What Real Estate Agents Don’T Want You to Know About Buying a Home
In a perfect world everyone would do their jobs selflessly and happily, everyone looking out for the safety and well-being of others. Unfortunately this is not always the case, and when people are in a position of vulnerability they are more likely to be taken advantage of. If you are in the position of buying a home you are likely looking for a real estate agent that you can trust absolutely to get the best home buying experience you can. We hope you find a great real estate agent! Here are a few things to watch out for so that you don't get taken advantage of by a real estate agent, accidentally or on purpose.
1. They might withhold neighborhood information. Real estate agents want to make a sale on a property sometimes regardless of other factors. If a real estate agent has been working with the home for sale for a bit of time they will know the ins and outs of the neighborhood and what is happening in the real estate market in the area. They are most likely to know about local information like a potential (or immanent) construction site, schools, parks, malls, etc. Some houses you are looking at might be located in a place where a realtor would want to withhold negative information about the home or neighborhood to make you more likely to buy.
2. You have the power to negotiate. Do a little research on the average commission rates of brokers doing business on the home for sale. You might find that you are able to negotiate a better commission rate depending on if the commission goes to the buyer's and the seller's agents. You can also negotiate the listing agreement (for instance, cutting it does form six months to three) so as to better get out of a contract if your agent isn't doing a good job. In addition, always ask about hidden fees.
3. Home inspections may not be entirely unbiased. In the process of buying a house a real estate agent will usually give the interested buyers a list of inspectors who can come and double check that the house is up to code in every way. Unfortunately these referrals are not always high-quality, so make sure you do some research on the inspectors before they come. Make sure they are a part of the American Society of Home Inspectors and request their inspection report when they are done looking at the house.
4. Your secrets might not be safe with a real estate agent. Watch what you say when you are with your realtor or the seller's broker- if you mention the price you're willing to pay they will take that information back to the seller because they want what is best for the client.
5. Finally, real estate agents don't want you to know that sometimes, a few changes here and there could dramatically increase the sales price of your house or, on the other hand, pointing out areas of the property that need to be fixed could dramatically reduce the sales price for a buyer. Keep in mind that real estate agents want to turn over a property as fast as they can.
1. They might withhold neighborhood information. Real estate agents want to make a sale on a property sometimes regardless of other factors. If a real estate agent has been working with the home for sale for a bit of time they will know the ins and outs of the neighborhood and what is happening in the real estate market in the area. They are most likely to know about local information like a potential (or immanent) construction site, schools, parks, malls, etc. Some houses you are looking at might be located in a place where a realtor would want to withhold negative information about the home or neighborhood to make you more likely to buy.
2. You have the power to negotiate. Do a little research on the average commission rates of brokers doing business on the home for sale. You might find that you are able to negotiate a better commission rate depending on if the commission goes to the buyer's and the seller's agents. You can also negotiate the listing agreement (for instance, cutting it does form six months to three) so as to better get out of a contract if your agent isn't doing a good job. In addition, always ask about hidden fees.
3. Home inspections may not be entirely unbiased. In the process of buying a house a real estate agent will usually give the interested buyers a list of inspectors who can come and double check that the house is up to code in every way. Unfortunately these referrals are not always high-quality, so make sure you do some research on the inspectors before they come. Make sure they are a part of the American Society of Home Inspectors and request their inspection report when they are done looking at the house.
4. Your secrets might not be safe with a real estate agent. Watch what you say when you are with your realtor or the seller's broker- if you mention the price you're willing to pay they will take that information back to the seller because they want what is best for the client.
5. Finally, real estate agents don't want you to know that sometimes, a few changes here and there could dramatically increase the sales price of your house or, on the other hand, pointing out areas of the property that need to be fixed could dramatically reduce the sales price for a buyer. Keep in mind that real estate agents want to turn over a property as fast as they can.