Property360Digest e-magazine Issue # 7 - 2020
TALKING POINTS
IS YOUR REAL ESTATE AGENT CHEATING YOU ?
By Gunaprasath Bupalan
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You are finally ready to buy a house or maybe sell your current property . What do you do next ? Call a real estate agent , correct ? – WRONG !!!
Uncle Sam may say that he knows a very good agent , but Aunty Carol says that the agent she used to sell her house is the best in the world .
Ohhhhh … the head ache is real !!! What do you do ? Who do you engage ? First things first – BEWARE
Ask yourself these 3 questions
How Did The Agent Find You ?
Sometimes , agents find buyers and sellers in unorthodox and unethical ways . While using deceptive finding methods is not in itself cheating that directly harms you , it could be an indication that you are actually dealing with a cheater .
If an agent is dishonest with you at the beginning , there is a good chance that they may be dishonest with you again … and again … and again .
For example , sometimes agents make ambiguous postings online or on listing websites ( I will refrain from naming any site for political reasons ) roll eyes .
Does your agent also represent the seller of the home ?
They use these means to invite interested individuals to call for more info . Once you call , the agent on the other end of the phone will say the property is no longer available , even though it was listed the very same day .
Here ’ s a scenario . An agent has a lead on a great property and he convinces the seller to let him list it . Then , the agent will call all of his long-term clients who are looking to buy , including you , and will do his best to block out other potential buyers who are not in his list . Once the agent represents both the buyer and the seller , he can tailor each party ’ s contract to maximize his commission and collect from both the buyer and the seller . Yes ? NO !!! The collection of commission can ONLY be from one side ; either the buyer or the seller . It is against the law to collect from both parties . This is to protect the interest of the party the agent is representing .
It ’ s also good for you to know that according to law , the prescribed agency commission rate is 3 %. The allowable fees as prescribed in the 7th schedule of the 1986 Rules on Land & Buildings must not exceed 3 % of the selling price , and the agent must be a licensed REN ( Real Estate Negotiator ) if he is dealing with any monetary transactions .