August 03, 2014
To make things simple, we can categorize agents into two types. Real Estate Agents make money in the same way any commission salary based salesperson does.
The first type is the honest agent with the belief "If I work hard and treat my buyer with respect and honesty, the buyer will come back to buy more homes from me." These agent work by referral and they have a conscience.
The second type is the "I need to get the buyer to buy a house quickly so that I can move on to the next buyer (sucker) so that I can maximize my time for profit." These agents look at the commission and only care about getting it. Honesty and integrity does not matter to them.
The bottom line is that you are looking for the first type and you want to avoid the second type.
We'll call the first type, the Good Real Estate Agent.
We'll call the second type, the Bad Real Estate Agent.
So what kind of characteristics does the Good Real Estate Agent have that the Good Real Estate Agent does not have?
1. The first characteristic is Patience.
Bad Real Estate Agents will attempt to sell you a home quickly to get the money quickly. Do not buy a house without spending a lot of time looking at several different homes. Be careful of tactics such as Real Estate Agents claiming the house is the perfect and acting like a salesman rather than providing you with useful information. Bad Real Estate appear to be patient, but if you ever feel he need to go fast probably because you beleive the house is an awesome deal, then most likely, the agent has successful tricked you into moving quickly.
2. The second characteristic is information.
A Good Real Estate Agent needs to provide you all the information to let you make the informed decision and we are not talking about their opinion. Real Estate's opinion does not matter. Real Estate Agents have data such as the history of the house being sold at, homes being sold near the area and type. A Real Estate Agent should be able to provide you with a compilation of official documents that tells you these kinds of data to let YOU make an informed decision.
3. The third characteristic is care.
You will know this during the actual signing of the contract to purchase the home at a certain price. Once you become interested in a property and want to buy the property at a certain price set by YOU, you have to write up a contract. The contract consist atleast three conditions that will null the sale of the home and a security deposit.
The common three conditions are, buyer can get financing, the home passes inspection and the appraisal value of the home is above the price to be purchased. Generally, you will want the lenders to appraise the home so that you know the fair value of the home and the lenders would only lend of you are buying the home at fair market value.
The security deposit is an amount you will provide to lock the home from being sold to other buyers while you perform to checks to see whether these conditions have been met. If these conditions are not met, then you SHOULD get your security deposit back.
The Bad Real Estate Agents will want to you provide very few conditions and a big security deposit. Doing so ensure the home is more likely to be sold.
Do NOT go through the internet and pick the first agent you see or the agent that has the most advertisements. They are just spending marketing money which they intend to recover from you. I especially find the ones that are top ranked search engines to be the most conniving, especially the Mississauga location!!!
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