfortable using friends for business. We just hired a financial advisor that lives in our neighborhood. I am not sure how I feel about it.
But I guarantee I would NOT hire anyone who got mad at me that I didn't hire them.
How much of my financials would they need to be exposed to as part of the transaction?
I will answer this because I think it's sometimes important to people's fears. I don't typically share financial info with friends, and I understand the concern.
I have been the broker for several friends, as a buyer's agent.
For those who financed, I never knew how much they made, or even their credit score. Have them get a good lender and I stay out of the financials. I only need to know what their house budget is.
Of those who paid with cash, I was privy to their proof of funds we sent with the offer, but that can take whatever form you want it to take, with only those funds needed for the transaction, not your whole net worth. In most cases, a copy of an account or bank statement with personal info blacked out. Tell me only what you'd want the other party in the transaction to know, that's all I need!
Of those where we represented the seller, we only need to know your mortgage amount if it's more than the net on the house. No other financials.
My main concern isn't even really that he's a friend - it's more about his inexperience in the business. He has his license as a side job, this is not what he does full time.
That's a recipe for disaster.
See the words in bold. If they don't convey sufficient reason not to hire him as your agent then I don't know what will.
I generally try to avoid mixing friendship and business of any kind. I have a friend who has a real estate license and would get insulted if I bought/sold a house without using them. I also know they could use the money, so I feel sort of obligated to use them.
My current house I bought on my own, without a broker, and it was being sold by the owner as well, so I never really did a transaction with a broker. My question is more about what do they actually do for you (other than finding you the house and taking you to see it) when it comes to the transaction itself.
I'm trying to think of what would be the main pitfalls of going with my friend. My main concern isn't even really that he's a friend - it's more about his inexperience in the business. He has his license as a side job, this is not what he does full time.
So what would I be missing out on? Is it different for selling vs buying? It seems that it is more meaningful to have an experienced broker when selling moreso than when buying. Would that be true?
How much of my financials would they need to be exposed to as part of the transaction?
Any advice is much appreciated!
Thanks,
h
Then I hope your friend is giving you a discount as you are giving the friend assured business without the friend having to earn it. Otherwise, I'd tell the friend to go pound sand.
I can't answer any of your actual questions, sadly
"Offended?"
Sounds like he is putting his business ahead of your friendship.
Exactly. Some "friend."
I don't mix business with pleasure (or friendship) either. Anyone who can't get that or insists on being offended (which I realize is all the rage now) can take a hike!
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