Buying or selling a home is a big deal. People should be careful about how they handle the details of the transaction. One of the first things that you should do if you’re in this situation is choosing a realtor.
There are many people there claiming to be legitimate real estate agents. It's up to you to find out whether the person is actually credible. Understanding what you should be avoiding will help draw a big line between the right and the wrong realtor.
Keep reading to check out some things to watch out for when choosing a realtor.
1. They Try to Overprice Your House
You want to sell your house at the highest price possible, and some realtors will take this to their advantage. This is referred to as “buying a listing.” It’s not purchasing your house, but getting the right to sell by overpricing it.
They’ll then wait for three months, show you that you overpriced your house, sell it at a lower price and cash your cheque.
Do your research and know what the competition is like in the market. Ask your agent to justify their claim to be able to sell your house at a high price. If all they give you a suspicious answer you may have to rethink your decision.
Interview many realtors, compare their prices and fire the ones over-promising to narrow down your choices.
2. They Claim to Have an Interested Buyer
Be careful with realtors that claim to have interested buyers, especially when you're listing expired. Some realtors may make it seem like they are bringing in leads for the home. However, this may be false.
The claimed buyer might be anyone. The agent is simply saying there are more than millions who might or not be interested in buying your home. But the only way to get to them is by being on their listing.
This is an underhanded way to get a listing and it shows that an agent is into using tricks instead of genuine tactics.
3. They are Part-Time Agents
Some people begin working as real estate agents as they maintain their jobs to pay bills. When picking a real estate agent, you may want to work with someone who does it full time.
You want someone who has enough time to research the market and get the right resources to serve you. A full-time realtor will have active listings, and if you’re selling a house, you need someone available to show the potential buyers your home.
4. They Charge Low Commissions
In most cases, commissions are a 5-7% split between selling and buying agent. If your house has a low commission, not many agents are willing to show it. However, you can still negotiate a discount if one agent ends up listing and selling your house.
If you come along a real agent who is offering a low commission or is ready to discount their prices easily, this may be a concern.
Remember, cheap can be very expensive.
5. They Aren't Assertive
Your house may be worth much less than you thought it would be. Something to keep in mind is having an honest and upfront person to tell you the reality of the situation.
You need someone who can face you and tell you the truth about your house value. This also includes issues in your house that are affecting your market value. When choosing a realtor, be sure to pick one who can set the record straight on how long you may be on the market -or if you can even sell.
This can be hard for the agents because they want to protect their future customers and referrals. Yet you want an agent who will tell you the truth even when it’s not what you want to hear.
6. They Can’t Explain Their Uniqueness
“All realtors operate the same way,” is a common saying among home buyers and sellers. This does happen to be true for many realtors. Many agents think all they need to do is get the paper signed and listing it on the MLS.
However, there is a difference between a bad and a great agent. The latter can explain why you’d want to work with them instead of other realtors.
You should ask an agent what sets them apart. Also, inquire about their process of dealing with clients. If they can’t answer these questions, then this is a red flag.
7. They’re the Only Realtor You Interviewed
Most home sellers only interview one agent when choosing a realtor. Finding the right person may take some time. It's best to go through a few qualified candidates to get a feel for different personalities.
Even if you’re using a real estate agent you’ve worked before, shopping around may give you an idea of what to expect from them.
8. They Give Guarantees
These are agents who promise to either sell your home or buy it. What they don’t tell you is that they will not buy at the listing price but a low price that they’ll benefit from eventually.
An honest real estate agent will tell you there is no guarantee in real estate. A good agent will only promise to work hard to maximize your home’s benefits to get you the best price the market allows.
Do You Want More Tips on Choosing a Realtor?
When buying or selling a house, choosing a realtor is the most important part of the process. You want someone who understands the market. Find an agent that evaluates the competition and gives you the best price possible.
Overall look for someone that will be honest and trustworthy. If you want more tips on buying or selling a house, visit our blog.