6 Lies Real Estate Agents Tell Homebuyers
Homes are expensive. In some parts of the country, homes are ridiculously expensive. However with mortgage rates at an all time low, this may be a good time for you to purchase a house of your own. If that’s the case you’re going to want to find a good real estate agent.
Of course not all realtors are made equal. I'm not saying some of them are trying to cheat you per se, but they just might not be doing their best to find you your dream home because they're just trying to make a quick sale and a big commission.
But never fear! With our help you’ll be more than ready to recognize when a realtor is trying to pull the wool over your eyes.
Here are six common lies to watch out for when dealing with a real estate agent:
1. “The price is non-negotiable.”
The seller and their agent may say this in order to advertise their price as a rock bottom deal, but we know better. When it comes to buying a house everything’s negotiable. If your agent doesn’t want to negotiate or refuses to try just because the seller says this, then there’s a big problem.
2. “This is a once in a lifetime opportunity!”
Translation: “Hurry up and pay me!” Sometimes agents will use this tactic to spur you into making a decision on a house you aren’t quite settled on. While it’s true that people sometimes do need a push to make a decision, purchasing a house isn’t the kind of decision you should allow yourself to rush into.
A good agent will find “once in a lifetime” opportunities on a weekly basis if they’re doing their job right. Don’t worry about missing one.
3. “This is the best home in the area.”
This one is pretty sneaky and definitely unethical. Basically some agents might use the method of showing buyers a run of unattractive and overpriced homes before taking them to a fair-priced, comparatively nice one. After the string of disappointments the last one looks perfect.
4. “There are other offers on the table.”
This is a common thing to hear from listing agents, but what they’re really trying to do is pressure you into acting fast by creating the illusion of a hot, in demand property. Just like point number 2, don’t let yourself be pressured.
Instead, real estate agent “James” on The Intelligent Investor recommends asking if any offers are actually signed around or mutually accepted. It’s easy to say there are offers but much harder to lie about that because doing so would simply drive you, the buyer, to move on.
5. “Rates are going up, so you better get in now!”
More pressure to buy without thinking. Once again, don’t let that faze you. While it is true Canada is enjoying very low interest rates right now and chances are they will go up at some point in time, it’s not the real estate agent’s place to push you into buying a house.
Their job is to help you find the perfect house. Of course it's ideal to lock in a mortgage with the lowest rate possible, but you don’t want to make a 25 year commitment to a house you don’t completely love just to save a few bucks.
6. "This is the best insurance broker with the lowest rates."
Once again don't be pressured into anything when it comes to buying your home. Just like you should always negotiate the purchase price of your home and visit several houses in the area before making an offer, you should also shop around to find the best home insurance rates.
Go online and get at least three quotes before buying home insurance, this way you can ensure you're getting the best deal.