If you decide to sell your house, the first person you’ll probably call is a real estate agent. Real estate agents can often help sell your house faster and for a better price, and they can also be very useful when you’re searching for your new house. Ultimately, though, real estate is a business, and a real estate agent needs to make money from the sale of your house. Unfortunately, this sometimes leads to underhanded tactics. It also means that real estate agents will sometimes keep information from you to convince you to sign with them. Here are twelve secrets of the real estate industry that your agent would hate you to know before you sign a contract with them.
1) You Might Make More if You Sell It Yourself
Real estate agents hate to admit it, but sometimes, you’d make more if you simply sold your house by yourself. In 2007, Northwestern University conducted a study about this in Madison, Wisconsin. They found that homes sold by the seller themselves netted the same amount as homes sold by an agent. Since the sellers who sold their homes on their own didn’t have to pay a commission to an agent, they were able to get more money overall. However, the study did also find that it often takes longer for a seller to find a buyer on their own. If you have the time, before signing with an agent, try selling it yourself. If weeks or months go by without a buyer, then it may be time to sign with an agent.
2) Agents use Open Houses to find new Clients
Most sellers believe that an open house is just for prospective buyers to come and view their house. While this is true, real estate agents also have another motive: they use open houses to find new clients. Agents know that only one out of every five or six people who enter your house are truly interested in your house. When they learn a prospective buyer isn’t interested in your house, they’ll offer to show them some of their other listings in the area. Even though everyone who enters your house won’t be interested in buying it, it’s still a good idea to hold an open house. Many sellers have found their buyer through an open house. Open houses are useful for selling your house, but it’s important to know that for a real estate agent, that isn’t the main purpose of it.