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Things for Buyers to Remember in Dealing with Real Estate Brokers.

Written by: Marshall C Deason Jr.

Reputation Level 16

Real Estate

Posted over 3 years ago. Applies to Florida, 5 helpful votes, 0 comments

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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.

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.

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.

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.

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.

Beware of "Creative Financing"

Be vary wary when a sales agent talks about using "creative financing" to help you buy a house you could not otherwise afford. You do not want to participate in criminal mortgage fraud to buy a house you cannot afford to pay for.

Tell the Truth

Do not sign any document that says anything that is not true, even if your sales agent tells you that "everybody does it" or it is "just a formality." If this happens to you, you should immediately stop doing business with the agent and report him or her to the Florida Real Estate Commission.

Additional Resources

Additional information about your relationship with a real estate broker can be found in the disclosure documents given you by the broker, and in your purchase and sale agreement. If you are unsure of anything in your dealings with the broker, you should consult an attorney about your rights.