When purchasing or selling a home or an apartment, most people prefer to use a real estate agent because it is easier that way. However, before you commit to anything with any agent, it is vital to understand how these professionals work. Unless you ask, many real estate agents will withhold certain information from you. These things include:
The agreements are for six months
A standard contract with a real estate agent lasts for six months. In the contract, you agree to pay the agent a commission if you buy a home during the six months period. This arrangement is great but what the agent does not tell you is that you pay the commission whether or not he or she is the one who introduced you to the home you buy. Even if you walked to a new home and bought it yourself during those six months, you would still be under obligation to pay the commission to the real estate agent.
You can negotiate the commissions
Do not fall for the trick by some agents that their commission is fixed. It is true that some agents offer a flat rate on their commission while others charge a certain percentage of the sale price. Nevertheless, the commissions are largely negotiable. Some agents will charge the commission based on the services they offer such as the means of marketing your home. Do not agree to a free evaluation of your home in exchange for signing a contract with the agent. Many agents will do this without any charge.
Real estate business is not always a good investment
When hiring an agent to buy homes or apartments as an investment, he or she may never tell you whether it is a good business decision or not. If you are purchasing real estate for investment, the income you make from the property ought to cater for all the costs including taxes, mortgage payments, insurance, maintenance and utilities. Do not make any assumptions if the sum does not add up.
Open houses are beneficial to agents
In many instance, agents are the only ones who gain from open houses. For instance, they meet so many potential buyers who may even not have an interest in your property but may end up being clients of the agents. Furthermore, there is risk of people stealing valuables from your house especially if they come in pairs.