| Buying a house is probably
the single most important investment you'll ever make, but there are some
things your broker won't necessarily tell you. Here then, with a nod to
Smart Money's consumer column, are a few tips to keep in mind when you're
shopping for a house. |
1."I'm
not looking out for your best interests."
Most real estate brokers are born to socialize.
So chances are that by the time you finish cruising a few neighborhoods
together, you'll know the broker's life story and the broker will know
yours. It's only natural for you to think that the broker is representing
your interests. That's not usually the case. |
2."That
price is ridiculous."
If your broker represents the seller,
he or she can't say anything that might lead you to offer less than the
asking price. And don't forget, in most cases, the more you pay for your
house, the more the broker makes. |
3."This
is a lousy investment."
The days when you could buy a house and
count on doubling your money in five years are history. So beware of brokers
who tell you the house, condo or land that you are looking at is a great
investment. |
4."The
house next door has four dogs with a barking problem."
The basic rule is the buyer needs to ask.
A seller or a sellers agent can't affirmatively misrepresent anything.
But if a seller or his agent is silent about something they might know
about, they're within the law. You must ask! |
5."You'll
never get your deposit back."
Every year the state board that oversees
real estate agents handles about 400 complaints. Most of them involve alleged
misrepresentation and failures to return deposits when you sign the purchase
and sale agreement. |
6. "My
commission is negotiable."
Whether you're buying or selling, it's
important to know that an agent's commission is not set in stone. The brokers
customary fee is 6%. But like everything else in a real estate deal, the
number is negotiable. |
7."Don't
tell me too much about yourself."
You need to assume that everything you
tell that broker will relay to the seller. If, for example, you have an
urgent need to buy a house by a certain date, telling the broker will undermine
your bargaining position. |
| These are just a few of the many factors
of which you should be aware. We can advise you of others. Who your Broker
is as important as which property you buy, because having the right broker
can help you decide the right property for you! |
