It’s critical to have a solid working relationship with your real estate agent when looking for a home. Being honest and forthright with your agent will assist that professional in finding you the ideal home that meets your needs and falls within your budget. Many experts, on the other hand, say that there are certain things that buyers should not talk about with their real estate agent.
This may include personally identifiable information. It may also contain financial information that reduces your bargaining power as a buyer. Real estate agents can and should be trusted in the majority of cases. However, some agents may take advantage of sensitive information you provide in order to secure a greater commission or a quicker transaction.
That’s why it’s a good idea to think carefully about what you want to talk about with your real estate agent. Read on for advice on what you should and shouldn’t tell a real estate agent when shopping for a home.
Communication that is appropriate
First and foremost, you must realize that a real estate agent is on your side.
It’s critical for buyers to have open lines of contact with their agents, says Jennifer Okhovat, a Los Angeles Realtor with Compass. A buyer’s agent is someone who represents you and helps you find houses that you want to buy. She explains: “Consider it like having a lawyer on your side.” If you communicate well with them, a buyer’s agent will be better able to assist you in finding properties that meet your needs. It will also help you save money and time. For example, your agent can inquire about a property’s unique features from sellers or listing agents. They can also find information that isn’t immediately apparent.
Tamara Heidel, a real estate broker in Las Vegas, agrees.
Buyers must discuss their needs and desires for a home with their agent in a straightforward and concise manner. Finding the appropriate home necessitates constant dialogue, Heidel agrees. “Remember that agents are held to a code of ethics that requires them to safeguard and promote the best interests of their clients. As a result, you should have no qualms about discussing your budget, personal concerns, or wish lists with your agent.
The first thing to stay away from is your ceiling.
Nonetheless, some advise caution. They believe you should be cautious about certain topics and things you should never mention to a real estate agent. One of these subjects is how much you are willing to pay for a specific piece of real estate. Because agents will not intervene if you go too far, And if you’re offering a ridiculously low price, the agent and seller may not take you seriously.
Let’s say a house is $300,000. You tell your agent that you love that house so much that you’re willing to spend $330,000 on it. You could end up paying the agreed-upon sum or even more. ” Amy Freedman, a real estate broker/agent with UpFlip in Cleveland, agrees.
Indeed, disclosing your maximum budget could backfire.
“An agent may begin showing you homes that are far beyond your price range. Alternatively, your agent may pressure you to make bids before you are ready. Benjamin Ross of Mission Real Estate Group in San Antonio, Texas, agrees. If this occurs, you should fire your agent. They don’t have your best interests at heart.
However, you should get preapproved for a mortgage so you know how much you can spend. So that sellers and agents don’t know what your maximum budget is, your lender can generate preapproval letters in a variety of quantities. You can then give the seller a preapproval letter that corresponds to your offer.
Personal information is the second topic to avoid.
It is preferable to be able to speak freely and openly with your agent. That isn’t to say you should flash all your cards or reveal information that agents don’t need to know. According to Ross, there are three things you should never tell your real estate agent:
Your earnings “Agents simply need to know how much money you’re eligible for.” It’s none of their business beyond that, “Ross explains.
How much money do you have in your bank account? He adds, “This is for your lender’s knowledge, not your real estate agent’s.”
Relationships, both personal and professional. ” It’s also none of their concern. ”
Your credit score and financial statements are added to the list by Freedman.
While most agents are unconcerned about your financial situation, some may exploit it. So the wisest course of action is to keep your lips shut about these things, Freedman recommends.
Avoiding stressful circumstances is the third topic to avoid.
It’s also not a good idea to talk about things like a prospective divorce or a looming purchase deadline unless it’s absolutely necessary. This is because an agent can try to use the time constraint against you. He or she may try to persuade you to accept a seller’s pricing or contingencies as quickly as possible and without making any concessions. An irresponsible agent may also give this information to the agent for the listing or the agent for the seller, which means you have less power.
“You don’t have to reveal anything like this that you don’t feel comfortable with, “Ross explains.
However, Ross cautions, “if you’re making offers and are serious about buying, it’s critical to work with an agent you can trust.”