When considering real estate sale or purchase, using a real estate agent should be done with caution as some may not be working to the buyer’s advantage.
As a homeowner, I’ve learned a few key points of concern when buying and selling real estate. Because of my experience in working with real estate agents in the past, I have taken these key points to heart and have now chosen to sell my current home under a “for sale by owner” (FSBO) process.
- The listing real estate agent often holds the key to the rate of commission on a property for sale.
- Listing real estate agents will often show homes they list to their own buyers agents.
- The sale of a home should be negotiated, including the commission fees of the real estate agent
What Your Real Estate Agent May Not Tell You
In an effort to share my real estate experience with others, I have listed a few key points to consider when using a real estate agent as part of your team in buying or selling a home. Let’s begin with the most obvious of concerns when using a real estate agent.
Did You Know?
If you feel you are being pressured by the real estate agent, to bid on a property you are not sure you want to buy, ask the real estate agent if you can see the other bids.
Because a real estate agent works on commission, in many cases, the agent will show you not only homes that fit your budget and style but also homes that may be slightly off of your interest and budget but, yet, part of the real estate agent’s own listings.
A real estate agent may encourage you to buy a real estate property he is already listing so as to obtain the full commission, from both buyer and seller. Always be aware of this strategy as the home the real estate agent may be showing you, if also his own selling property, may not be the right real estate purchase for you.
Next, be wary of a real estate agent who is rather aggressive in your bidding on a home. Again, because the real estate agent works off of commission, it is not uncommon for the agent to lead you to believe there are many bids on a home and, therefore, you must be creative and speedy in your own bidding.
If you feel you are being pressured by the real estate agent, to bid on a property you are not sure you want to buy, ask the real estate agent if you can see the other bids. Often, when making this request, the real estate agent will quickly become more passive in the approach to selling that particular home.
Remember that all commissions are negotiable. When selling a home, always work out commission rates with your real estate agent. Often, the real estate agent will lead you to believe the commission to list and sell a home is six percent. In some cases, it may be higher or lower.
However, because this real estate commission is split or shared with the buying agent, it is important to negotiate this commission up front. In doing so, you may save yourself thousands of dollars in the sale of your home.
As with any real estate purchase or sale, the key to understanding and achieving maximum return on your real estate dollar is to educate yourself in the process of the transaction, including the variety of sales techniques employed by real estate agents.
With real estate commissions at stake, it is always recommended that you take note of the motivations of your real estate agent and, in doing so, you may find pursing a “for sale by owner” option is financially more advantageous.
- Things A Real Estate Agent May Not Tell You | Bankrate.com
- 9 Things Real Estate Agents Don’t Want You to Know — The Motley Fool
- 5 things your real estate agent may not tell you but should | Property Update
- 15 Things Your Real Estate Agent Won’t Tell You – Best Life
- Here Is a Look at the Top Lies Told By Real Estate Agents – The Balance
- 15 Secrets No Real Estate Broker Will Tell You | This Old House
John Farabaugh says
This person obviously tried to hire the cheapest real estate agents they could find in the past. For this, he or she has experienced the worst of the worst or just plain greed. Of course i am being a sumptuous, but so is this hateful person every time they use the word “MOST”. I am a real estate agent, and work every day with good real estate agents and some not so good agent.
“Your Experience or Fact” is what i would like to ask the writer of this article. How about i give you a much greater insight of the truth than this idiot can. After all, he worked with some agents over the few years, i have worked with 100s and and 100s of them!!!
Here is what you have:
1. Greedy Agents – You will have that small percentage of people that are just all about the almighty dollar for themselves….but you have them in every occupation of life..its too bad they are only exploited and exaggerated in Real Estate (or car sales). However, ‘ Most’ agents know who these greedy agents are, and we do talk about these people with disgust over luncheons.
2. The Incompentents – These morons may have good intentions but they got into real estate because they thought it would be easy money or fun and a way to pick up some additional income from their ‘Real Job’ They really don’t have a clue…. They just lack the know how, to do the proper for their clients. (they too are in most occupations…you’ve seen them in retail…or spoke to one today at a call center for customer service somewhere)
3. The Lazys – These people are everywhere in every field. You probably work with a few yourself. The agents may have a good heart and probably know what they should do to do a better job for their clients but just think it is too much work. So they give enough effort to think that they are doing a fair righteous job for their client, but most clients wont know the difference. These people are likable and even truthful. But just ….real lazy or lack the desire to put forth the extra hard work to be a professional for their client.
4. The Average – The agents are a mixed between 2 and 3. The generally try to do a good job but just fall short of a great job….or they try to do a great job but do not have the time because of their other job to just know enough to do so or have the time to put the extra effort in.
5. The ‘Cream of the Crop’ – Its these agents….!!! This is usually the TOP 20 percent! They sell 70 to 80 percent of the real estate. It doesn’t take long to get to a point where these agents are getting the majority of their business through their referrals of past clients. It is these agents that LOOK OUT FOR THEIR CLIENTS BEST INTERESTS by:
Steering them away from problem properties
Pointing out flaws within a property for their client
Doing their research and due diligence every time to make sure their client doesn’t overpay for a property
Investing time and research to find my data on properties or find properties for their clients.
Listen to their clients needs and wants, and then remind their clients of them when they get off track.
Take pride in their job and feel rewarded when they feel they have more than earned their keep.
Now this is only on the Buyers agent side….I wont even go into the sellers side…A true agent can work all day try to do his job write and can’t handle more than 10 to 12 clients at once efficiently unless he has a good system or assistant.
So now you have the “TRUTH” from someone first hand. Doesn’t my explanation make more sense??
Here is my last question to my readers? What kind of agent would you be if you had the opportunity to sell Real Estate! Which one do you think you would fall into? Would most of you be “GREEDY”??? I hardly doubt it. Real estate just doesn’t all of sudden attract the greedy people. These are normal people like your selves that really wanted to sell real estate.
Maybe our writer here is a greedy person themselves and thinks everyone is that way…..Makes you wonder when you look at it logically. It’s a good think we agents aren’t a protected class, we could take this stereotypical article and accuse this write of prejudice….Its almost like racism. “most of them….” Haha Real nice!