Most buyers use real estate brokers or agents to help them buy a house. Real estate brokers can be very helpful to buyers, leading buyers through the real estate marketplace with which buyers are inexperienced. However there are several things buyers should know in dealing with brokers.
1
Commissions
Real estate brokers and agents get paid a commission based on the amount that a buyer pays for a house. It is in the best financial interest of the broker to get the buyer to buy the most expensive house possible and to pay the highest possible price for that house.
2
Office Listings
Real estate brokers and agents get a larger commission for houses that are listed by their office than they do for houses that are listed by another brokerage. It is in the financial interest of the broker or agent to steer you to one of their listings rather than one listed by another broker.
3
Disclosure of Information
Seller's brokers and transaction brokers have interests in the deal that are different from those of a buyer. Buyers should not discuss bidding strategy or the amount of money they are willing to pay for a particular house with these types of brokers.
4
Affiliated Businesses
Real estate brokers frequently have affiliated business relationships with mortgage brokers, insurance agents or title companies. The have a financial incentive to steer buyers to these businesses. Buyers should comparison shop for these services rather than blindly accepting the brokers recommendation.
5
Real Estate Jargon
Do not be intimated by real estate jargon. If your sales agent uses a term with which you are not familiar, ask the agent what the term means.
Comments - add comment