What Are the Cons of Working with Inexperienced Real Estate Agents?

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San Diego may not be the most affordable housing market in California, but a seasoned real estate agent can help you find reasonably priced listings in the downtown districts. If you’re looking put up a loft or condo for sale in downtown San Diego, an experienced agent will know how to create a bidding war situation whereby the buyer with the deepest pockets wants to get to the closing table as soon as possible. When dealing with inexperienced agents, there’s always a risk of buyers not finding what they want and sellers not getting the most from their properties. Here are four situations that may arise when your agent lacks experience or doesn’t specialize in niche market segments such as condo units.

Missing Details

Going through every purchase contract with a fine-toothed comb is something seasoned real estate agents take pride in doing, even if they have to stay up late at night or spend part of their weekends doing so. A missed provision or even an error can affect the bottom line of a real estate transaction. For example, a buyer may agree to a listed price as long as the seller contributes up to 4 percent of the proceeds toward closing costs. If such a provision is misunderstood and ultimately included in the contract, the seller could end up with thousands less than expected.

Lacking Resources or Connections

Residential real estate transactions can be stopped by any of several roadblocks, which is something seasoned agents not only know but are also prepared to deal with. Let’s say you’re applying for mortgage financing after signing a contract but the bank refuses to continue with the loan process until an old mechanic’s lien is cleared. Experienced agents who have previously dealt with these matters may have contacts in the County Clerk’s Office or know of a law firm that can clear the lien. Other agents may just hope the issue goes away on its own.

Not Being Fully Invested

Agents who are fresh out of real estate school are more likely to play the odds, meaning they’ll take on as many listings as possible because at least one of them is bound to close someday. Experienced agents will only take on listings they believe have a good chance of closing, and they’ll put their own money to work by paying for staging or special marketing.

Misreading the Market

Prospective real estate investors will never work with inexperienced agents because they risk misinterpreting market signals. If you’re buying a condo unit next to an old tower that needs to be renovated, your agent should be able to conduct research and give you a good estimate as to when the project will be completed. Otherwise, you may not be able to make a strategic decision as to when you should acquire and list the property for a flip transaction.

Whether you’re looking to sell or buy a property in one of the downtown districts, you need to work with experts in downtown San Diego real estate. The trusted agents at 92101 Urban Living are here to help. Give us a call today at 619-649-0368 to schedule an appointment.