Singing Your Tune?
Money is at risk when you purchase a home and anytime money is at risk I’m on the lookout – for distinctive competence (DC). A distinctive competency is unique to a business and superior in some aspect to the competencies of other organizations.
While this is a real estate newsletter, the concept holds true for the many financial decisions you make annually from taxes, to home buying to investing. Locating a home is now readily available to the public by searching Realtor.com, Zillow, Trulia and the like.
Finding the home carries the least amount of risk in the purchase process. Your money is at risk in numbers 2-6 below.
1. Finding the home
2. Determining value
3. The Inspection and post-inspection negotiation
4. The mortgage process
5. The title policy
6. Closing the home purchase.
A real estate license is easy to get. It takes some studying and memorization. The license allows an agent to fill out forms, which is probably why you know a real estate agent or you know someone who knows an agent. But what is the distinctive competence of the person advising you?
Let me sing the praises of the distinctive competence Seamus P. Holloway brings to Homebuyer Associates:
(Seamus singing a Neil Young tune for his uncle – as he takes a break from remodeling his homestead)
1. 4 years experience working at a housing and commercial building rehab company.
2. 3 years experience at a Title Company working with residential Title policies.
3. 3 years working at a large national bank in the mortgage department.
4. He owns and has rehabbed 3 duplexes.
5. 10 years of experience working for the most experienced Buyer Broker firm in Wisconsin – Homebuyer Associates.
A recent Inman News survey of real estate agents noted, 78% of respondents said new agents fail because they are unprepared for the realities of working as in independent contractor. That “failing” involves areas of work outside completing forms.
Part of any real estate distinctive competencyshould be a strong working knowledge of
1. How buildings are put together:
2. How to solve and negotiate inspection issues on your behalf;
3. The mortgage process;
4. Obvious Title issues;
5. How to negotiate and solve issues leading to closing.
I used to sit on the State of Wisconsin Real Estate forms committee. The forms committee was charged with keeping real estate forms up to date. My job was to represent the interests of homebuyers as forms were amended or created.
Often, when the forms committee reviewed forms it would be recommended that the forms be “dumbed down” at which point I’d raise my hand and ask, “Can’t we just demand agents become smarter and better?”
So the DC of the agent involved determines whether your interests are protected. Like basketball players or guitarists – not all agents are created equal. Find one that sings your tune and in tune.
Thanks for reading,
Michael D. Holloway