How not to get ripped off when buying or selling a property

Written by Posted On Tuesday, 23 October 2018 00:34

Purchase or sale of a house is perhaps the highly significant financial solution you make throughout your life. When it is time to sell or buy a property, people often have a long list of questions in mind. Will I receive a proper sum of money for my property? Will I find a buyer within a reasonable timeframe? Will my agent provide me all of the services and I pay a fair price for it? Though you apparently gain a good understanding of the price you would like to get after the deal, you may have difficulties to sort out whether you receive a great service from an agent and when you are getting ripped off.

If you talk only to one agent before you make a choice which one to deal with, you do not have a chance to compare his or her prices, provided services and requirements. In this case you might not notice certain significant signals that you do not receive a service that you need. Apart from states where it is authorized, a common real estate transaction does not a lawyer’s approval. However, only a lawyer is allowed to prepare the property purchase documents and close the deal in some states. So, here is a list of warning signs from professional lawyers.

Your agent’s office is full of luxury items

When you walk in your agent’s office in a fashionable area for the first time you may be impressed by a marbled lobby, expensive furniture, gorgeous water fountain, and the like. It might leave a strong impression, but it shouldn’t! Each of these décor elements will not help to sell your house easily and fast but it will cost you more eventually. If your agent has a really high rental fee, this cost will be included in higher rates for you. Once you understand that, you probably want like it any more.

Your agent is eager to do open houses too often

There were probably times in the past when open houses were the best way to look at the house. Nowadays, only about 45% of buyers choose this time-consuming meetings which are a great chance mostly for the agents who have an opportunity for income-generating clues. If your agent recommends this event insistently, take a closer look at where your agent’s priority task lies.

Your agent does not provide with MLS sheet

Are you aware that your agent’s version of MLS sheet includes sensitive data including what your agent get if you decide to purchase one kind of property in comparison to another? If your agent opts out to reveal this sheet for you, he or she muddies the water and wouldn’t work out in the open.

Your agent saves on showing services

E-signature is a pretty costly instrument in real estate industry. But it is extremely useful for achieving the clarity of a sale. If an agent is not willing to contribute to the success of the deal with the help of such services, you are most likely to refuse the assistance of this expert.

Your agent withholds information on costs

During the past years, commissions on a property grew at an average of 6 percent of its sale price, however, it is not absolutely true. As each property and resources that should be spent for its selling will differ a bit, in most cases the agent is ready to discuss the rate. Figure out asap whether your agent will go over a commission rate and respond to such questions:

- What is the commission amount?

Every little detail regarding a commission should be set out in a listing contract, which is an agreement concluded between a seller and an agent.  This document should present the terms and the services the agent will deliver to reduce the burden associated with the sale. It’s not always possible to reach agreement with an agent, but in a certain case an agent will agree to take a lower amount to win your business.

- Who pays the commission?

As a rule, the commission should be charged at once from the sale profit and most sellers indicate that amount directly in the list price. Thus, it may well be that a buyer and a seller consider otherwise agreed for covering the commission expenses. In certain instances, a buyer may suggest to pay a part or the whole amount of the commission so that to make an offer on a property increasingly competitive with other proposals.

- What do you receive when you pay a commission?

When you sign the contract to deal with an expert you have to find out what service you will receive in return for the sum you’re going to pay. If you don’t need an agent’s service in a certain field, inform him or her that you’ve already lined up a buyer for instance and want to agree a lower commission.

Your agent insists on his or her inspector

Most agents deal with numerous property inspectors and can share with a list of telephone numbers. Whether you decide to work with one of the referenced professionals or prefer to look for one among acquaintances, it’s really non-trivial to undertake your own research. Find some time to search for surveys in the net and ask for recommendations. Even though you want to hire a person your real estate expert suggests, enquire detailed information about this person and ensure he or she requests a reasonable fee.

Your agent plays your fear of loss

Jonathan Hopper who has 20 years of experience in property industry and is a managing director of buying agency, states that some estate agents use the common ploy in order to boost stronger interest and foster prospective purchasers to make higher offers. Sometimes if a an agent realizes that you are really interested in buying, he or she may use a clever common ruse such as 'another potential buyer.' It's uncanny how skillfully they compel a sense of loss to a confused buyer. So, the advice here is not to fall for that ingenious move as it may be just a tool that the agent is using. To protect yourself from this ploy just show that you understand what the price should be.

Bottom line

The real estate industry is a gloomy area as there is a plenty of agencies nowadays raving about the gravy train and anyone whose vigilance is reduced. In this case, more crucial than ever you have to remain calm and extremely critical of any promising assurances being told to you by any agent you talked to. Rushing off to sell or buy a property at the earliest possible date substantially enhances the stress that can bring about the most rational person to act prematurely and make hasty missteps. Of course, the best advice is to make inquiries about your agent beforehand. Feel free to ask questions about your agent’s readiness to negotiate, his or her attitude to open houses and a standard payment scheme. Posing these questions in person will present an excellent opportunity to check where your money will actually be spent right.

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