ABC News put up an article titled What Your Broker Wont Tell You and the message they say is ” There may be plenty your agent is not telling you.”
They then have a real estate guru go over some points, and my observations in () are included below:
What the Broker Might Not Tell the Buyer
“I think the house is overpriced.”
(If the buyers ask the right questions, they’ll know about every listed house in their price range… Ask for a CMA for the house you’re looking at.. I always did that for my customers. if they feel they’re not, IE: doing your homework on any number of real estate websites that offer property searches, call your agent on the carpet or get a new one.)
“The house has been on the market for six months.”
(That’s standard info in any listing, DOM.. Days On Market. Ask about it – it’s no secret.
The one trick question you might ask is how many times has the house been on the market. Ask for a listing history. Sometimes listings are pulled off the market, then put back on as new to keep the DOM number low.)
“I’m going to show you a crappy house first to lower your expectations.”
(I can’t vouch for that one.. though as a customer, I guess I was a victim of something similar once. Or they may be showing you your price range, prepping you for the bigger, better, pricier house later on in the day.)
“We enhanced the online photographs.”
(I’ve seen both filtered pics, and pics that the agent does not know what they’re doing.. it will be obvious once you see the real house.)
“That scent is the three dogs that aren’t home.”
(An agent cannot say anything detrimental about a listing..it makes them liable to the seller for a listing that may not sell. They can show you a house, and if the agent is good, they’ve discussed with you what to look for when you’re reviewing a home, they just can’t poo poo a listing.)
“There’s a child molester in this neighborhood.” You’ll have to talk to the local police department about that one. (Check the many websites available for this information. Again, this is negative info that might be deemed a liability / deterrent by the showing agent that can be cause for the home seller to focus on.)
Questions the Buyer Should Ask the Broker [Photo] “Are there any zoning variances pending?”
(That’s a good question.. it will let you know what’s coming down the pipe and you can ask the broker, or check with a title company.)
Decoding Broker Lingo When You’re a Buyer
“New to the market” usually means overpriced.
(New to the market means, well, new to the market.. a neighborhood CMA can tell you where the price sits in amongst like houses within a few miles but more often than not, sellers have big eyes in the first few weeks and the listing agent has to do what they are instructed to do.. then again, an agent who pushes the upper limit of a price range might have other reasons. )
“The price is negotiable” means make a low offer.
“A great family location” usually means it’s noisy.
(A great family location might also mean churches or a good school system. They can’t legally tell you things that may drive you away from a )
“up and coming neighborhood” means it’s a risky location.
(An up and coming neighborhood could just mean a new subdivision.) (I think all of these statements are dependent on the agent.. cute and cozy means TINY to most!)
What the Broker Might Not Tell the Seller [Photo] “My commission is negotiable.”
(THAT IS SO TRUE. If an agent gives you some load about how their broker has fixed commission rates, go look somewhere else, or say you’d rather be with them, but you aren’t paying that 6% commission, and see if “the broker” changes his / her mind.)
“Your open house is really a meet and greet for me.”
(Mostly True.. it’s like a customer trolling process. A listing is a great marketing tool for exposure for both your home and the agent. Then again, he may find your buyer at another open house. Keep in mind though though that agents trap most visitors info for future harassment’s, I mean marketing.)
“We won’t share your listing for the first 24 hours.”
(??. Maybe to see if they have any in-house shoppers in their own office first.)
“There’s no traffic on our Web site.”
(Ask about their site.. how they market it, what SEO practices they employ. If they go huh?, like you just did, then their website was a template pasted on a domain address and then left there. My old site got to the #1 search result spot on yahoo and msn because I worked my butt off marketing it online (SEO) to other sites, keeping it updated, adding features, linking to related sites, etc.)
“My sign on your front lawn is sure to get me prospects for everyone else’s house.”
(That’s true since most looky loos are more curious than anything.. make sure your agent keeps the flyers stocked (there are services for them to use to do that). Then again, someone else’s lawn sign might get your home sold.
“Buyers will open your closets and your bedside drawer.”
(Hide or secure all personal belongings and medications. The system says buyers agents should accompany their customers, but never trust a system to work as advertised.)
“The home inspector is my brother.”
(An agent should have several references available for you to pick from for home inspectors and lenders.. it’s almost the law they provide more than one option to eliminate favoritism. Better yet, ask your friends and neighbors. Best reference in the world.)
“Your house stinks!”
(Or the agent can give you constructive advice on how to best make the home more appealing as people tour it.)
Questions the Seller Should Ask the Broker
“Does ‘all cash’ mean ‘no financing?’”
(The seller chooses what options they want available for a listing.)
“What’s your commission on this offer?”
(I have a real issue with this question. You should have discussed this and it is part of your listing contract. And all commissions are negotiable… especially if you interview 2 or more agents for a listing.)
“What changes can I make to help sell this home?”
(Great question, and a good agent should have beat you to the punch and told you this because they are the professionals with the experience from previous contractual experiences.)
Well, that’s my observation for the day.. a little long winded, but I hope this helps.
