Purchasing a home will probably be the biggest purchase you will ever go through. So, it stands to reason that you might not have the experience to understand the ins and outs of how it works. This is when having a realtor can be useful. However, not everyone understands the dynamics of how a realtor and customer relationship works. You need a realtor to help guide you through the purchasing process of your dream house.
But keep in mind, that there are many things within that process that realtors will not disclose to you and are not required to. As you go through your house buying or selling process, it will be beneficial to know a little more on your dealings and have a general idea of what your realtor might not be sharing with you, read on below.
You Can Sell Your House Yourself
It seems that many people think to buy or sell a house you have to have a realtor, otherwise, how are you going to proceed with the buying and selling procedures? In fact, you don’t need a realtor at all. Realtors are great in making you feel that you will not be able to go through the process without them.
Having a realtor is definitely a benefit, you have someone to guide you, handle the paperwork, and conduct negotiations on your behalf. However, if you don’t want to, you don’t have to sign up with an agent. You can sell your property yourself through the multiple platforms available and save the commission money on your sale.
Know Your Neighborhood
Any realtor worth their money needs to know the neighborhood of the houses they are selling inside and out. Realtors need to conduct their due diligence on the neighborhood in order to be able to sell you the whole package. Let’s say you’re looking to move to Idaho, your realtor should know information about the area you’re interested in, the neighbors, the good schools, available nearby amenities, and more. That is the general information your realtor might give you as look into purchasing a home.
The other information that they might not disclose is the future prospects of the neighborhood. As the realtors at Stewart Realty who provide homes for sale on the market in Meridian Idaho explain, that for your home to be considered as an investment, the area it is located in is as important as the house itself. How prospective buyers categorize your area is important. It needs to be a hotspot or an up and coming area that will see house prices increase.
Realtors will know the future of a certain area based on the selling trends and might not disclose to you negative information if the neighborhood is on a downward trend. If there aren’t enough public services being implemented in the area you are interested in, it keeps house prices down.
An Open House Isn’t Necessary
While having an open house is a very common selling strategy and everyone who has their property on the market does it, it isn’t necessarily required to sell your house. Yes, it may attract potential buyers, but it is not the main reason your realtor will have you do it. An open house serves your realtor more than it does you.
This is the event that helps them in finding potential clients in the long run. That doesn’t mean holding open houses is a waste of time, it isn’t, it just means that the bigger benefit isn’t targeted towards the sale of your house. Your realtor will be able to promote themselves when passers-by drop in to see that house, get their business card out there, and collect contacts for future sales.
The Bigger the House the Bigger Your Problems
If you are in the market for purchasing a home and you can afford it, we usually tend to go for the bigger options. We want a bigger, larger, spacious house to fulfill our dreams. Your realtor is the person to help you find what you are looking for. However, what your realtor will want to tell you, but will not, is that the bigger the house, the more costly it will be for you in the short and long term.
We are trained to think of purchasing houses as an investment, and it can be one, but only when done right. Any investment should either be generating cash flow now or will provide you with a high ROI in the long run. An overly large house will do the opposite, as it will require a lot of running costs to maintain it. This means more taxes, higher bills, running maintenance costs, and more. Your realtor might not tell you this simply because a large house means a larger amount of their commission.
Developer Warranty is Worthless
If you have an agent helping you with a subdivision that is still under construction, then your realtor and the developer’s agents will be offering up warranties for the new construction. These warranties are to protect against building defects, incorrect implementation of the house design, faulty electrical work, delaying the house hand-over, and more. However, the issue with that is that these warranties are pretty much useless.
These warranties and contracts are worded in fine print and vague terms, that it can be impossible to clearly identify the technicalities of it. In addition to that, most builder contracts include a clause against your ability to sue them if you are not satisfied with your house. That means you will end up bearing the cost of any repairs and changes. Realtors do not disclose this information to you because the chances of these issues happening are not considered high, while they prefer to close a deal as soon as possible.
Purchasing a home is a big deal for you. It is an everyday occurrence for realtors who work with clients day in and day out. Most realtors are ethical and will let you know the information that will be critical to your decision making process. However, realtors are not loose-lipped and will hold on to their trade secrets for as long as it isn’t hurting you and they can gain more money. Knowing the general trends and considerations when buying a house will help you stay aware and not take everything that your realtor says for granted.