It’s not uncommon for real estate agents to use questionable tactics to increase sales. They may rush you to sign a deal or even over the promised prices to speed up the sale. A survey of real estate brokers revealed that such practices exist. It is disturbing to know that only a small percentage of brokers consider them to be wrong.
Here is a list of the 10 most immoral real estate practices that every buyer should be aware of:
1. Listing agent informs that there is a huge demand for the property, which is not the truth –
Don’t be surprised when the agent tells you that you have a low chance of getting the property if you over-negotiate or take more time to make a decision, as there are several offers from other buyers. 31.8% of real estate agents surveyed admitted that it was common to close the deal faster.
2. Your agent will not post properties with lower co-op pay than the average listing agents allow –
This is not in favor of the buyer at all, but 61.8% of real estate brokers called it objectionable. The remaining percentage have no qualms about it and there are quite a few of them.
3. As a buyer you will not be introduced to homes by your agent which are listed by brokerage firms based on past experience and reputation –
20.1% of realtors admitted this was one of the most common ways to move the deal forward. Even if the percentage was not higher, it is enough to make you doubt a seemingly fair deal.
4. Agent can display their own or company ad based on their preferences – 49.6% of survey respondents believed it was acceptable to follow what clearly shows abuse trust is common in real estate transactions. You can’t really depend on the broker if you expect transparency.
5. Your agent will not represent you if you want to buy a property for sale by owner –
Yes, it is a fact. If you think that hiring an agent will help you with any type of home purchase, you will be in shock. If you want to buy a house that does not involve a broker, you must contact the seller on your own.
6. You will not know the referral fees the referring agent will receive
– 59.8% of agents think this is the way to do business. But that’s not in favor of the buyer, as the huge referral fee the agent collects means you might be tricked into a deal that might not be of benefit to you.
7. The agent may refer you to another agent without any knowledge of the quality of service and the value they provide – As much as 33.1% of agents thought it was common practice, but it is certainly harmful to unsuspecting buyers. The referred agent can pay the referring agent up to 20% of the commission. It’s a revelation for buyers.
8. Unrealistic prices are accepted by listing agents to improve marketing opportunities – Buyers who are not represented are trapped. The company tries to cover the marketing costs with such high prices. However, the property cannot be sold at the stated price and it is the seller who suffers.
9. The agent you hired could represent the seller in the same transaction – Surprisingly, 40.9% of real estate agents thought this practice was very common and acceptable. It’s a shocking truth, but it is there. How can you expect your interests to be protected when the agent operates on behalf of the two opposing sides?
10. The agent discloses critical information to the seller in an effort to complete the deal faster – Believe it or not, they do. Even before negotiations, the agent can reveal the lowest amount you are willing to pay for the property. This deprives you of the opportunity to obtain lower rates.
While it is not possible to do without an agent when buying a home, the revelation of the worst practices endemic to the real estate market should put you on your guard.
Article Source: http://EzineArticles.com/9559088