10 Dangers of Dealing with Poorly Trained Agents
by Kim Reid
Warning
:Selling or buying a San Diego home can be one of the biggest transactions you ever make in your life. That fact alone makes having a qualified and knowledgeable real estate agent critically important. However, many are tempted to deal with the less trained, hoping to save a little money.
Dealing with a well-trained and educated real estate professional cannot only save you money by making sure the deal is done right, but they can answer loads of questions on real estate and give you a better view on what to buy. Below, we have gathered ten of the things you should know about real estate agents to help you learn what to look for, as well as what to avoid.
1. Realtor vs. Real Estate Agent
– The two terms are often interchanged, but actually
mean very different things. Both hold licenses to list and sell real estate, but the Realtor is a member of the National Association of Realtors and has subscribed to a 17-point Code of Ethics. A few of the points include refraining from misrepresenting facts, cooperating with other brokers, and working in the best interest of the client.
2. Experience
– Having loads of experience is crucial to any real estate transaction. Instead of asking how much experience your real estate agent has, ask how many times they have renewed their real estate license? Many states vary within the two to four year range to renew a license and experienced real estate agents who have found success will often renew their licenses on a regular basis.
3. The Deal
– Knowing how to buy something is as important as knowing what to buy. Having a real estate agent who is highly trained can help a deal go through, as well as get you the price you want. Poorly trained agents can become emotional or irrational during a deal, as opposed to the calm that comes from experience and education.
4. Breaking up is hard to do
– Not every real estate agent you encounter will be the right fit for you, especially if a poorly trained agent. Sometimes, it is necessary to end relationships. Having a highly trained agent will make parting waysmuch easier, as no matter how good they are, they have been fired before and know how to do so professionally.
5. Take the money and run
– Did you know that all transactions involving real estate are bound by disclosure laws? If your real estate agent is poorly trained and doesn’t know, this can cause major issues in the fraud area. If an agent, seller, or buyer is offering you money under the table, don’t take it and see the above for what to do if your real estate agent thinks it’s a good idea.
6. Jack of all trades
– Real estate agents with little experience can often try and make money from other aspects of real estate such as lending and home inspections. To avoid conflict of interests and many other pitfalls, it is important to have an agent who is dedicated to his or her profession and has the freedom to fire a mortgage lender or escrow agent who does not guard the client’s best interests.
7. No surprises
– A highly trained real estate agent will ask you all the right questions before house hunting begins. They include “How much are you pre-qualified for,” “What is your time frame,” and “What neighborhoods are you interested in?” If your agent waits until the last second to ask you these and other questions, it is could lead to wasted time for both home buyers and sellers.
8. Honesty counts
– If your real estate agent offers to do something dishonest, for example lie about a loan agreement or home inspection, it can be truly dangerous. Offers of dishonesty for you are often complemented by other offers that can go against you, and it isn’t until you have gone through the deal to find out how disastrous the consequences can be.
9. Confidentiality counts
– Because real estate agents are privy to loads of important information about you, it is important to get a well trained one. Inexperienced agents can accidentally or even intentionally show your contact information, preferences, and even finances to others if they don’t know what they are doing.
10. Verify it
– If you want to do a quick search on your real estate agent before deciding on one, Google or research their name online. Your research may show reviews, community involvement and knowledge, and other information that may influence your decision on whether to hire and agent or not. In California, you can also verify real estate license and background information via the California Department of Real Estate License Check.
Kim Reid is a licensed real estate agent and owns the site Masters in Real Estate. She likes to write articles about everything related to Real Estate business and educating future agents.