When you are looking to buy a property on sale, it is easy to be caught up in the excitement of the entire process. A visit to an open house reveals the home of your dreams where you can visualize the photos of your children, the dog’s water bowl and the swing set in the backyard. Unfortunately, when buyers fall head over heels in love with a house, they often fall prey to sneaky sales tactics common among real estate agents. Even the best property agents occasionally resort to some of these methods in order to finalize a sale.
Many times, a real estate agent will contact a buyer that showed interest in a home and claim that there has been an offer on the home, indicating that the buyer should “act quickly” or risk losing the home that they love. Quite often, when the buyer believes they have found their dream home, they will rush into a deal, often paying more than the value of the home. The best way to handle this type of sneaky tactic is to inform the agent that you have not made a full decision, and that if someone else has made an offer, they should accept it. Inform them that should that offer fall through, to keep you in mind. In many cases, the other deal “falls through,” giving the buyer more negotiating power.
Listing and Re-Listing
Even some of the best property agents ask a seller to remove a property from the market for a short time and then relist it, especially homes that have been on the market for several weeks, or even months. When you decide to buy a house for sale, if at all possible, be familiar with the area. When an agent says that the property was just listed and will go fast, you have much better bargaining power if you can say “I drive through here all the time, and there has been a for sale sign in the yard for months.”
Along with knowing the area, it is critical when buying a home to Know the Property Values in the neighborhood where you are planning to buy. Being unaware of property values can result in paying a higher price for the home. In addition, some states require agents to inform potential buyers of potential negative factors about the home that could influence resale value. For instance, if the home was the site of a grisly murder, many agents will market the home to out-of-town buyers, who then purchase the home without knowing the history. Because such events can affect the resale of a home, some states enacted laws requiring agents to notify any buyer prior to the sale. However, it is difficult to enforce such laws, and agents may still hide such facts from potential buyers.
By avoiding these common sneaky tactics by property agents, you stand a better chance of negotiating the purchase of your next home at a reasonable price. The best advice is to know the neighborhood, know property values and learn the history of the home before you agree to buy.