Real Estate Agents - Can you really trust them?

Sellers have many varying reasons for either wanting to, or needing to sell their home. The buying and selling of real estate involves a person's largest asset (though strictly speaking, purchasing your own home is a liability as it takes money from your pocket each month). An asset should be something that puts money in your pocket each month - not takes money out of your pocket. Though paying off your own home is far more beneficial than renting, it still is classed as a liability as it takes money out of your pocket each month (if you have a mortgage) - rather than providing you with monthly cash flow. Many property speculators will say that paying off your own home is an asset as it goes up in value, but the recent global financial crisis has shown that property prices don't always go up in value. So if you are counting on capital gains - you may need to think again! When buying and selling real estate traditionally, there is usually a real estate agent involved.

At We Buy Homes.com.au we have been around the traps long enough to have seen and heard much come out of the mouths of real estate agents. The behavior that we have witnessed from some real estate agents has been disgusting. We have spoken with hundreds and hundreds of sellers  frustrated by the empty promises of real estate agents and still holding onto a property that is not sold. We are no longer surprised by real estate agents behavior and actions. It is true but unfortunate that it is possible in real estate to act legally but unethically. Often real estate agents are the ones who make this statement a reality!

The governing body that trains real estate agents is called The Real Estate Institute. The Real Estate Institute to a real estate agent is like what mortgage insurance is to a bank. The Real Estate Institute protects the real estate agent - not the consumer. Do not be fooled if you are using a real estate agent that proudly shows signage of being a member of the Real Estate Institute - this offers you as the consumer NO protection but the real estate agent FULL protection.

The real estate industry in Australia is in desperate need of full reform. Sellers and buyers in the real estate marketplace really need to do their homework before dealing with anyone in the real estate industry. The buying and selling of property is really not that complicated - most average Australians would be very surprised to find out how easy it is to take their real estate needs into their own hands and buy and sell without using a real estate agent. Just think - the seller would keep all that hard earned equity to himself and not give it away in agents commissions!

Neil Jenman, who is a great consumer advocate in the real estate marketplace, has written a must read book called "Don't Sign Anything." This book exposes the real estate industry and the corrupt play that goes on everyday with the general public of Australia as its victims. If you are planning on selling your home - this book is a must read BEFORE you sell.

Most real estate agents don't know or understand how a flexible terms house sale or purchase works. Real estate agents feel that the real estate market belongs to them 100%. Selling using flexible terms often threatens real estate agents as they are losing their opportunity to gain a listing. To a real estate agent the listing is the most important part of their business. After all - if you don't have a house to sell then you don't have anything to sell so you cannot make any commissions! The listing is worthless though unless the agent can find a buyer.

Often real estate agents will appraise a property at a listing presentation far higher than they know they will be able to sell it for, just to win the sellers business. The real estate agent will then keep coming back to the seller, asking the seller to drop his/her listing price with the reasoning that "the market isn't prepared to pay that for the property, you'll have to drop your price." This is what agents call "conditioning".

Real estate agents are "supposed" to work for the seller to obtain the best possible sales price for the property. After all, it is the seller who has signed up for the agents services and will be paying the agent their commissions when the property is sold. We don't know about you, but the amount of times that we have walked through homes with real estate agents and begun to ask a few basic questions about the sale, the agent has given away information that lets us know not to put forward our best offer due to the seller's circumstances.

You do not need to give away control of the sale of your most important asset (although strictly speaking, an asset is something that puts money in your pocket, not takes money out of your pocket)  away to your local real estate agent.  If you are going to, you need to do your homework first and keep the agent that you choose totally accountable. He may not have your best interests at heart, but he certainly will have his commissions on his mind. Remember, it is your hard earned equity that you will be parting with to pay the agent his/her commissions, even if you have been "conditioned" by them to drop your sale price.

There is another way to sell your home other than using a real estate agent. Its called a flexible terms sale. The rewards are great, you will achieve what you are looking for in your sale price if you are happy to bring flexible terms to the table for a buyer who cannot obtain bank finance right at the moment. You will save thousands by keeping your equity in your own hands, not giving it away in real estate agents commissions and fees. You owe it to yourself to investigate the selling of your home without using a real estate agent. It is not hard. You owe it to yourself to stay in control of one of the biggest financial moments of your life. You will even surprise yourself at the rewards and confidence you gain!

Our DIY Rent to Buy manual explains in full how each of the Rent to Buy deals work. We also cover solutions for sellers who may find themselves in a distressed situation and needing to sell quickly to prevent their bank or lender foreclosing.