I don’t want you to fall victim to one of those people, and if you’re getting into real estate yourself, I want you to know how get ahead with honesty and good work.
Here are 4 dirty real estate tricks to watch out for…
Being successful in real estate could be the difference between finding your dream home and just another house, the difference between obtaining a passive income to retire on and a hobby, and the difference between making big money and losing big money.
I want you to have every opportunity to benefit from your real estate experience exactly how you want, which is why you need to know about these 4 dirty real estate tricks:
1. Selective Disclosure
I’m sure you’ve heard a version of this story: A couple purchased a house for what they thought was a good price. However, their real estate agent didn’t get full disclosure from the seller. It turns out that the house was the site of multiple homicides and was considered to be haunted. The couple then couldn’t sell the house because they always provided full disclosure.
Make it a point to always include full disclosure in any real estate deal. Selective disclosure on anyone’s part could make for a horrible transaction.
2. Agents Using Own Buyers
Bad real estate agents will sometimes try to double-up on commission by heavily favoring their own buyers when selling a property for you. They basically withhold offers and inquiries from other real estate agents and only show you those from his or her own clients. That way, the real estate agent doesn’t have to split commission with another agent and can keep everything to him or herself for both the purchase and sale.
Get it in writing that your agent will present you with all offers and inquiries fairly.
3. False Selling Price
When shopping around for a real estate agent, you may come across someone who gives you a much higher selling price for the house you’re trying to sell than the other agents. That agent knows you want to hear a high selling price, so he’ll give it to you even if it’s wildly inaccurate.
Shortly after being selected, that agent will then tell you the market has softened and that the selling price has to be lowered to what the other real estate agents had originally told you. That puts you in danger of having to drop the price further if prospective buyers see the big price drop and smell blood in the water.
Don’t get duped by this dirty trick. Look for an honest pricing.
When you agree to go with a real estate agent and pay advertising fees, make sure you first get specific marketing plans and sign off. Know what the advertising money will be spent on. Otherwise, the real estate agent may use the advertising money to promote him or herself rather than the house you’re trying to sell.