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.
- 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