True Costs…What Real Estate Agents Fail To Mention
Having been a Real Estate Agent myself and now a Broker, I’ve been exposed to the sneaky little tricks agents use to get a seller to hire them. Sit down for this as this article may take the wind out of your ‘sail’.
I am here to warn you so you don’t fall victim. And a side note, there are a lot of great and ethical real estate agents too.
Here is a list of tricks Agents use to get your Business:
1. Offer to list the property at whatever price you tell them
a. Why is this an issue?
i. Are you hiring an agent to be a yes man/woman or to be a straight shooter on the true value your home will sell for? By listing properties too high, this can easily hurt the desirability of your home, hence no one wants to view it, then it sits on the market for so long people think something is actually wrong with the house! What does the agent care? Not too much because they will just keep asking you to lower and lower the price until you finally sale. Now you actually did not get top dollar, buyers have a better advantage to negotiate, and meanwhile you have been losing more money by paying the mortgage, taxes, interest, insurance, utilities, and maintenance. Make sure you can trust who you are working with. Just because that agent says they can sell for some outrageous price does necessarily mean they are the person to choose.
ii. Do not want to go through this process? Call Us today at 855-449- SELL
2. Do not tell you how much it truly costs to sell your home
a. So you have agreed on a price, you sunk all the money into the home prepping it to sell and now you are waiting for that pay day right? Wrong!
i. Think about it. How much did you spend to get the property listed? Did you need to discount the price because you did not want to put fresh carpet? Now that you have an offer, the buyer wants you to give them an updated electrical panel, New A/C, and fix a bunch of things that you never knew about but the inspection report found. On the day of closing you realize the following fees: 6% Real Estate Fees, 1% title policy, 3% in buyer closing cost assistance, and you still have to pay $475 for a survey, $600 Home Warranty, and more title fees (ie. Attorney doc preparation, $450 Escrow fee, Recording fees). After all is said and done you probably paid close to 15% total just to get your house sold PLUS all the additional work spent getting the house ready to sell AND the repairs required by the buyers lender after the inspection report came back….
ii. Was it really easier to go the Real Estate Agent Route or would it have been easier to get a cash offer 4 months ago and already be 4 months moved into your new place?