We are not saying that realtors are trained liars. What we know is that they really exist like in every industry. In response as a property finder, we provide only the most reliable realtors you can find in the state.
Just to give you an idea of how the industry really looks like from the inside, here are six lies that some realtors tell their clients.
1. Your house is more valuable that you think it is.
Many sellers overprice their properties for personal reasons. Unfortunately, many realtors also play dirty with it, so they ride along with their miscalculations just to make sure that they sign up.
When a seller asks about the possible selling price of his real estate, he wants to hear good news which you can read as high price. The happier he gets the better chance the realtor gets to sign him up and eventually earn a commission.
As a seller, you should have an idea of the on-going fair market value of properties in your area. You know when a realtor seems to be playing based on your own estimates. Be objective for you to see clearly the real value of your property.
2. The real estate you want is a guaranteed moneymaker.
Some realtors tell their clients that a house or lot is bound to appreciate in the next five years or so. Some say that a particular property is perfect for leasing. Some even go the extent of advising their clients to establish a business in the address, or take down the current structure to build something more lucrative.
While some of these unsolicited advices sometimes have merits, most of time, these are nothing but personal opinions that appear credible because of their positions. Realtors normally don’t have a background in economics, finance, or engineering. Otherwise, the real estate industry shouldn’t have been a big problem when the recession hit.
Property management is also another field within the same industry but is handled by another set of licensed professionals. While a realtor’s relationship with a buyer ends at the signing, a property manager’s relationship with a leaser and tenant doesn’t end until the contract expires. Nevertheless, some realtors are also licensed property managers.
3. The house is in perfect condition.
A realtor wouldn’t know that for sure unless he has done all testing procedures to clear the house from any anomalies. The problem is that most sellers don’t want to put their house under various testing procedures because they can sell it without any of those anyway.
It’s simpler to inspect for wood problems, but pest control companies have more technical methods than mere visual inspections. A working power line and outlets usually say it all for a realtor, but a technician will inspect not just the connection but the quality of wires as well, something that takes a while and a couple grand more. Even mould and mildew problems usually take a forensic expert to be ascertained.
When a realtor says that the house is in perfect condition, he is probably saying that in good faith because he is confident in what he is selling. However, don’t take the word “perfect” in its literal sense because it rarely is.
4. The real estate is as it is as described.
Descriptions are commonly different from the actual property by a slight margin of error. Why? It’s because copywriters are better with words than property owners are with housekeeping and maintenance. Good marketers will always find good selling points in a bad property, and these include good angles for a photograph or good landmark near the address.
This practice is so common, but we dare to rectify the system and provide properties as what they really are and not what we want them to be. Realtors should also be like that. They should only give the facts, liaise for the negotiation, and assist where both parties need him.
5. There are a lot of properties to choose from.
This is a lie depending on how you understand it. There are more than 12,000 properties in New York City that are currently on the market, but would you believe that the number of real estate agents are more than double of that figure—more than 27,000?
The number of properties says that you have more options than you can handle. However, the number of agents says that not everyone makes a deal, and less than half of those who have closed deals also have priority clients that you have to compete with. Most of the time, the business works in a first come, first serve basis.
It should also be considered that when narrowed down, the properties that fit your requirements will probably be less than what you need to find the dream house you need. In fact, there are realtors who wait for years to give their VIP clients the perfect home.
6. The set commission of a realtor is 6%.
A commission rate of 6% is considered as the industry standard. However, this is not mandated by law like tax, and even realtors who belong to firms usually don’t have contracts with definite commission rate. Commissions are flexible, so the last resort when a buyer wants to haggle with a property so bad is to take a cut from the realtor’s commission. Three to five percent commission is still better than zero