When researching the property market we found a number of articles discussing the tactics which some real estate agents use to close a sale. It has to be said that the vast majority of real estate agents are honest and upfront but there are some who like to push the boundaries as far as they can. Whether or not you base any of your investment decisions on the comments and advice of a real estate agent is up to each individual investor but you do need to do your own research.
Let us take a look at some of the alleged strategies used by some real estate agents to close that elusive deal.
How many times have you heard a real estate agent suggesting there are others “about to make an offer” or the “seller is about to take it off the market” as a means of creating urgency and in some cases panic. This may seem a relatively innocuous strategy when looking to sell a property but sometimes when urgency and panic take over some investors find it difficult to remain level headed. They may offer over the odds, they may agree to complete a property purchase without the necessary checks and sometimes they can over invest and stretch their finances.
This is why you should never deal on emotion and if you do feel that your emotions are getting the better of you, give yourself some breathing space, step away and consider your options in the cold light of day. Do not rush into any investment!
Potentially misleading statements
There are many reasons why you may invest in a particular property but on the whole there has to be something special about the region and it has to have good prospects. A number of potential buyers have stepped forward to discuss potentially misleading statements from some real estate agents which are so vague that it is difficult to prove anything. They may revolve around potential new businesses in the area, rezoning by the council, further property developments and “interest” in the property you are looking at.
On the surface these are not necessarily misleading but for some people they may give the wrong impression but nothing ever seems to be certain. It is much the same as quoting a price of for example £100,000 and above. What exactly does that mean? Take a step back and think, what does it actually mean?
Busy open days
Often it is a very small percentage of real estate agents who can in some cases give others a bad name. There have been alleged incidents where some real estate agents bring in friends and family to make open days and viewing days seem busier. It is maybe a little far-fetched to believe that a significant number of those operating in the property sector would use this type of strategy but then again how do you prove it?
The simple fact is that when you attend a viewing day for a potential property investment you take all of the advice and information given and then do your own research. Your research may back up claims made, it may reveal potential issues but at the end of the day it is you who sign the papers and your money being invested. Unfortunately, while there is some recourse to those advisers using dubious methods the buck literally stops with the investor.