Estate Agent Tricks to Watch Out For When Home HuntingJune 27, 2014
When home hunting, many people assume that estate agents are only there to help and get you the best property for your cash and expectations. However, there are a few tricks, occasionally used that are designed to influence your decision to better the life of the estate agent. Let’s take a look at what they are so you can watch out for them:
The Block From Buying
Nobody expects this trick from estate agents, which is why hardly anybody notices when it’s being used. Most of us assume that agents want to sell properties to us, so it never occurs to us that they may actually want to stop us from buying!
An agent might do this because they’ve planned something with the property for themselves or one of their contacts, so they don’t want to disrupt their plans. They may also have found somebody who needs them to sort everything out for them including the mortgage. In this case, they’ll get a higher commission than helping somebody who doesn’t need help with the mortgage, so they’ll try and stop you from buying.
Of course, you’re looking for your ideal home when house hunting, but if an agent doesn’t have a property you’re looking for, they’re going to try to shift their stock and sell you something unsuitable. A successful agent will try to influence you to compromise and take what they have available, rather than hold out for your dream property. They may use fear to push you into making an offer, perhaps by claiming there are several other people interested.
Pumping Up the Price
Many people end up spending an extra 20% on a property they like, so agents know that they can squeeze extra cash out of a buyer by showing them a great property. They can do this in many ways; by starting with the cheapest and moving up to the most expensive, or taking you to a ridiculously expensive place first so that all other properties seem reasonable in comparison. Don’t feel pressured to stretch your budget too much.
Sellers, property developers, and agents all have a web of people that can help them to increase their earnings. They try to keep relationships with other businesses in the area so they can get an even bigger chunk of money. You might find this an expensive experience if you aren’t careful, so make sure you keep an eye on things and whether jobs are being carried out properly.
Sealed Bid Scams
If there are several buyers after one property, the seller and agent may ask buyers to submit their highest bid in an envelope by a certain time. This can use buyers competitive nature to get the price up, as well as allow agents to lie about a phantom bid to somebody with access to a lot of cash to get more money.
Of course, the points outlined in this post are only used by dishonest agents, and not trustworthy agents like this estate agent in Northallerton. Be on your guard, and you should get your dream house for a good price!