How to Deal with Real Estate Agents

One of the most intimidating aspects of looking for a new property to purchase is dealing with real estate agents.  A number of my clients have reported some very amusing and some very appalling stories of their dealings with a real estate agent when purchasing a home.Sold-house

Now this article is not to bag real estate agents, who I consider do a very necessary and sometimes difficult job. It is to provide
help to those of you who are looking to purchase a home in the near future.

The issue being that nearly all of us only purchase a property a couple of times in our lives so the skills necessary to deal with agents are not very well developed. With this article I hope to provide a few pointers to help buyers in their dealings with agents and therefore make the whole process a little easier.

The first thing to understand is that the agent is not working for you the buyer but for the seller of the property. Their job is to get the best price possible for the sale of the home.  Once you understand that then the whole dynamics of the sale process change.

The common sales dynamic goes like this.

Most buyers approach the task of purchasing a home by looking at properties on the internet based on their price range and then personally viewing the properties they like.  When they view the property they usually have a discussion with the agent who will reinforce the advertised price of the property and that the vendors will only look at offers that are very close to the advertised price. The prospective buyer will usually fall into this trap by making an offer that is usually a couple of thousand dollars less than the asking price, the vendors will counter the offer and the final price will be just under the original asking price.

The way to change this scenario is to do extensive DUE DILIGENCE before venturing into the real estate “jungle”. That is, make sure that you identify the suburbs you wish to buy in, do some research to gain an understanding of the prices in that area and what is and isn’t selling and why.

Even if you do a small amount of due diligence you will be in a better position to deal with the real estate agents. The way to buy the home of your dreams is through knowledge. If you spend the time doing the research before looking at properties the chances of buying a house for a good price will increase dramatically.

Also, doing the research will alleviate the most painful disease that afflicts people when they start looking to buy a house. It is called FOMO and stands for the Fear Of Missing Out. FOMO is a real estate agents best friend. This disease is especially prevalent when the real estate market is hotting up as it is at the moment.  FOMO can make you buy a house for a higher price than you would have ordinarily paid for it.

The way to deal with FOMO is to understand that any time you purchase something it is the role of the salesperson, in this case; real estate agents, to encourage you to buy now. By doing some research you will be better prepared to deal with FOMO and other human impulses. You will be more patient and objective when looking at properties.

In conclusion, the way to deal with real estate agents is to be prepared prior to beginning your search to buy a home. Do some research, gain some knowledge about the market and understand how agents operate. If you do this you will save yourself thousands of dollars when you finally purchase the property you want.

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