It is not uncommon for the realtors to use dubious tactics to increase sales. They can rush you into signing an agreement or even over promise prices to speed up the sale. A survey on real estate brokers has revealed such practices do exist. It is disturbing to know that only a small percentage of brokers consider them wrong.
Here is a list of 10 most immoral real estate practices that every buyer should be aware of:
1. The listing agent informs there is huge demand for the property which is not the truth –
Don’t be surprised when the agent tells you you have slim chances of getting the property if you bargain too much or take longer to reach a decision as there are several offers from other buyers. 31.8% of the realtors surveyed accepted it was a common practice to seal the deal faster.
2. Your agent won’t show properties with lower-than-typical cooperating compensation allowed by listing agents –
This is not at all in the favor of the buyer, but 61.8% of the real estate dealers called it objectionable. The remaining percentage does not have any qualms about this and they are quite big in number.
3. As a buyer you won’t get introduced to homes by your agent that are listed by brokerage companies on the basis of past experience and reputation –
20.1% realtors accepted it was one of the commonest ways of taking the deal forward. Even though the percentage was not on the higher side, yet it is enough to make you doubtful about a seemingly fair deal.
4. The agent may show their own listing or company’s listings depending on their preference – 49.6% of the participants to the survey thought it was okay to follow which clearly reveals breach of trust is common in real estate dealings. You cannot really depend on the broker if you are expecting transparency.
5. Your agent won’t represent you if you wish to buy for-sale-by-owner property –
Yes, this is fact. If you have been thinking hiring an agent will help you with any type of house purchase, you will be in for a rude shock. In case you want to purchase a home that does not involve a broker, you have to contact the seller on your own.
6. You will not know the referral fees the referring agent will receive – 59.8% of the agents thought it is the way to do business. But, it is not in favor of the buyer as huge referral fees earned by the agent means you could be driven into a deal that may not be beneficial for you.
7. Agent can refer you to another agent with no knowledge about the service quality and value they provide – As much as 33.1% of the agents thought it was a common practice, but it is definitely harmful for unsuspecting buyers. The agent referred may pay the referring agent as much as 20% of the commission. This is an eye-opener for buyers.
8. Unrealistic prices are accepted by listing agents to enhance marketing opportunity – Buyers who are unrepresented get trapped. The company tries to cover the marketing fees through such high prices. However, the property may not be sold at the listed price and it is the seller who suffers.
9. The agent you hired could be representing the seller in the same deal – Surprisingly enough, 40.9% of the realtors thought this practice was very common and acceptable. It is a shocking truth, but it is there. How can you hope your interests will be safeguarded when the agent is operating on behalf of the two opposite sides?
10. Agent divulges critical information to the seller in the bid to close the deal faster – Believe it or not they do it. Even before the negotiations, the agent may reveal the lowest amount you are ready to pay for the property. This robs you of the opportunity to get lower rates.
While it is not possible to go without an agent when buying a home, yet the revelation of the worst practices rampant in the real estate market should put you on your guard.
Article Source: http://EzineArticles.com/9559088