We have a lot of experience as mortgage brokers in Rockingham. That means we have talked to a lot of home buyers. We would like to say that the conversations are always positive but we have also heard from people who lost money because they didn’t understand one fundamental truth. That truth: the real estate agent’s job is to get the best deal he can for the seller, who is his client.
In addition, the higher a house goes for, the more money the real estate agent makes for the same amount of work. Here are five statements that may indicate the real estate agent isn’t being entirely forthcoming with you.
“The sellers are sad to be selling this house and could change their mind anyday.”
This statement is supposed to make you think the seller isn’t motivated, when research shows that 6 out of 10 sellers in Australia are extremely motivated.
“Bidding starts at (a number that is too high).”
This is another way to raise the price. The agent is trying to make you think that the home is in high demand. If your bid is too low, you will usually have an opportunity to offer more. But if it is too high, you can never take it back.
“I need to know your maximum price.”
Don’t ever tell a real estate agent what you are willing to pay. The eventual price will be at least that much. If you are going to give a number, be sure to “sandbag” and make it lower than what you would really pay.
“The buyer will turn that bid down: don’t bother.”
By law, the agent is required to submit your bid to the seller, no matter how ludicrous he may think it is.
“There is no counter offer.”
Oh, yes there is.
Looking for a Mortgage?
Call Smartline Rockingham. We will find the right loan for your situation. (08) 9527 1800.