Today, I found a good article from SmartMoney.com featuring 10 secrets real estate brokers don’t like to tell their clients.  Having never purchased a home, I wasn’t really aware of a lot of these, but after a quick read through, I found they all make sense. 

Although home ownership is not my specialty, I am familar with how brokers work in areas other than real estate.  Having said that, I have always found it to be in my best interest to avoid them and their services altogether. 

Below is a summary of the 10 things real estate brokers don’t want you to know according to SmartMoney.com’s staff.  If you want to read the original article just click the link above.  Enjoy!

10 things real estate brokers don’t want you to know

  1. Your open house serves their interests more than yours:  Although many brokers encourage open houses, the article sites a study that found their success rate to be a mere 2-4%.  To you and me, this figure might not justify the effort needed to hold one.  However, for the broker, your loss is his or her gain, as the exposure to potential new clients makes up for a weekend of work.
  2. Fees are negotiable: One can negotiate lower fees, although a broker would not tell you that.  Remember, with the housing market in rough shape, the ball is in your court.
  3. You have more offers than you think: Although brokers are legally obligated to report all the offers they receive, some may chose not to tell you, because the offer you chose to accept affects their final fee. 
  4. There is no obligation to be tight lipped:  If you make an offer for one price but hint that you’ll pay thousands more, the broker will likely pass that information on to the seller.
  5. Loyalty is not a sure thing: Remember, brokers work for a commission.  That means their main interest might not be getting you a fair price, because the higher for them, the better.
  6. Being a broker does not make one a zoning expert:  I have seen this a few times at the law office where I work.  Brokers will tell you anything to get you to purchase a property.  However, some of those modifications they pre-approve, might not follow local zoning regulations, which can lead to big headaches down the road.
  7. Problems are sometimes kept secret: Do not use anyone on the list of home inspectors provided by your broker.  Often times, they are in “cahoots” with these individuals.
  8. Brokers are not lawyers: According to the broker/lawyer interviewed for the article, brokers often “draft language that can have consequences without really understanding it, but they want to keep the sale going.”
  9. Websites can be deceiving: Most people employee the internet when they are searching for a home.  However, some brokers list homes on their site that have long been sold to bait potential clients.
  10. You can do without their services: This was my favorite on the list because it is so true for all brokers.  No matter what they are selling, brokers tend to “play up” the difficulty in buying and selling, so that the majority of Americans will utilize their services.  Thus, whether your dealing in stocks or homes, do some research and skip the broker altogether.  Do you really want to trust your finances with someone known as a “broker?”