Your house is probably the biggest purchase you’ll ever make, so it’s important to place your trust in a real estate agent that’s looking out for you. Most real estate agents are trustworthy, but there are a few bad apples that leave people skeptical of real estate agents.
Is your real estate agent actually looking out for your best interest, or are they just working to get themselves the biggest commission? Read on to learn the signs of a bad real estate agent so that you can protect yourself.
Thinking of buying a house? Learn how to save money for a down payment.
Is Your Real Estate Agent Taking Advantage of You?
Real Estate Agencts With Lack Of Experience
While some real estate agents may deliberately try to screw you, some may simply not be very good at their job.
In the real estate game, time is of the essence. When buying a house, you want to make sure that you buy your property quickly enough that someone doesn’t buy the house out from under you. If your real estate agent doesn’t provide the lender with the complete and accurate information they request, your purchase may be delayed or may even fall apart.
Here’s a checklist of all the documents you’ll need to buy a house.
A good real estate agent should know how to best handle your specific real estate transaction. There’s a big difference between selling a house and selling agricultural land, for example. If your agent has a good track record with your kind of real estate transaction, then you know that they’ll consider all the factors involved that can get forgotten and can leave you on the hook for thousands of dollars.
In some cases, the buyers have the right to ask sellers to make repairs as a condition of making a deal. If the buyers and their agents miss the deadline to complete a home inspection and to request repairs, the buyers would be on the hook for doing this themselves.
Check out when you should get pre-approved vs pre-qualified for a mortgage.
Shows You Their Own Listings
A bad real estate agent may try to take advantage of you by showing you their own listings.
When your property sells, your real estate agent receives a commission. The listing and selling agencies split this commission, but if your real estate agent shows you their own listing, they receive both parts of the commission. Be wary of agents who show you their own listings.
Should you rent or buy a house?
They Try To Sell Your House Too Quickly
Some real estate agents focus on selling your house quickly. They get a lower commission because they’re not waiting around for higher offers, but they can quickly move on to selling other houses. They get more commission because they’re selling under-priced houses quickly instead of full-priced houses more slowly, and you’re the one who’s been lowballed in the process.
Deal only with real estate agents who take the time to sell your house for its true value.
Learn how to properly save and budget for a mortgage.
They Try To Upsell
Picture this: your real estate agent has found your dream house, only it goes slightly above your budget. You should just pay a little more, right? It is your dream house after all!
Not necessarily. Agents who sell you a house that is above your price range get higher commissions. They will try to convince you by saying that it will only be a couple of hundred dollars extra per month. If you buy the house, you could be stuck making payments for years on a house that you can’t afford. Make sure to stick to your guns and stay within your price range.
Check out what it means to be house poor.
Manipulates Market Analysis
Listing agents usually put together a market analysis when listing a house so that they can compare the house to similar nearby houses that recently sold. They can manipulate the prices of the houses they’re comparing to so that they can overvalue the house.
Having the house appraised by a certified appraiser is the best way to determine the house’s true value.
Check out this mortgage refinancing appraisal checklist.
Additional Reading
Bottom Line
While there are some bad apples, most real estate agents actually are looking out for your best interest. If you can spot the signs of a dishonest real estate agent, you’ll be able to protect yourself and find a real estate agent who can get you what you want.
