Real Estate Agents – Do You Trust Them
Do you trust your real estate agent? Business is business and all discussions and deals should be documented and thought carefully through. We came across a situation that we wanted to share and get your opinion on. What do you expect when you sign a contract with an agent to either sell you your home or to help you buy a home? Do you really expect them to work hard for you? Help you achieve your goals with regard to selling or buying a home. But can you really depend on them to work hard for you and sell your home?
We all have heard of agents who focus on signing up listings and then you never hear from them again. All they are doing is listing your home. Then they let other agents actually sell your home. They still get half of the commission even though all they did was list your home. They also help you with the paperwork at the end. Pretty good income if you can sign up enough customers. Eventually, your reputation gets around. Before you know it both customers and other agents are shunning them and your house that you signed up with them to sell.
An Example of Real Estate Agents You May Not Want to Trust
A friend is selling their condo and has had it listed for a number of months with few showings and little interest. It is a tough market and everyone is looking for a really good deal as well as as many upgrades in place as possible. The agent is suggesting they spend $20k on upgrades and lower the price to make it sell. The owner is reluctant to give up this much money since they really do need it to help them with their retirement. This is part of their retirement package and savings and to lose $30 to $40 k is a lot of money that cannot easily be replaced.
The agent has indicated to our friends that if the unit does not sell they will buy it from our friends at a reduced price! Sounds like a good deal but who wins in this situation? Who makes the most money? The market in their area is expected to really boom as the economy improves and the value of the real estate is expected to increase by 20% or more.
Real Estate Agents Always Win
We think the agent wins in every situation and our friends lose! Our friends upgrade their unit, spend money to do this and then lower the price. Maybe it will sell and maybe it will not, but either way, the agent either gets the commission or picks up a cheap upgraded condo! What do you think? Should they take this offer?
We really do not think so and in fact, we would suggest that they find a new agent since they cannot really trust this agent at all to look after their best interests to get the maximum deal for the condo they are trying to sell. The only one who wins in this situation is the agent who gets paid either way!
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