PH Real Estate - 10 Hidden Secrets Your Real Estate Agent May Not Tell You; #3 Will Shock You

Dreaming of having your own home is not a sin. But not knowing how to choose properly is. Nowadays, you have to be vigilant when buying a new property. There are scores of real estate agents or brokers, who would not reveal some significant facts just to close a deal. You must be street-smart to know how to deal with this situation. To assist you in this endeavour, here’s a list of possible hidden secrets of a house or property that the real estate agent may not tell you.

 

Although a Code of Ethics is in place for agents, sellers and inspectors, there are some unscrupulous individuals would not blink an eye to put one over you.

 

10 Hidden secrets your agent may not tell you

• The inspector is in-house

Your agent may not tell you that the house inspector is from the seller, thus, he may focus on the minor defects of the house and ignore the major defects. To decrease the possibility of this from happening, you have to bring in your own inspector to do the job.

• The neighbours aren’t friendly

The broker may hide this truth from you because he doesn’t want to lose a sale. You can qualm your fears about nosy, unruly and unfriendly neighbours by finding a way to go around the neighbourhood and acquainting yourself of your probable neighbours.

• The house is not a good investment

The popular notion is that purchasing a house is a profitable investment. This is true in cases when the house is well-maintained and is not ‘ancient’.  Your broker may be selling you a house that needs major renovations and is therefore not a good investment. Nonetheless, the land that the house stands on is an excellent investment. This is because the value of land, most often, appreciates.

Unless you flip the house (renovate, remodel and sell), you won’t be earning from it. On the contrary, you will be spending chunks of money every month just to maintain your home.

• The area of the house will soon be a government zoned area

The real estate agent may not inform you that the area where your house is located will soon be government-zoned. This can be because of your government’s development of the entire area. You may want to inquire from your local government or the concerned agencies of any plans for the area. You wouldn’t want your house’s front lawn to become a national road, or something similar, would you?

Also, if the area is zoned, there are certain government laws that you have to follow, such as no commercial establishments near residential areas; no fences; and no gates. The worst part is being forced to sell your property at a dirt cheap price because the government has to use your land for national development. That would be a major financial setback. Ugh.

• The liquidity of the property

Another important thing is the liquidity of the house. Your agent may not tell you that selling the house in the future would not be as fast as you think. Many agents won’t tell you about this fact because their primary objective is to make a quick sale. Selling the property later is your problem. Even if you will re-list your property with the same company, they can depreciate the value.

An excellent option is to sell your property directly to buyers. You can put a notice that brokers are not allowed, and that you would stick to your price.

• The commission of the agent is negotiable

The agent or broker may not disclose that his commission is negotiable. But this is an issue that you can always negotiate with him to get a lower price for the property. Think about it from the standpoint of the agent: Why would he reveal this fact when it can mean the reduction of his pay check? Sounds like a valid reason, right? Nevertheless, this is a bargaining chip that you can use.

• The actual price of the house

For most properties, the list price is not the lowest price of the house. This is most especially applicable when the property is listed under a broker. It’s understandable that the price is jacked up because that’s where their commissions come from. Hence, you can search for houses that are directly sold by the house owner. This eliminates the need for a middleman, which can increase the price of the property. It’s recommended that at the onset, you must hire an appraiser to determine the value of the property. From there, you can have a factual basis of the property’s actual price.

• The promises of your agent may not be honored later

Agents can make lots of promises to sell you a property, but unless these promises are detailed in the contract, they won’t hold water. There’s such a clause “Disclaimer of Promises” in most contracts, in which the owner or seller of the property disclaims the promises made by the agent. The sales contract may also have some loopholes, which are ignored because they may seem irrelevant.

To avoid problems with the contract, let your lawyer go over it to iron out kinks and look into statements that could be detrimental to your interest.

• There are better properties for sale.

Most likely, the in-house agent will hide from you the fact that there are better properties in other real estate companies that would fit your requirements. Instead, he would convince you about how the house is a perfect catch for you.

He would go into the details of the house, describing the newly installed electric cables, the renovated windows with security grills, and the other positive aspects about the house. But, he might never reveal the negative areas of the house. Knowing this now, you must do your own assessment with your own inspector.

Awareness of these hidden secrets will provide you a better bargaining power, and the best real estate property that’s worth your effort and money. You should stay alert and aware of the processes during your house-hunting. Don’t depend entirely on your broker because these are not the only hidden secrets they have. They have many more, depending on how ethical they are. Nonetheless, don’t allow these bad practices to discourage you from searching for your dream house. With patience and diligence, you will eventually find your perfect home.

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