If you have hired a real estate agent to sell your home, you shouldn’t assume he or she is going to share everything with you. There are a few tricks of the trade that most agents usually keep to themselves. Here are five things that Fargo ND real estate agents will never tell you:
The true purpose behind open house
Most real estate agents put too much emphasis on hosting an open house. They will tell you that an open house will help you sell your home faster and for top dollar as it will create competition among prospective buyers, but is this argument really true? Nine times out of ten, it is not.
Even the National Association of Realtors found in a study that hosting an open house would not guarantee an offer. On the other hand, an open house is a great opportunity for real estate agents to meet prospective clients. Your agent will be more interested in finding new clients than selling your home.
Their commission is negotiable
If you are planning to sell your home, you must have heard a thousand times that you will have to pay at least six percent of the property’s purchase price as commission to your real estate agent. Nothing can be further from the truth. You can negotiate your agent’s fee to get a better deal, particularly if you are selling in a buyer’s market and there is competition among agents.
They are not lawyers or mortgage brokers
In order to impress their clients, some real estate agents don’t hesitate to dispense legal and financial advice. Most agents don’t have expertise in complex legal and financial aspects of a property transaction. But instead of asking their clients to consult with a lawyer or a broker, they would boast of their shallow knowledge in these matters. It can land you in troubles in extreme cases.
They’ll tell you about all offers
Real estate agents are legally required to inform you about all the offers that they receive on your home, but some realtors don’t strictly follow this obligation. In order to receive a hefty commission, they will want to avoid lowball offers and may choose to keep you out of the loop. While you too want to sell your home for the highest possible price, you should still ask your realtor to tell you about all the offers.
It’s an in-house listing
Don’t be surprised if the two agents – representing you and the buyer – are working for the same real estate franchise, brokerage or company. Most states in the U.S. don’t allow ‘dual representation’, but there are certain ways to circumvent this regulation.
It is important to hire an agent who is honest and follows a code of ethics. Before choosing an agent, you should dig up some information about his or her reputation in the industry and background. You should check reviews left on the agent’s Zillow or Trulia profiles and can even talk to his or her former clients.