Whether you want to buy or sell a property, you need to contact a reliable real estate agent. A recent study reveals that many buyers or sellers choose the first real estate agent they approached without talking to other agents. Some first-time buyers often become a victim of massive money loss because of choosing a bad agent who ripped them off.
If you want to get in touch with a trustworthy real estate agent, you need to interview three or four agents so that you can compare their skills, charges, potential, and many more. With that, you can hire a decent real estate agent who would not rip you off. Read here to find the best, reliable real estate agents.
Top 7 Signs That Indicate The Real Estate Agent Is Ripping You Off
There are different types of ways some real estate agents use to gain more profits for themselves. Here are the top 7 warning signs which imply that your real estate agent is trying to rip you off.
1. Real Estate Agent Refusing To Negotiate The Expensive Rate
In general, the typical commission for a real estate agent is about 5 to 6%. But, some agents will try to take more commission, which is the first red flag that implies the agent is trying to rip you off. In addition to the high commission, a few real estate agents will also refuse negotiations.
Several trustworthy and reliable agents are open for negotiations because the scenario and the value of each house are different. Besides that, they usually charge the standard market commission or sometimes offer a deduction on the overall fee. Hence, consider asking for a discount on the commission with your agent.
2. Asking High Fees For Unnecessary Stuff
Another way the real estate agents use to rip you off is by making additional fees for unnecessary stuff. Some agents will even add hidden charges in the final commission costs, which they would not tell you at the beginning of the contract. If you see any hidden or extra expenses in the ultimate commission list, make sure to raise a question with the agent about it.
3. Hurrying the paperwork
If you have decided to buy or sell the property, then you need to complete the paperwork. When it is time to sign the agreements (papers), a few agents will try to speed up the process without providing you time to read or check papers. Some of the agents who have a hidden agenda of ripping you off will point out a few boxes on the paper and ask you to sign there. These agents are hurrying the paperwork so that you can not read the inside information.
If you see this is happening with you, remember not to sign the papers. Plus, make sure to check the information documented in those agreements. By doing so, you can take away the chances of the agent who tries to rip you off.
4. Ignoring Some Parts Of The Agreement
Some real estate agents will give the documents to read and check but hide a few papers which might benefit them. After reviewing the documents, when you start signing them, the agent will add extra agreement papers hoping you would sign them without checking.
If the real estate agent is reading out the documents to explain them to you, he/she might skip some crucial paragraphs stating that they are unnecessary. Hence, it is relatively significant to check all the papers before signing them.
5. Asking You To Sign On Blank Documents
During the time when you are signing the documents of the real estate property, a few agents might ask you to mark your sign on a few empty documents. However, it is risky to sign on blank papers, so avoid doing it.
The agents who ask you to sign the blank documents might rip you off by using those papers to transfer your property to their name. Besides that, they might utilize those papers to benefit themselves, making it dangerous for you. Hence, always read, inspect, and understand each and every line in the documents before signing them.
6. Real Estate Agent Is Not Willing To Show You The Agent Version Of The MLS Sheet
Are you aware of the information that there are various editions of MLS sheets? Besides the sheet you get, the real estate agent will also receive an agent version of MLS sheets. The agent version sheet will comprise crucial data such as the profits of the agent when you purchase the property and more.
So, if the agent is not willing to show the sheets to you, it indicates that he/she is hiding something from you, which is a big red flag. The sheets might contain information that could incur a loss to you or highly benefit the real estate agent.
7. Displaying More Fees Than The Agreed Price
When you first visit the property to inspect it, you may have a talk with your agent regarding the price. After inspection, if you are interested in buying that house, you might have negotiated and finalized the total payment with the agent.
Some agents who want to make more profits will increase the cost of the property at the last moment while you are signing the house documents. Because you already have plans of acquiring this property, you will end up paying more money than the initial price.
We have tried mentioning almost all the red flags that indicate the real estate agent is ripping you off. Now, as you understand these things, it is better to leave the agent who tries to rip you off. Besides that, if you notice any of the above things are happening when you buy or sell a property, then it is time to look for a new agent and abandon the existing one. If you want, you can interview top-rated agents and choose the most loyal and trustworthy real estate agent.