Having a real estate agent is a key piece in the process of moving home, but that doesn’t mean that you have full disclosure with them. There will usually be many things they don’t reveal about the process. Here are 18 things your real estate agent is not likely to disclose to you.
Commission Rates are Negotiable
Most real estate agents will have a commission rate, and often, it can seem like that’s set in stone. But if you don’t speak up to haggle, they’re likely not going to tell you that the rate is negotiable in order to get as much as possible.
Open Houses are More for Their Benefit
While it might seem that open houses are one of the best ways to garner interest in a property, agents actually use them to find new clients. Those serious about buying a property are more likely to visit private showings than an open house.
Not Every Home Improvement Adds Value
Your agent might also suggest certain home improvements to encourage the sale of your home, but they won’t necessarily all add value. Ideal Home mentions that converting garage space can be one of the best ways to increase value. Consulting with an independent appraiser or doing thorough research is key instead of simply taking your agent’s advice.
Potential for Dual Agency Conflicts
One thing you should always ask your agent is if they’re representing both the buyer and the seller. It’s rare for an agent to take on both, but it can sometimes happen, which can lead to conflicts of interest and make for a messier process!
They Might Have Personal Relationships with Vendors
If an estate agent has a personal relationship with certain lenders or inspectors, they’re more likely to recommend them to you on that basis alone, and not necessarily whether they’re right for the job. It’s important to shop around and do your own research.
Market Conditions Can Change Very Quickly
Some real estate agents might keep to themselves how changeable the market can actually be. Using your own initiative to stay up to date with current market trends can be helpful, as your agent might not always reveal what’s really going on with properties right now!
You’re Likely Not Their Only Client
It can be great to think that your property is your agent’s main priority, but they likely have several other clients. This can negatively impact the amount of detailed attention they can give to each client. If you’re unsure before choosing an agent, ask them how much time they can dedicate to you.
The Hidden Costs of Selling
There are many hidden costs to selling a home that your agent might not tell you. Martha Stewart outlines that you’re likely going to spend 5-10% of the final sale price on total fees. Ask for a detailed breakdown of all potential costs straight away in case your agent doesn’t disclose them all.
Listing Price Strategies
Real estate agents will often price properties lower than market value with the intention of starting a bidding war. While sometimes effective, it can be a risk. If you think your agent is suggesting a price that’s far too low, ask them why they came up with that figure.
They Benefit from Quick Sales
Agents will be invested in making a quick sale because it benefits their commission, so this could affect their advice on whether you should take the first offer. If you feel like it’s too soon, don’t feel pressured by an agent to accept a quick sale.
How Important Home Staging Is
Proper staging will make a difference in how successfully your home sells, but your agent might not prioritize telling you this. 81% of buyers find it easier to picture their future in a staged home, according to Investopedia. If your agent doesn’t provide staging, you might want to hire your own staging expert.
They Have Quotas
Many real estate agents work for agencies that operate under a sales quota, meaning that being able to meet this quota will affect the agent’s advice. This can include pushing for certain sales to meet quotas on time or within a certain month.
Online Listings are Just the Start
Listing your home online is very important in today’s world, but listing online alone is often not enough to sell it. Effective marketing means using many different strategies on many different platforms, which your agent needs to discuss with you.
Some Agents Might Not Have Local Knowledge
Many agents can be very experienced, but that doesn’t necessarily mean they have the best local knowledge. This is why it’s important to shop around for an agent who has local expertise and ask them questions to gauge how much they know about your neighborhood.
How Important Negotiation Skills Are
Having a strong understanding of negotiation can make a difference to your final sale price. However, if your agent doesn’t have a lot of experience with successful negotiation, they likely won’t say. Being chain-free and not appearing too keen can be key strategies for successful negotiation, says Real Homes.
Your Home’s True Value
It’s more likely that you’ll choose the agent that gives you the highest valuation for your property because you naturally think your home is worth it. But some agents can give you a higher estimate simply to win against other agents. This overpricing can lead to problems down the line.
They Can Be Too Optimistic
You want your agent to be excited about your property, but there’s also the risk of them being overly optimistic. This means they might paint a far-too-positive picture of the market that isn’t necessarily realistic to bag your business.
Agents Have Personal Preferences
And lastly, estate agents are human just like the rest of us – which means they sometimes struggle to separate the personal from the professional, too. They might have personal tastes or opinions that affect the advice they give you, such as their preferred property types.
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