There's no getting around it: buying a home is a significant decision. There are so many ins and outs of home buying, all of which can help you make the right choice at the right time for you. There are certain things everyone should know when buying a home. Above and beyond all other tips, it's important that you seriously understand some of the techniques real estate agent make use of. For new buyers that have no experience, you might know about this.
So, below are some of the tactics to keep an eye out for.
1. Describing the vendor as ‘motivated.’
To encourage buyers interest, some property is listed as “motivated vendor” (this is more common in slower markets). This will encourage new buyers to think that they have a good deal, or the vendor will accept their offer. Real Estate Institute of NSW president John Cunningham said, “it could be seen as baiting the expectation of a bargain and therein lies the problem but virtually impossible to prove.”
2. Marketing a ‘forthcoming auction’ that hasn’t been booked
Another techniques agent use to get buyers to make offers early is marketing or showcasing a “forthcoming auction” without the intention of taking it to the auction. Meanwhile, in a new buyer view, it will be hard to tell or know if the property will or not go to auction. However, some agent might plan an auction but ready to sell the home prior if the right offer comes through.
3. Reworking an old advertisement
Another technique that is common among agent is taking down a listing that isn’t performing. After some period of having the home off the market and bringing the photographer in, the home is relisted with a fresher look. Mr. Cunningham said in an interview, “Buyers are smart and recognize when a home has been on the market unsold for a long time. This technique allows the home to have a “second chance” at engaging the market.” But note that refreshing an old listing is very common, and there’s nothing wrong with the practice.
4. Not disclosing a price
This price is not illegal but is common for an agent not to provide a price guide to encourage more inquiry. Consumer Affairs Victoria guidelines indicate that “If no price is advertised, prospective buyers are more likely to ask a salesperson for advice on price.” This is a technique that allows an agent to engage buyers and let them view the property.
5. Making backhand promises
The last tactic an agent might use is one which Mr. Cunningham explains, “agents promising buyers that they will help them secure the home they want to buy so long as they list their current home for sale with them.” “This inducement is highly illegal and is fraught with conflicts of interest, deceit, and it could be argued fraud because favoring one buyer over another to secure the sale of another property [comes] at the expense of the seller they are acting for.”
Buying a home is an intricate process that should be handled firmly, and with diligence. Be prepared to make one of the most significant decisions of your life with ease and confidence by understanding what you should know before buying a house.