Lies To Watch Out For That Real Estate Brokers Could Tell You
Most real estate brokers are knowledgeable professionals that take pride in their work and in helping their clients. However, there are unfortunately some common ‘tall tales’ that real estate professionals can tell if they are of less than scrupulous character. The world of real estate can be treacherous for the uninitiated, but with a little guidance, you can avoid any unnecessary turmoil.
Brokerage Fees are Not Negotiable
Brokers and agents fees, typically referred to as the ‘commission,’ are always negotiable before a contract is signed. A real estate agent has the option to negotiate their fees and to lower them accordingly if asked, during the initial negotiation period. It is also possible for an agent to put part of their commission towards the buyer’s closing costs in some states. Once a contract with an agent has been negotiated and signed; however, it is much harder to ask for a lower fee or contribution. Luckily for buyers, in most states, the buyer’s agent’s fees are paid by the seller and should be no additional cost to the buyer.
I’ll Walk You Through The Process
This is only a lie if an incompetent broker says it. Most brokers understand that a happy client is a returning client, and won’t leave their customers to navigate the turbulent waters of a problematic deal alone. If you happen to use an agent who doesn’t help you or return your phone calls, you may feel like you’ve been left high and dry. If this happens to you, it’s important to remember that you are not obliged to work with an agent that you are not happy with. Read any contract thoroughly before you sign it.
It’s The Best Time to Buy
The best time to buy for one person is often not the best time to buy for another. Your financial picture determines whether it is a good time to buy or not. Of course, everyone would like to buy at the bottom of the market and turn a huge profit, but that’s not always feasible. Finding a knowledgeable lender and an affordable loan is the most crucial part of the buying process and should be treated accordingly. Some agents may also lead you to believe that they can see into the future of interest rates by telling you that you have to buy now to avoid higher rates. Again, the time to buy a home is dependent on your circumstances. For example, if you buy because the of the low-interest rate but only have a small down payment available, your PMI could end up costing more throughout your loan than a higher rate would have. Speak to your mortgage advisor to find out what you can afford, not your real estate broker.
There Is Another Buyer Interested
Mentioning ‘another buyer’ is one of the scare tactics that a dishonest agent may use in order to push their buyer into making an offer more quickly. By making the house seem in demand, this lie creates a sense of urgency and more often than not results in buyers remorse. If you are searching for a home in a particularly competitive market, it may be true that several buyers are interested in the same property or a multiple offer situation is in play. One of the ways to differentiate between fact and fiction, is to ask the broker a specific question such as, ‘Are there currently any offers being presented to the seller?” The answer to this can help you to determine how serious the other buyer is, or if they exist at all!