Realtors from reputable firms can be trustworthy most of the time. However, that doesn’t mean that they are telling you everything you need to know as a seller or as a buyer.
Let us divulge seven secrets you’ll surely want to know :
1. The best properties are sometimes not listed.
There is what realtors call the “reservation system” where the really good properties are directly offered to wealthy buyers before putting them on the market. Sometimes, the realtors would advise sellers to wait for a possible negotiation before putting the property in the Multiple Listing Service (MLS) database because this usually gives them higher commission but lower marketing expense.
This “reservation system” is the reason why we exist. As a property finder and real estate agents, www.li-realestatefinder.com helps to list all the best options for buyers and find the best realtor for the job.
2. A property may not be as valuable as the seller thinks it is.
An experienced realtor would easily know a real estate’s real value with just one inspection. Sometimes, the address gives it all.
However, most realtors won’t tell sellers that their houses are not as valuable as they think they are for two reasons. First, they don’t want to offend the sellers, especially if the hard-earned properties have a lot of precious memories with them. Second, they don’t want to lose the sellers as clients. Most of the time, realtors would wait for the signing first before breaking the news to the sellers.
The good news is that they would still tell the sellers the truth at some point in the process of marketing. Whether the sellers will take it lightly or not is the big problem.
3. Realtors are mandated by law to report major property issues to buyers.
It’s included in their legal obligations when they were given license by the state. Any problems about the real estate they are selling, whether personally discovered or declared by the seller, should be reported to all buyers. This is good news for buyers, but definitely not for sellers and realtors. Obviously, problems can push prices down, which give realtors lower commissions.
It’s hard to go around this violation if a buyer doesn’t know that there is a violation to begin with. Hence, all buyers should be vigilant. The information we provide in this website are intended for that reason.
4. All offers should be recorded in black and white.
Every offer a buyer makes should be put on paper for formality and disclosure. Some realtors think that this is an unnecessary step since the information would be passed on to the seller anyway. So, why bother writing down and printing every step of the negotiation? It’s because any problem that emerges as the negotiation pushes through usually requires documentary support. It doesn’t hurt to be too safe, does it?
5. Commissions are not untouchable.
Normally, commissions are not even talked about between a realtor and buyer. In fact, the commission is none of the buyer’s concern. This is a matter between the seller and the realtor.
However, for the sake of transparency, a buyer should know that realtors could always change their commission rate if they want to. In fact, many of them do it to close deals of a lifetime or please special and loyal clients.
In the real estate industry, a lowered commission is still far better than a lost commission. When both the seller and buyer are adamant on their prices, sometimes, it is the realtor that gets in between to meet the price, even if it means giving up half of his commission. This is usually the case for properties that have been in the market with no prospective buyers for a long time. It’s only natural that a realtor would immediately jump on the opportunity that rarely happens.
6. Realtors are not financial advisers.
If you think that heeding a realtor’s advice regarding investments is a smart move, it shows how gullible you can be out there. Realtors are trained and licensed to sell, not give financial advice. As a matter of fact, many of them have no idea about financial management at all.
They are more on the negotiation part. They know how to convince people. They know how to pamper their clients. They know the properties they are selling and the real estate industry they are moving around. However, they are not experts when it comes to making your money grow. Managing a property is also the job of property managers.
7. Seventy percent of show requests go unanswered.
Seven out of 10 people who inquire about a listed property do not get the answer they need. You are very lucky if you always belong to the 30%.
Realtors are busy negotiating with buyers and arranging selling terms and prices with sellers. They have a queue of buyers from which they can get commissions, so a request usually falls on deaf ears.
Most realtors prioritize clients who they think are really serious in buying. These are the ones who make a call during office hours and talk to the realtor in person. Why would a realtor entertain faceless inquirers if he has a lot of potential buyers stepping in right into his office?