Real Estate Negotiating Mistakes
1.
Allowing the seller to access your financial
information.
When you discuss
your housing needs with a Seller's Agent, that agent is legally obligated
to divulge any financial information he knows about you to the Seller.
This can adversely affect your negotiating strength when making an Offer
to Purchase real estate.
2.
Allowing the seller access to your personal
information.
Here again, anything
you tell the Seller's Agent regarding your personal motivation to purchase
a property such as the reasons you like the house or its location, the
time frame you have to make a housing decision or any other data can
affect your negotiating position because the Agent must tell his Seller
whatever he has learned about you. It's the law.
3.
Beginning Your search for a new home without
understanding a real estate
agency.
Some buyers don't
understand the roles and duties of real estate agents, especially who
represents whom. There are basically three different types of real estate
agencies:
-
Traditional Real Estate Agents list properties for sale and are obligated to
try to obtain the highest price and the best terms for the seller.
-
Dual Agents represent both Seller and Buyer. Because his loyalties are indefinite,
he cannot successfully represent either party.
-
Exclusive Buyer Agents are dedicated to representing the best interests of the homebuyer.
Exclusive Buyer Agents are contracted to protect the homebuyer and will
negotiate the lowest price and best terms for the buyer. It's the law.
4.
House hunting before knowing your rights as a
homebuyer.
Most of us would
not think of purchasing an automobile without doing some research, but
when it comes to what is probably the largest financial purchase of
a lifetime, we often go ahead without much thought. Consumers of real
estate services now have options available to them and, consequently,
they have choices to make. We want you to be an informed consumer.
5.
Making an Offer to Purchase Property without the
facts.
Unless you know
the background of a property and the prices for which comparable homes
have sold in the area, you may not have all the facts you need. The
Seller's Agent cannot assist you with determining the price of your
offer, but your Exclusive Buyer Agent will do some thorough research
and prepare a comparative market analysis that will result in a fair
market offer. Simply using the Listing Price and trying to discount
it does not assure you of the best purchase price.
6.
Not knowing how much house you can afford.
We strongly suggest
"prequalification" by a well-respected mortgage lender. In
this way, you will know precisely how much house you can afford and
the amount of the monthly mortgage payment that is comfortable for you.
If you need a list of lenders, we can help you.
7.
Buying a home without a home inspection.
It is just too
risky - we can furnish a list of qualified home inspectors. Our agents
regularly attend the home inspection with the buyer and will use any
major negative results to renegotiate the price and terms.
8.
Accepting verbal commitments from the seller or
his agent.
If you are not
aware that the seller is taking the refrigerator, the chandelier, or
the window treatments until you have passed papers, what do you do then?
We always make certain that the buyer knows exactly what he is buying
and that all details are included in the purchase and sale agreement.
9.
Reviewing (and signing) the Purchase and Sale
Agreement without professional
advice.
NEVER - NEVER sign
any agreement without fully understanding it, or having it reviewed
by an attorney. We always include changes for the buyer's protection
in all standard purchase and sale agreements, and we can recommend a
number of attorneys who will review the document for the buyer at a
very reasonable cost.
10.
Paying two Real Estate Agents to negotiate
against you.
If you call the
real estate company advertising a home that interests you, that agent
will negotiate against you. If you are shown property by any other traditional
real estate company, they will also be representing the seller - even
if the home listing is not theirs. These two agents (one who lists the
property and one who sells you the property) are working on behalf of
the seller, not the buyer. Only an Exclusive
Buyer Agent can work FOR YOU - and it won't cost you more.
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