Are Real Estate Agents Raising Prices Illegally?

HousingWire Survey (Copy)

It is simply amazing how in the recent times the real estate ethics has moved. Earlier where simple tactics and fair pricing was the order of the day, today it seems to be more ethical for the agents to bargain for rocketing prices. Around every corner you are sure to find real estate agents who can go to every extreme measure to make sure they get huge prices for a higher piece of the cake. It is true that recession has put some brakes on this tendency of real estate agents. Yet on the whole, the prices are being raised illegally by such real estate agents and you need to be aware about what the real ground facts are before you make the deal. 

Flipping is a very common practice amongst real estate agents. This means the practice of buying the assets and quickly re-selling it for a profit. This is a way used by the real estate agents to raise prices illegally. A rise in the price of such properties has a continuous chain type effect and it will lead to a rise in the value of property in the surrounding areas as well.

Today there are many questions being posed by consumer forums about the practices of real estate agents like are buyer broker bonuses legal, is dual agency a bait and switch, or what role do the realtors actually play in a mortgage meltdown. Here are some negotiation tips so that you can keep away from falling in for such real agents out to play foul: 

  • 1.Check out if the seller is actually motivated to sell the property. If you find the seller simply playing chances and not actually interested in selling the property, make sure you steer away from it. If the seller is actually interested, they will be ready to negotiate with you and give you the deal at real good prices 
  • 2.Always make complete inspection of the property before you make your first offer. If you do not do this, you will fall on the back foot right from the first step of negotiation  
  • 3.Talk directly to the seller before you make the deal. This will help you to get a clear picture of the sale. Never let the agent take the upper hand during the entire negotiation process 
  • 4.Make sure you have more than a single offer in mind yet keep a limit about how far you are ready to go to get this property. Make at least three different offers before finalizing a single one out 
  • 5.Read through the clauses and contingencies before signing anything since you do not want to regret later on 

Hiring a genuine real estate professional with experience and knowledge could be the difference between making good and bad deals. Seek both quality and quantity through transparency in all their activities. Make sure that the agent you choose does not fall in the category of ‘buy now, real estate prices always go up’ category since they are sure to bluff the prices gratuitously. Look out for competent representation when buying or selling houses since that will ensure a fair deal in all circumstances 

Want to Learn more about Flipping Houses? Download the Home Flipping Guide

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