5 Real Estate Agent Tricks and How to Steer Clear of Them

Real Estate Agent TricksHave you ever heard the saying one bad apple spoils the whole barrel? Well it is wholly untrue and, unfortunately, the same stereotype exists in every profession, including the real estate business. There are those who conduct themselves unprofessionally in every industry and those are the ones that people tend to remember. Conversely, there are numerous Edmonton realtors that do their job and do it well – those that will get you the best return on your investment. Finding these types of agents is crucial to home buying and selling.

To help you identify who will help you and who will not, here are some potential hoodwinks you should to watch out for to ensure you find the right Edmonton realtor for you.

The Imaginary Buyer

A common gimmick that some realtors use is the imaginary buyer. It involves receiving an unsolicited letter or phone call from a realtor claiming that they have a buyer for your property. This particular trick is used to establish first contact – to get a foot in the door.

If a realtor has an actual buyer, an offer should be presented. In any other case, the realtor is most likely vying for your business. You want an attentive, transparent agent that will price your home correctly and competitively.

When undergoing training, in many cases realtors are taught that getting your foot in the door first is key and they are not above using technicality and subversive behaviour to gain your business and trust. Don’t be fooled.

Artificial Urgency

A good realtor prioritizes clientele satisfaction above profit. They guide buyers through the rough waters of home buying to reach the clients preferred destination – a home they want and can afford. If it seems like your realtor is putting unfair pressure on you, be wary. Many agents wish to make a quick sale. Since many realtors can be living paycheque to paycheque, the faster a sale is made, the faster they are paid. This isn’t a sweeping generalisation, just a cautionary word of advice.

In some cases, an agent could be attempting to “double-end” a deal. This means the realtor is representing both parties – buyer and seller – in an attempt to obtain commission from both ends of the deal. While not always a bad thing, pressure from your realtor could mean you need to keep an eye out.

 

If It Doesn’t Sell I Will Buy It

Watch out for realtors who attempt to buy your unsold house. A common tactic is to offer the seller – you – a buyout. While it isn’t subversive or shady – since a contract must be drafted with all of the usual language and details – it may not bring you out on top. It can help a realtor draw more buyers but, possibly at your expense. In this case you could be getting a price much lower than the list price – possibly down to 85 per cent of the assessed value. Go with a sound marketing plan instead.

The Bidding War Price

A bidding war is simply a competition among buyers for a particular property. Bidding wars tend to drive up a home’s price above its listed value. While contrived by both sellers and realtors, it is not a likely event, it is rare. Often when trying to coax sellers into a bidding frenzy, a realtor will list a home for much lower than is merited. It is a hefty risk and the odds are stacked against you.

Furthermore, when a realtor promises a bidding war but no such war takes place, they will increase the price. According to many realtors, it’s like digging your own grave. In short, list your home for a price you can manage and don’t take the unnecessary risk.

A Big Shot

Each and every city has a bright star – a rock star agent. Their success could be attributed to a longer presence in the industry, high-quality advertising, or a high approval and referral rating. He or she could be/use all of these things, or they could be/use none of them. Broad client bases can be a sign of a good track record, but it could also be what is called an incumbent advantage. Simply put, winners attract more attention. Everyone wants a piece of his or her success. This can, regrettably, foreshadow less attentive service. If a realtor is listing higher volume, this generally means they have less time for you.

The key to success in selling and buying is finding a transparent, dedicated Edmonton realtor to see to your needs with enthusiasm and intelligence.

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