Real Estate Transactions Without a Broker Are Time-Consuming and Risky
Real estate transactions carried out without a broker's assistance typically take much longer, and often never come to completion at all. Additionally, one cannot foresee or even imagine all the risks involved, which is also completely natural. One of the major stumbling blocks is usually a lack of knowledge about real estate transactions, the market, and legislation, which in the worst case ends in years of court proceedings or even losing your property altogether. Whether this happens as a result of accidental human error or someone's intentional deception is of no importance from the victim's perspective. As a rule, being your own "broker" usually costs much more than the brokerage fee to a real estate office, which is typically only around 4%.
Unfortunately, these are by no means isolated cases. All kinds of people operate in the real estate market and unfortunately, throughout history, it has attracted all sorts of scammers, whose victims are primarily "enthusiasts" who cannot and do not know how to anticipate dangers.
To avoid such situations, it's worth remembering a few tips:
1. Do not attempt to conduct real estate transactions yourself if you are not an expert in this field. Without knowing the real estate market, it is very difficult to correctly assess the value of your property. If you set the price too high, the property may not sell or rent out, but if you ask too little, you have "shot yourself in the foot" financially. Additionally, the transaction can drag on indefinitely because the buyer or seller has multiple irons in the fire or simply runs out of money. If you lack the relevant experience, you may not realize any of this until the transaction falls through. In that case, you can only blame yourself and there is no one to hold responsible.
2. Never sign any contracts if you do not know all the regulations and legislation precisely. Real estate purchase, sale, and rental agreements are full of nuances that those who do not deal with them on a daily basis cannot account for. You can easily place yourself in very complicated situations or even become a victim of intentional fraud. An ordinary citizen may not realize what dangers can lurk in carrying out a real estate transaction or where and how to check everything, because the property may be mortgaged, burdened with a mortgage or other debt obligations, without a building permit, or even not registered in the real estate register. Such cases abound in the judge's criminal practice. The final notarial formalization of the transaction also requires legal literacy.
3. If you do not know the subject, use the help of professionals. This truth applies to all areas of life and following it saves both time, money, and health by preventing many unpleasantries. For example, we never repair our teeth or electronic devices ourselves because we know we cannot handle it. For some reason, this truth does not apply to real estate transactions. Many still believe they are great experts on real estate and can handle everything. As in other developed parts of the world, an understanding is increasingly developing in Estonia that to achieve the best result, you must always turn to professionals and not try to improvise something on your own. The result is usually unsatisfactory. Unfortunately, such cases still happen far too often and as a rule, one turns to a real estate office for help only after something has been fundamentally messed up due to "amateur effort". Usually, correcting errors is much more complicated and ultimately also more expensive.
4. The safest thing is to conduct your transactions through a real estate office. As a rule, real estate consultation is free, as is the conclusion of a broker agreement and its termination by mutual agreement if the transaction does not take place. Generally, brokerage fees are paid only for completed transactions and this outweighs all the risks and troubles along with the time and nerves spent on inefficient handling. A broker agreement ensures, in addition to professional service, also guarantees and mitigates the transaction security risks. Standing up for the client's interests is extremely important for the broker because it significantly depends on both reputation and income.
5. Find a suitable broker only through a professional real estate office. This eliminates both incompetence and stumbling upon self-appointed fake brokers. As a rule, the vast majority of Estonian real estate firms are entirely trustworthy and fairly similar in price levels. Larger offices may have a slightly broader service portfolio, while smaller ones offer a more personal approach. At the same time, experienced brokers work in both who know the real estate market very well and are able to provide the highest level of service.
Of course, everyone decides for themselves how to handle their real estate, but when assessing the situation, one should be realistic. Today's Estonian real estate market is full of properties, transactions occur intensively, and price ranges span the entire spectrum. Some properties sell quickly, others not at all. The most common reason for a transaction to drag on or stall is an incorrectly set price.
Therefore, you should not draw any far-reaching conclusions based on the price numbers found in real estate portals. Many transactions do not take place at such prices, but are based on the ratio of supply and demand in the market.
As the well-known Estonian proverb says – "let every cobbler stick to their lasts!" The best result is achieved when acting in a field that each of us knows and understands best: doctors treat patients, teachers teach students, bus drivers transport passengers, builders build houses, and brokers deal with real estate.
