If you were thinking brokers are talkative people – you were wrong. Here are some things that a real estate broker knows, but would never say to you.
Experienced home sellers and buyers already know that real estate brokers aren’t as eager to talk about everything. Sure, they’ll let you know everything there is to know about the house itself. They know the square footage to an inch and they know exactly what needs to be improved. Everything there is to know about the inspection process – they’ll know it. Mortgage securing strategies? Home upgrades? You name it, a real estate broker will talk to you about it.
But there is a plethora of things a real estate broker will never mention a client. Below are some secret thoughts real estate brokers have, that they’ll never let you know about.
They Work for the Agent
Despite what buyers think, most brokers don’t really care about buyers or sellers. They are hired by the real estate agent and they are paid from agent’ commissions. The broker doesn’t represent the buyer’s interests, and they won’t even listen to the seller if the agent didn’t tell them to. If you’re a buyer who wants to be certain the broker works for them, you’ll have to hire a buyer’s broker who will represent your interests.
Open Houses Are Made for Brokers
While you, as a seller, might think open houses are a good way to find serious buyers, they serve agents and brokers more than they serve you. How is that? Most people who’ll show up for an open house are just passers-by, or people who are not ready to buy, but want to look at the neighborhood, to see what the process looks like and the state the market is in. In most cases, they won’t purchase your house. However, real estate broker will take their contacts and keep in touch with them, so these people will buy a house with them in a few months, or even years. In other words, open houses are a great way for a broker to expand his pool of clients.
Inspectors Work with Them
Almost every real estate broker has an inspector that they work with. While this is typically a regular cooperation, sometimes there is a bigger thing happening behind the scene. Some inspectors are paid by brokers to keep quiet about certain issues, so the house can be sold at a higher price. Remember, the higher the sale price, the bigger the commission. While this sounds good for the seller, keep in mind that the buyer can always pay for a private inspection that will discover if anything was hidden.
FSBO and Real Estate Investors Take Away Our Business
Let’s face it. No one loves competition. The same is with real estate brokers, who aren’t that happy about FSBO listings and real estate investors ‘stealing’ their listings. If you try to sell a house by yourself, you might still have to deal with brokers calling you, pretending to be buyers. They do this so they could convince you to work with them. Also, they can make false promises, trying to get you to work with them. They’ll lie about bad testimonies from people working with a Milwaukee direct buyer, or tell you how you can’t possibly sell a house for a good price without their help.
Contracts Have Hidden Catches
Most people don’t read that much into contracts. They assume contract is an agreement for two parties to work together, and nothing more than that. However, this is a huge mistake. Most contracts usually come with a Disclaimer of Promises, which, in buyer’s case, state that the broker isn’t liable in case of failure to comply with any verbal promises. Because of this, you need to get everything in written. Otherwise, you can end with lots of empty promises.
The Warranty Is Useless
Agents and developers might offer you some warranties on new home constructions. However, these warranties are usually next to useless due to their wordings. Don’t fall for that and don’t sign anything without your lawyer. Otherwise, you might lose the right to sue.
You Don’t Really Need Them
Something that many inexperienced buyers and sellers don’t know is that you don’t really need a real estate broker to buy or sell a house. You can find your own buyers and negotiate this with your real estate agent. However, this has to be done before the contract is signed. Also, this won’t save you the commission price, although it might get reduced a bit. But the truth is, you don’t even a real estate agent if you opt for FSBO or a direct buyer in Milwaukee, such as Sparks Property Investors LLC.