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Unethical behaviors and dirty tricks of Real Estate Agents
Like in many professions and occupations there are honest and
ethical people and there are some who aren't. Since the
commissions of the Real Estate Agent are being paid by the
seller of the house a buyer cannot relay on his objectivity or
impartial conduct, exactly as since without a buyer there is no
deal, the seller can expect the agent to exert pressure to lower
the selling price.
In short, the agents' main interest is to make sure that there
would be a sale, so he would be able to get his commission,
therefore he would do anything in his power to make the buyer
pay more than he wanted and on the other hand (the good hand
:-), push the seller to settle for less than he hoped to be paid
for his property.
In general it make sense to bring both sides to agree on
realistic price that can cut a deal, what we would concentrate
here though, is the unethical dirty tricks and manipulations
some of the Real Estate agents are using in order to achieve it.
Misconduct of Agents to Seller
The sellers are the biggest losers from the real estate agents
tricks.
- Home owners are often duped into paying money to agents before
their homes are sold. If their home does not sell, or it sells
for less than the consumer was led to believe, this money, which
often amounts to thousands of dollars, is lost.
- The main purpose of advertising is NOT to sell homes, but to
raise the profile of agents, this is at the direct expense of
home sellers.
- The payment of kickbacks from newspapers to agents can be as
high as forty percent.This rebate or credit is rarely passed on
to the home seller. It is kept by the agent.
- Home Owners lose millions through having their homes
undersold at auctions. Home sellers are being convinced by a
rational that the price goes up at auctions.
But the reason the price goes up at auction is because it
starts at a very low price. The truth is that auctions get lower
prices more often than they get higher prices.
Among agents, an auction is considered the fastest and best
conditioning method.
- False and misleading offers many agents submit offers
to sellers which are lower than the offer actually made by the
buyers. This is done to make the genuine offer look good when it
is revealed later. It is a common deceit. At other times, home
sellers are given totally fictitious offers in order to convince
them to lower prices.
- Home sellers lose a lot of money when agents use 'bait'
prices to attract buyers. Agents indicate to homebuyers that
homes may sell for a low price when they know very well that the
home sellers would never want such prices. Agents say this is
designed to attract buyers who can then be talked up in price.
This ploy backfires on home sellers because it attracts many
buyers who can only afford the low price. The agents then say to
the sellers that "this is the most the buyers will pay." The
truth is that the wrong buyers have been attracted.
- Open Inspections, Almost anyone can walk through a
family home without identification. This reckless disregard for
the personal safety of home-owners is a serious ethical concern.
Also, the more 'lookers' who can be attracted to an open
inspection the easier it is to persuade the owner to reduce the
price. Agents will say that there has been "lots of activity"
and, if no one has bought, the price must be lowered. But agents
do not say that the people who looked were not qualified buyers.
- Betrayal of Confidence, Many
agents are quick to betray
the confidence of home sellers. If the home seller is ill or
going through a divorce or has financial problems, this highly
sensitive information is often given to buyers. One real estate
trainer openly boasts that he "loves divorces" and encourages
agents to exploit this emotional trauma. The personal details of
home sellers should never be revealed. Home owners are advised
here to keep their personal problems to themselves or in other
words "take the fifth amendment".
How Real Estate Agents Manipulate Buyers
-Untruths, They deliberately telling lies about the
likely selling price of a property causes enormous emotional
stress to homebuyers. Buyers are often given false hope about
the price a home may sell for. They get their hearts set on
homes which they have little or no chance of affording. Buyers
are often used as pawns to persuade owners to reduce prices.
-Apathy, The treatment given to many homebuyers is often
flippant. Many buyers are stunned at the almost complete lack of
interest shown by real estate agents when they make an enquiry.
-Showing Setup Properties|, The agent begins the tour by
showing to the potential buyer few run-down houses, in contrast
to these first impressions even the medium quality homes he
shows him later on looks pretty nice. This trick is based on a
well known psychological principle of "Relative Perceptual
Contrast".
-Reveal Information, By law the seller's real estate
agent has a fiduciary responsibility to the seller, and they
WILL tell the seller everything you say, so pretend you are
under police interrogation. The first thing the agent will do is
asking you how high you are willing to go on the house. Don't
fall for this trick. Just give them the price you want to pay
for the house minus 6% - 7% and if they ask how high you are
willing to go, tell them that's it.
-Needless expenses, When buyers are told that a home is
within their price range, they often spend hundreds of dollars
to obtain legal searches and building inspections. Later, when
they discover that the home was never within their price range,
they become emotionally upset and are often furious at having
wasted money needlessly.
-Auctions, Buyers are often lured to auctions in the same
way that sellers are lured by deliberate misrepresentation of
the price Buyers are told that the price will be low. Sellers
are told that the price will be high. Great pressure is then
applied to both sides at the auction. The sellers are pressured
to reduce their price and buyers are pressured to pay more than
they can afford.
- Buyers are often led to believe they have bought a home, only
to be told later that someone else has paid a higher price for
it.
-Investment Advice, The statements made to buyers about
the investment potential of real estate are often misleading.
Some agents tell blatant untruths about the potential of real
estate. For many agents, it is always the "right time to buy".
About the author:
-----------------------------------------------------------------
--- This Resource Box must be included with youe article copy
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MBA - International Trade & Finance - Heriot-Watt University.
Bsc. Computers and Information Systems - Long Island University
- C.W Post Campus. Hobby: Photography. Married with two
Children.
Owner & Editor of: http://www.buy-perfect-home.com/
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