How Realtors Cheat You

How realtors cheat you

BUSINESS Real Estate

The main scam schemes in 2020.

Selling or buying a home on your own is long and difficult, and the result may not please, there are too many pitfalls. Therefore, contacting real estate agents has become a common thing for a modern person: to sell, buy, exchange, rent, or lease – the realtor will assist in everything. However, as with any sphere related to big money, the real estate path attracts many scammers who see it as a get-rich-quick route. In this article, employees Academy of Sciences “Vladis” has collected for you the main schemes and signs by which you can easily recognize that they are trying to deceive you

You are being deceived about the risks

It is no secret that the market is full of “problem” housing: incapacitated owners, use of mother capital when buying, sudden heirs – this is not a complete list of what the buyer may face and what threatens him with considerable problems, up to the loss of the purchased apartment, in the future. Therefore, many turn to realtors – hoping for a legal check and assistance in finding a “clean” apartment without dubious transfer of rights and similar surprises. In a decent real estate agency, such a check will be carried out without problems, because this is precisely why there is a special legal department specializing in real estate transactions.

However, there are unscrupulous agents (usually they act on the part of the seller concerning the buyer) who deliberately withhold the facts they know about the housing being sold. 

As a result, the transaction may go smoothly, but later the buyer will face difficulties. For example, a person who is on a long business trip or is serving a sentence in prison may be registered in an apartment, debts for housing and communal services may appear, or heirs, which the seller has not mentioned, may present their right.

One thing will help not to get into such a situation: if the seller has a realtor who helps him sell the apartment, the buyer should not trust him 100%. The agent acts in the interests of his client, he needs to sell the house, and then at least the grass does not grow. The buyer needs to be extremely careful when studying the documents, and ideally order the very same due diligence to be sure of the cleanliness of the acquired living space.

Give your money

This deception scheme appeared in the “dashing 90s”, but it is still successfully practiced by fraudsters in the real estate industry, especially in regions far from big cities. The victims are usually retirees who do not trust banks and prefer to keep all their savings in cash.

The trick is that the tongue-in-cheek agent coaxes the victim into making the calculations “through the safe”, standing by the agent himself. Allegedly, banks charge an incredible commission for such a service, but he will take very little. Everything turns out to be quite the opposite, and the commission in the bank is much lower than that required by the intermediary, but pensioners usually do not check such nuances and agree to additional expenses.

There are other options to get more: dealers deliberately overstate the cost of the object of sale, and put the difference in their pocket; sometimes they demand a commission for their services from both the buyer and the seller, regardless of which side acted as the employer, some do not hesitate to take money for organizing shows.

Acquaintance

When contacting a realtor “by acquaintance”, many hope that they will be provided with the same range of services as in the agency, but at a lower cost. Because of friendship. No one has canceled the adage “the miser pays twice”.

A realtor, taking on a client, hopes to make money. And if a client “by acquaintance” expects to pay less, the realtor simply has no motivation to deal with his problems. He will put the “friend’s” apartment on the back burner, devoting time to more profitable projects. As a result, the client may pay less money, but he will also receive services “in installments”, and it’s good if there is a buyer for housing.

The client finds himself in a doubly disadvantageous situation: after a while, he will notice that the realtor does not show due diligence in selling his apartment (or searching for a new home), but it is inconvenient for him to refuse services, because “so much has already been done” and “well, this as an acquaintance, how can I say that he is not trying enough. ”

For real estate agents, such would-be assistants also become a burden, because after that it takes a long time to restore the client’s faith in the professionalism of realtors.

What distinguishes a professional from an amateur?

A good realtor is aware of the dynamics of prices and the cost of apartments in the area, he will immediately be able to name the market value of housing. A good realtor will tell you how to make an apartment “sellable”, how to compose an ad, and how to take high-quality photos. A good realtor will answer any questions of the client and will not hide his actions and plans from him. It’s all lyrics.

We bring to your attention a plan that will help you choose a true professional:

  1. Give preference to an agency over an individual. The agency, if it is not the first year on the real estate market, values ​​its reputation, and also has the resources to develop its employees professionally and maintain their high qualifications, as well as provide clients with several related services: legal due diligence of housing, assistance in obtaining a mortgage loan, etc. .P.
  2. Study the reviews and recommendations, and you should not trust the words of one person, otherwise, you can get into a situation with a realtor “by acquaintance”. Now the Internet is accessible to everyone, and on the World Wide Web, there are special sites dedicated to reviews of the work of certain specialists. If many people speak of a particular realtor as a solid professional, you can trust him.
  3. If you have chosen an agency, pay attention to whether it is a member of the Russian Guild of Realtors – not everyone is awarded membership in this organization, but only leading agencies that demonstrate high quality work.
  4. The working time speaks about the quality of the agency – if it has been successfully afloat for more than a dozen years, you see banners and advertisements, it means that it is doing well. And if the agency employs non-professionals, it will not last long on the market.
  5. The location of the office also speaks volumes. A reputable company has one or more representative offices in locations with good transport accessibility. Their office is decorated with a large sign, the administrator will meet you at the reception, offer coffee or tea, and lead you to an equipped meeting room. All of this speaks for the agency’s status and also that it is doing well. If you need to go to hell to meet with a realtor, look for a room in a confusing building of a business center that was once a factory, can we talk about the success of agents?

Buying and selling real estate is a responsible business, where the risks are in the hundreds of thousands. Take the time to find an experienced realtor with a rich professional portfolio and do not hesitate to refuse the services of those who are not credible. Thank you for like and subscribing to the channel!

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