A little Cautious Way of Dealing with Real Estate Agents

Sometimes real estate agents tend to trick buyers and these are becoming rampant with each passing day. However, if a buyer remains a little cautious, then searching for a property, even with a dealers’ assistance becomes easier. The post explains few ways of dealing with dealers’ tricks.

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Buying a property often involves dealing with an agent. While, we do derive extensive information from them about buying and selling properties, we must understand that they are not a buyers’ friend. This is said because, often times buyers end up completely trusting these real estate agents, thus getting trapped in their tricks. Before you think of hiring a real estate agent, glance through the following paragraphs:

- Understand that real estate agents are not a buyers’ friends; they are mere businesspersons who work for the seller, get them the best possible deal and in return the buyer pays them.

- There are very few real estate agents who work on salary

- Most real estate agents earn through commission. If an agent is unable to close a transaction, he or she does not get paid.

However, having said all these, we must understand often we are tricked by agents; especially first time home buyers who have resorted to a real estate agent. So, it is advisable that you do not get tempted about explaining everything to the agent. Such information might be used against you, thus leading you to finally compromising on your chosen residential property. The agent will get an idea and will know how far he can push you if he is already aware that you have already missed out on three/four properties before you approached this particular one. But do not be afraid of getting your points across with the dealer. Some tips of dealing with dealers’ tricks are explained below:

You Need to Approach an Agent

Do not expect that an agent will send you properties if they are available. It is better that you remain a little proactive in the house hunting process and remain involved with the agent throughout the process. Go and check out properties with the agent if possible. You will not only get to see various types of properties all by yourself, but will get to learn a lot through this process.

Bank Valuation does not benefit the Buyer

Often a buyer is fooled by the fact that bank valuation benefits the buyer; understand that a bank valuation is for the lender and not for the buyer.

Agents get paid only after the Transaction is over

Well, this is one of the most important aspects while it comes to dealing with a real estate agent. Since they are paid only after the transaction is over, they will always be keen on helping a serious buyer. So make sure that you project yourself as a serious buyer and monetary transactions are not a constraint.

Ignore any kind of incentives or discounts offered by the Agent

This is one of the major tricks played by real estate agents. They use incentives and discounts to lure their customers. If someone pays your moving costs or your stamp duty, then it is included in the price and you will have to repay it above and over the next 25 years’ of your mortgage.

Confirm every Conversation that you have with your agent

While verbal communication is important, make sure that you confirm every conversation that you have with your agent. Ask for an agreement if possible. Alternately, do not forget to keep a track of the appointments engaged in, any kind of offers made or any bids that were rejected along with terms and conditions. If you do so, it will give the agents an impression that not only you have genuine interest in the buy/sell process but your are aware about the basic process involved in property dealing.

Never opt for your Finances from the Agents’ Services

Dealing with finance is an integral part of the entire buy-sell-rent process; always opt for a reliable adviser. You may get the quote from the agent, but do not forget to discuss finances with your mortgage advisor.

Cross-check everything that an Agent Tells you

Never trust an agent blindly; always cross check everything that an agent tells you regarding a property or a location. Visit locations in person so that you get a fair enough idea about location as well the property.

While, agents do tend to trick buyers, hiring them also has an advantage as house-hunting becomes a little easier. If you are pro-active and take the above-mentioned precautions while dealing with an agent – searching for a property through agents can yield good results.