The Stuff that Real Estate Agents Don’t Want You to Know: Our Hot Tips how not to Get Screwed
Real estate agents are there for one thing, they just want to sell to earn their commission. They are not there for the vendor and the buyer is their last priority. It is best to make sure you don’t pay a high price for putting your foot in it.
Buying a property in today’s market is a bit like a three man tango with everyone wanting to lead, involving you, the cunning real estate agent and the secretive seller. Agents are trained and experienced in know who to manage and deal with buyers. They know what to ask them, how to impress them but some buyers still talk to agents like they are their best friend. They are not. They may be really nice and even likeable, but it’s because they want your signature on the contract of sale so that they can get their pay day. It may seem insignificant, but the conversation of buyers use can be the difference between paying a fair price and paying more than market value.
Here are some valuable insights:
Never be too Keen …
Buyers need to be careful to not say too much why they are purchasing; for instance never say that “you have sold your home and have to buy new home and home in a fortnight”. Say very little about your situation as there is no way you should give ammunition to the agent to use against you. You really need to be the “indifferent buyer and never let them know your motivation.
If you’re buying property with your spouse, let one person do all of the talking and have all the communication with the agent otherwise the agent will easily play one of you off against each other.
This house is worth …
Agents may ask for your estimation on what the property is worth. Avoid this trap as it is just a way for an agent to gauge how much you would be willing to pay. We suggest responding by telling them I like to do my research first or flip it around and ask them what they think it is worth.
Tell them you are there to find out the value from them after all they should be the expert!
Money to burn …
An agent wants to know how much you have to spend, but buying a property is no different from any other negotiation. You should never reveal how much you are prepared to spend. There is no obligation on you to reveal how much you have to spend. Like in all things, there are good agents and bad agents. Simply an agent is trying to ascertain is whether you have the money to reach where they are hoping the vendor will agree to sell the property.
It is best to give agents a very rough figure in your range. Once they know your real budget an agent will do everything they can to extract every dollar out of you, especially if they haven’t reached the sellers bottom line.
We want this place …
The biggest mistake you could do is jump in front of a moving bus which is effectively the same as saying you want this place is the first four words you say to the agent. Those four words are very difficult to come back from.
Buying a home is all about emotion and agents are unscrupulous traders of this emotion of buying. You can’t afford to be so aloof and cool that you seem completely uninterested. You should always say you are buying for investment purposes so that the agent clearly knows this is not an emotional based purchase decision.
Please never run around picking out kids bedrooms and telling them where the furniture will go. This is a big no-no! If you unable to divorce emotion from house hunting then it may be worth using the services of a buyer’s agent.