Let us provide you with 10 facts that can save any potential property buyer from getting into a bad deal.
1. Exposure to advertisement clouds your judgment.
Repetition is a common practice in PR where a particular developer or realtor becomes a prolific advertiser. As the market’s exposure to an ad campaign increases, people are also force-fed with an impression that a familiar name is a credible name. You won’t be able to decide as objectively as you would want if you are heavily influenced.
Don’t research ads, only pertinent listings. Also avoid to research about an agent’s personal life before personally meeting him so as to avoid bias in judging his character in person.
2. Inquiring online usually doesn’t get a real estate agent to entertain you.
Online inquiries are usually taken as unserious inquiries because agents believe that decided buyers would either inquire via phone or in person. Besides, if an agent would entertain all online inquiries he is getting through his website, he may not be able to do anything else for an entire day.
If you are in a hurry, call the agent or visit his office. Talk to him first before you create conclusions about his character. At the end of the day though, the property is your big concern and not the agent.
3. Every agent his own target market segment.
Talking to a luxury real estate agent when you are looking for a house while on a tight budget is very unlikely to produce a good deal. Likewise, talking to an agent who sells average properties when you are looking for high-end properties is like asking for directions from a kindergarten student.
Getting recommendations and choosing based on popularity don’t work well most of the time. You need to look for an agent whose portfolio includes properties that meet your standards and requirements. Know your budget before contacting an agent lest you’d only embarrass yourself.
4. Properties originally owned by someone famous sometimes sell at prices higher than their actual market value.
We are not saying that this is the case all the time, but it does happen quite often. The history of a property sometimes adds something to its value, like if the original owner was a deceased icon. We’re not sure why, but bragging rights surely have something to do with it.
Seriously though, if you are on a tight budget, you better avoid addresses with historic significance or houses where Hollywood A-listers once lived.
On a similar note, notoriety deducts something from the original market value of a property, like when an infamous convicted murderer used to live there.
5. Acting important gets the favor to shift sides—on the other side.
When a real estate agent feels that you are acting all important—arriving more than an hour late to a meeting, acting like a diva, demanding so many weird things, what have you—the negotiation is very unlikely to get into your favor.
Now, if you are planning to negotiate for a lower price, it won’t help to kick your pride so high. You are on the asking end, so ask a favor like you mean it.
6. A client acting dumb rarely gets good deals.
When an agent feels that a client doesn’t know much about the on-going negotiation, he would be less amenable to offer a better deal. Why? A client who doesn’t know which is a good or bad deal wouldn’t know if he is offered something on the average or bad side.
You can say “gotcha!” at the right moment. Okay, not really. But telling the agent that you are just testing him if he’d be honest will just result to an awkward situation, not really the ideal backdrop if you want to build rapport with an agent.
7. Honesty is crucial when a real estate agent pre-qualifies a client.
When we say “pre-qualify,” it means that an agent screens all the inquirers to determine if he is the right realtor for the job. This is a way for both sides to avoid wasting time and money.
A potential buyer should be honest in answering all the questions because this pre-qualification will determine the right property to offer, other options available, lower and upper ceiling prices to set, and if there should be any transaction to begin with.
8. A legit agent refers another legit agent.
By legit, it means that an agent is licensed and should be a member of a larger network or organization of realtors. Contrary to popular belief, most legit agents are not selfish because referral plays a very important role in building their clientele. If the first agent you inquired with doesn’t have what you need, he might have someone who can help you. This is a part of their ex-deal to supply clients to one another whenever there is an opportunity.
9. Ads only give ideas, not details.
Whenever you are looking at real estate ads, always keep in mind that those ads are only there to inform you about their existence. They are not there to answer all your questions.
Talk to an agent before making a decision basing only on ads.
10. A city’s/town’s economy is a clear predictor of trends.
We put this on number 10 because we thought that it’s quite obvious. Nevertheless, it’s still worth emphasizing that when looking for a property, you shouldn’t only base your decision on the property itself but on the state/city/town/county’s economy as well.