This applies to every aspect. I don’t care if you are a client, Realtor, inspector, or any other aspect. Pay people properly. When you insist on discounts, it pisses the people you are trying to hire off, and then they do a shitty job. I am seeing it over and over again.
There was a Realtor who got talked down from a 5% to a 4% commission. Because it is less, she is offering 2% to the buyer agent, and 2% to herself as the listing agent. To add insult to injury, the seller is also asking $1.1m for the home, which is around $150k over what I think it will sell for. Now the buyer agents don’t want to work for her, and are trying to weasel out of selling clients the property. To compensate she has to now advertise more, but because she is getting paid less, she is cutting corners on her advertisements and open houses. Overall, in attempt to save $11,500, the home will probably get stale, and sell for WAY less than $11,500. Then because the price is high, instead of listing at $1m and getting a bidding war up to $1.1 or so, they will probably sell at somewhere around $950k, if I had to guess. Overall, the strategy is costing everyone a ton of time and money because the Realtor is an idiot, and agreed to take the deal, and the buyer is “smart” and “savvy” and is saving money.
Another example, I have a buyer shooting offers left and right on manufactured homes. I keep recommending that we offer high because of the market. On this last deal I recommended we offer $280k. The buyer said that is absurd, and offered $260k. We were beaten by someone who offered $275k. We have been looking for 3 months, and now they will not close before they need a home, and are panicking. But at least they didn’t overpay!
Last one, but my client insisted we don’t need an inspection because it’s like $400, and the previous buyer had an inspection done that found minimal issues. Now their roof is leaking. Good thing they saved $400 though!
Cheap folks everywhere. I wish they would listen to me. Instead they just keep ignoring me because I am a slimy salesman. Then they turn around to sue me when thing I warn them about comes true…and then they are SHOCKED when they remember they signed a disclosure stating my advice…ugh…this market.
TL;DR: Listen to the professionals you pay, and pay people properly, for goodness sake.