How To See Through Real Estate Broker Tricks

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Some real estate brokers have a lot of tricks up their sleeves. Learn to beat them at their own game.

To complete this How-To you will need:

A knowledge of typical broker cons
A healthy dose of skepticism

Step 1: Do your own research

Before you hire a broker, do your own research about what comparable houses have sold for in your area. That way, you'll know if your broker is giving you good advice or just trying to make a quick sale.

Step 2: Don't be pushed into accepting a lower price

Don't be pushed into accepting a lower price than you feel your home is worth. Just remember that brokers keep their own homes on the market significantly longer than the average, yielding a higher sale price.

Tip: Keep in mind that holding out for an offer of $10,000 more gives the broker a measly $150 in commission -- hardly worth her time to work for the extra $9,400 you'll yield.

Step 3: Don't be bullied into an open house

Don't be bullied into holding an open house. Only two percent of houses are sold this way, so the real winner is the broker, who makes all kinds of contacts.

Tip: Negotiate a lower commission. With so many people selling their own homes on the Internet and using discount brokers, most real estate agents are willing to accept a lower fee than the once-standard six percent.

Step 4: Make them run all offers past you

Stipulate in your contract that your broker has to run all offers past you. An unethical broker might not tell you about an offer from a buyer represented by another agency—so that she doesn't have to split a commission.

Step 5: Don't use the broker's inspector

For obvious reasons, it's wiser to hire your own inspector than one who may be in cahoots with a broker to rubber stamp a property.

Step 6: Be leery of their renovation suggestions

Don't assume that because a broker is waxing poetic about the lucrative renovations you can make she knows what she's talking about. Check with zoning laws before assuming you can make substantial changes to the house or property.

Step 7: Consider selling your home yourself

Consider selling your home yourself. There are plenty of books and websites that will walk you through the process, saving you thousands of dollars.

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Category:

Howto & Style

Tags:

• broker
• estate
• home
• house
• how-to
• howcast
• market
• real
• tricks

[tedabalos5]

I want to share a great book that just came out is called "REO BOOM" that teaches step by step procedures of what a real estate agent should do. This book is by farthest the best one out there. I been trying to get into REO's and I was able to follow the "REO FARM" method and i got my first listing withing 2 months :)

[cannasnagler]

open house = standard in the nordic countries. What is the problem ?

6% commission(USA), try 3% with 60/h week 80k(average - swedish prime market, 35years old, 6 years in).

[jvolstad]

Realtor cons? Say it isn't so.

[westcst2k7]

a broker and an agent are two different things video is not accurate.

[kieranjacksonrealtor]

This video is not accurate!

[kieranjacksonrealtor]

This video is not accurate!

[jonmanilenio]

thanks for the warnings. i'm a licensed real estate broker so I'll make sure never to do those things :)

[rameh1983]

Hmm. I've sold quite a few homes at open houses... Think about it, the buyers coming in are LOOKING for a house thats like yours. Would you waste time going to look at a house that you would never buy? (unless its just a crazy nice, unique house that everyone would want to see) I also couldn't imagine any real estate agent not showing you offers from another party. That would be so bad. Maybe I'm naive but this video gives Realtors a bad name. Though some might deserve it I guess.

[taichibailongball]

Whoever made this video doesn't understand how much agents and brokers put into helping their clients.

Whoever made this video is responsible for putting fear and mistrust in people, causing conflict between brokers and clients even before they meet. Very stupid.

[winstomp]

This video was clearly made in favor of discount brokerages, because all of this information is false and also the fact that mortgage fraud and money laundering are mostly tied back to online discount brokerages. This is because of the fact that they do not have a face to face screening process in which the meet the actual person so in fact there more after your money more so than Realtors and they care less about your interests.I would rather have a Realtor on my side than a website.