Several hours ago, earlier today, we had a call from a fella who said he had a horrible experience with a Realtor when he bought his current home.
He stated to me that his real estate agent was also his lender. Not only did that “lender/realtor” charge him an exorbitant amount to get the loan (3%), he also charged the buyer a commission on the real estate transaction side, (3%).
The real estate seller, on this particular deal, as in most others, was paying the commission to the agent representing the home buyer. This agent was truly gouging the home buyer.
So hence his apprehension to agents. We met today at noon. I explained how a typical transaction is supposed to work and he agreed he was taken advantage of. Even more remarkable was that this buyer is a full-time Sheriff and his agent/lender was also.
This was big time during the fall of the real estate market. We had heard this very scenario conveyed to us by a bunch of our short sale sellers. I’d venture to say over 40% of them shared something similar to this.
It’s sheer greed and I’ll let you know how to watch out for this very thing. We do one thing well, that is real estate. The singular act of representing buyers and sellers in the purchase/sale of homes, townhomes, condos and all residential real estate.
I will tell you there are things you can ask your next real estate professional that will keep you safe.
Ask if you were to ask for a referral to a lender, who would that be? Then ask who they are to them (the agent).
Find out if you are paying your real estate agent anything to get their help. Then if they say their service to you is FREE and they are getting compensated by the seller 100%, have them put that in writing.
Also, see if there are any “transaction fees” or “office fees” which will be attached to what you are paying. It may be true you are not paying your real estate agent. It may be the case their office charges something.
I’m Connor MacIvor with REMAX and I’m glad to be at your service.