Information and knowledge are very different things, but even smart people can have a lot of trouble understanding the difference between the two. With so much information available from so many sources on line, just telling the difference between good information and bad information can be quite a challenge, not to mention figuring out how to use all that information wisely. Many professions that once thrived upon being the source of information have been transformed and even disappeared as the information age has progressed over the last 20 years or so and everything you might ever need to know seems to be available on line.
Knowing what you don’t know is easier in some fields than others. You can go on line and search on any set of medical symptoms you might have – fever, pain of a particular kind, swelling, nausea, etc. and probably come up with a decent idea of what ails you, but most people still have enough sense to go see a doctor if are sick enough to need care. It is likewise easy to find a lot of free information regarding the law and legal forms for just about any occasion can be had for free or for a small fee. Most people charged with a crime still want to have a lawyer represent them, but probably too many people needing a legal form take a chance on downloading one on line. While using a legal form you found on a web site may save time and money in the short run, the consequences of a poorly drafted contract, will, power of attorney, etc., may not become apparent until much later when that document is challenged and it may be too late to correct any problems it has caused.
Real estate is perhaps the field where the most people have a hard time knowing what they don’t know, and with real estate transactions usually the biggest investment most people will ever make, mistakes can be very expensive. We established in an earlier post that everyone is an expert at real estate, and everyone really is, only to a very limited degree. When discussing ways I can help buyers or sellers in their real estate dealings, I always acknowledge that there are things the consumer may know better than I do. Sellers know their neighborhood better than I do, buyers know why a particular school is the best fit for their child. Accountants may understand the tax implications of a deal better than I do, builders may understand how a house was built better. But I do understand real estate, which can sometimes be a hard thing to explain and to quantify, but is very important to helping people make good choices and decisions when buying or selling. Understanding real estate often means knowing a little bit about a wide range of subjects because real estate encompasses a lot of very complicated fields. Being able to use real estate knowledge to turn the vast information available into good advice and guidance is the key benefit a good real estate agent can provide.
Real estate agents get asked a lot of questions by their clients and many agents will never utter the words “I don’t know” out of fear that their clients won’t think the agent is worth the big commission they stand to make and will go find someone who can answer all their questions immediately. But most real estate questions are not simple yes or no, black or white questions. The answer often depends on knowing more about the particular set of circumstances involved or the particular needs and wants of the person asking the question. The answer often requires knowledge and experience to evaluate the given information. Often when I am asked a question, I respond with a question of my own, so I can better understand why the question was asked and gather enough information that I can apply my real estate knowledge to giving an answer that is helpful rather than one that is expected.
Real estate knowledge can be gained in a variety of ways, but I think experience is by far the best teacher. Having dealt with hundreds of buyers and sellers and answering their thousands of questions is an invaluable teaching tool. Attending home inspections, talking with lenders, sitting through closings, looking at surveys, etc. are all valuable in the learning process if you pay attention and ask questions of your own. Problems come up in just about every real estate deal at some point, being able to take the available information and use accumulated real estate knowledge to provide a workable solution is a skill that can not be replaced by experts whether they are found on line or are well meaning family friends, etc.