Real Estate agents are crucial to buying and selling a house, but unfortunately, not all agents are loyal to their home buyers or sellers. Most agents are fraudulent and rip you off with property tricks. So the question is, how Real Estate agents are ripping off home buyers?
If you know the value of real estate property in advance, you can understand the fake or True real estate agents. But most home buyers don’t research good real estate agents properly and sign contracts with them at their first call. This way, most home buyers lose massive money due to hiring a bad agent who just ripped them off. To hire a trustworthy agent, you should interview at least 2 to 3 agents to check out their skills, fees, process to buy a house, and history. To increase their revenue, some real estate brokers use a number of tactics. The following are the main signs that your real estate agent is trying to cheat you.
Tricks Real Estate Agents Play with Home Buyers
Some Real Agents use clever tricks with home buyers in order to buy extra money from them. These tricks are given below:
1- Pushing for a higher Sale Price
Real estate agents can easily trap you if you don’t know much about buying a house. Home prices vary from house to house, and the agents can show you how much they are taking a commission from the previous one. They can demand higher commissions that are not fulfilled under that house. A real estate agent’s commission is determined by the price at which a property is sold. Even though it’s not in the buyer’s best interest, some agents may insist on a higher sale price. Due to this, the buyer can end up paying more than the property is worth. Buyers should investigate nearby comparable sales and be ready to bargain with the seller’s Agent.
2- Charge extra fees for Unnecessary Items
Most real estate agents ripping off home buyers by demanding a fee for pointless services. They even added additional commission fees that were not disclosed at the contract time. You should check the list of each item before and after the contract sign to understand why they are demanding extra fees. It would be best to keep a deeper eye on every act the agents are doing and directly contact the seller.
3- Directing buyers to specific properties
Real estate agents may steer buyers to specific properties based on their interests rather than the buyers. For instance, an agent can push a buyer towards a property that’s their own or family property. So, always do your own research and don’t rely solely on an agent’s recommendation. From such tricks, they can cheat on anyone.
4- Expending the documentation process
If you make a decision to buy a house, then you should first complete the paperwork by your side. When signing the paper, most agents speed up the paper process without giving you enough time to read the document. Most agents with secret agendas point out some boxes and ask you to sign them out. If you checked out this type of change in an agent, then you shouldn’t believe in such agents. You shouldn’t even sign a contract with them. Plus, you should sign the documentation after reading the entire contract.
5- Ignoring certain Agreement provisions
Most of the real estate agents hide some papers while showing you the contract details. When you read the whole paper and agree to sign a contract, they cleverly add extra papers that only benefit them. So, be aware of such scammers and check out the contract at the time when you’re signed.
6- Sign on the blank document
At the time when you’re signing real estate property papers, some agents might ask you to sign on blank documents. However, signing on blank papers is risky, so avoid making such attempts. They can utilize these blank sign papers to transfer all your property or bank accounts to their name. Additionally, they can use these papers for their own purposes and threaten you with them. Thus, before signing any paper, ensure you have read, examined, and understood every line.
7- Do not Agree to show your Agent’s MLS Sheets
Did you know that there are other versions of agents’ MLS sheets? That’s different from the sheet you have. The agent version sheet will include important information, including the Agent’s profits when you buy the home. However, if the Agent refuses to show you the sheets, it suggests that the Agent is keeping something from you, which is an alarming sign for you. The information on the papers can cause harm or greatly benefit the real estate agent.
8- Demanding more fees than the final fees
When you first inspect house, then you might discuss the price with an agent. If you want to buy that property you finalized the total house payment with the Agent. Most of the agents who want to get more profit change the actual price of the house at the last moment when you’re signing the contract. As you already have plans to buy that property, you may end up paying extra with an agent. But shouldn’t do so; you should end up contracting with that Agent.
Real estate agents can greatly benefit when purchasing a property, but it’s important to be aware of any potential dangers. Real Estate agents rip off home buyers easily. You can guard yourself against being taken advantage of by a real estate agent by conducting your own due diligence, asking plenty of questions, and having your own counsel. Always put your personal interests and requirements first when making decisions because the sale price determines the Agent’s commission.