10 Things Your Real Estate Broker Will Not Tell You

[mrcheap]

Courtesy of Yahoo! Finance:

http://finance.yahoo.com/education/r..._Wont_Tell_You

[kcowan]

Thanks mrCheap. That is a great article.

[atrp2biz]

I don't agree with #3 at all.

"Think you've had offers? Actually, there've been several.".

I would think an agent would present any offer since the chance to get any commission at all would outweigh the incremental benefit of waiting for a higher price/commission.

[andrewf]

I can imagine agents trying to get both ends of the commission and so favouring offers from their own clients.

[mrcheap]

atrp2biz: That's what I would have originally thought as well, but I've actually had the experience of an agent who I thought was lying about submitting offers and another agent who flat out refused to submit offers at the price I wanted (she was particularly delightful as, after she knew what I wanted to offer, she got me to sign an exclusive buyers agreement with her BEFORE she told me she wouldn't submit them).

As it says in the article, this might be to try and increase the sale price (I have trouble believing this) or to try and collect a double commission (this I'd easily believe - as andrewf says). Another possibility is they worry about the effect on their relationship with other agents or their clients if they submit low-ball offers. Another possibility is just that they don't want to spend the time submitting offers they don't think have any chance of being accepted.

[Brenner]

This article reminds me of a realtor commercial I've seen on TV lately, one of those "How Realtors Help" commercials from the association. Basically implies that realtors do your home inspection, legal work, background checks on neighbours etc. not sure how they get away with implying such things.

[Berubeland]

I like the commercial where they even stack your furniture.

In any case a very good article and I too have had agents refuse to put in offers. One investor wanted to put in an offer of $900,000 on a property priced at $1.8 million. That agent refused the investor walked away and the building sold for 1.1 million a month later. Asshat.

I know quite a few agents and most of them are decent folk if you never ever ever forget that their job is to sell you whatever you will buy.

[kcowan]

We had a realtor in London who was refusing to submit a stink bid on a house on Cowan Avenue. It was 23% under list price. I said: "Evelyn, I am sure I can find an agent who will submit any offer I am willing to make." I had not signed a buyer agent agreement. I never would.

Anyway, she caved and we got the place including some furniture for 22% under list.

(It was a marriage breakup and the settlement date was coming up in 4 weeks.)

[fraser]

We did exactly the same in Vancouver when interest rates were 18 points. House was empty a divorce and re-marry. We had to offer less than the agent recommended because we had no money.

Our real estate agent was great. She just said OK, go in with the largest cash deposit that you can, go for quick possession, don't ask for the appliances (buy the for next to nothing once the deal is done) and make the offer good on presentation, ie the seller had to decide then and there. The selling agent told us at 9pm that he would present the offer in the AM but the people would refuse it. Next morning, we went out to look at a few more homes but got a call.....the seller accepted the offer.

We were fortunate...we had an agent who knew how to package our low ball offer in order to improve our chances. And yes, we got the appliances, such as they were, for next to nothing.

We just sold our house in Calgary. We needed to downsize (3400sq feet) and we want to travel for six months or more. We had an excellent agent. In fact, her recommendation is to hold off buying as she sees the market softening again in Calgary.

[chaudi]

I think you have to just fax them the offer. They maybe scared that it is legal record. I think this is good way to buy a house if there are a few you are interested in, just have a standard offer written up on you computer (with lots of conditions) and replace the address with low ball offers. fax away.

What don't they tell you? That they agents get paid a higher commission -- if you pay more! holy ^&%$!