by Neil Jenman
Reading time: 4 mins apx
Good and decent people often think everyone else is good and decent too. This is why they get hurt.
In real estate, “hurt” comes in two forms – financial and emotional.
The financial hurt comes from paying too much in needless costs. Dodgy agents will hit you up for extra fees for all sorts of needless add-ons.
The worst needless expense is “marketing costs”. Don’t fall for this scam. Australia is the only country where agents ask home sellers to pay advertising costs in addition to commission. In other countries, advertising is included in the commission.
Another financial hurt comes in under-selling your home. Just because an agent may be a “top selling agent” it does not mean they get top prices.
Oh sure, they seem smooth and successful. And yes, you may find yourself drawn in. But just remember Little Red Riding Hood. Charming agents are often wolves. They’ll eat up your finances as soon as you sign-up.
One of the most common statements made by home sellers who get caught by dodgy agents is: “But this agent is so nice.”
Or worse: “I really like this agent.”
Just like your friend who chose a dodgy partner. Everyone saw red flags – except your love-struck friend.
Remember the saying: “Evil is very seductive.” And that saying is applicable to hundreds of the dodgiest agents. They know how to seduce home sellers.
Thousands of home sellers regret signing-up with charming agents. The shame of being duped is often worse than the financial pain.
As one widow said last month: “I can’t sleep thinking how stupid I have been. My husband has only been gone a few weeks and now I’m trouble because I trusted this agent.” One with the laughably absurd slogan, “We put you first”.
Perhaps a few agents do put clients first. Most don’t.
So please, for your sake, remember there is only one way to know, for sure, if an agent is worthy of your trust. Focus on what they do. Not what they say.
So how do you know, for sure, what an agent will do?
There is only one sure way to test the trustworthiness of any agent.
Look at what they ask you to sign.
When your home is “listed” for sale, the agent will ask you to sign a “listing agreement”. Often, these agreements – which agents shrug off as “standard” – are deadly legal contracts.
So, here’s the challenge. Here’s how to tell if that agent you’re falling in love with (excuse the facetiousness) is worth a slice of your heart.
Do NOT sign that document. Get the agent to leave it with you for at least 24 hours.
Then read it carefully – with a magnifying glass (and that’s not being facetious). Some of the print is so tiny it’s hard for anyone over 45 to read without help. But that’s where the deadliest clauses are found. All the traps that a decent agent would never thrust upon you.
Here are some deadly conditions in “Listing Agreements” of many charming agents.
GOOD NEWS.
If you find that the agent expects you to be legally bound to unfair clauses, that’s a huge clue – this is an agent who can’t be trusted.
What most sellers don’t realise is that they can delete nasty clauses and add-in clauses that are friendly towards them.
At Jenman Support, we help you delete all nasty clauses. Plus, we insist that the agent you hire agrees to eight clauses that protect you. If the agent will not agree to treat you fairly, we suggest you use one of the best words to protect yourself: “NEXT”.
So, there you have it: No matter what the agent says, look at what the agent wants to do to you.
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FOOTNOTE: If you use Jenman Support’s FREE service when you are selling, we make sure you are protected from harm. Plus, we fight hard to make sure you get the best result possible.
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David Van Barneveld says:
Great article. I always look forward to reading them.
Cheers – David
Deborah Ravida says:
Another great article Neil!
Thank you – I will be adding this to my listing kit!
Adriane says:
This is one of the best articles on this site.
Helen Dasczyk says:
I had a awful time with my agent after I listed my apartment. First all seemed ok, a few lookers but no offers. After three weeks he said I had to meet with market and drop price by $15000. I wasn’t happy but agreed to his judgement. Came back with a ridiculous low offer I said no, never heard about it. I usually waited around pool area a chap came up to me said get another agent, apparently he was showing off to friends that viewed my place saying you should see me in action on selling ect. This guy didn’t enter my place and the agent plays music as well. Another fake offer I asked him to further the price, never got back. After 3months he says I’ll drop my commission by $2000 to relist I said no gave email a letter giving notice. I also had to ask them for the agency agreement cause I didn’t receive one so that arrived a week before the three months. I went down to pick up my keys and question the advertising price. He was rude to me said I should have taken the first offer and demanded the $3500 upfront or hell keep it listed! I got my keys from the girl in office and left broken. I waited then let them sweat then the office manager said he’d get the sheriff on to me if money wasn’t deposited in their account. I deposited after 2weeks. I sent fair trading a email as well and copies of my phone messages he sent threatening me. I have listed myself on marketplace Facebook and had many inquiries and one positive. I will never trust them ever again.
Phil says:
I’m not looking at selling at the moment. But once again this is an interesting insight and valuable advice. I have previously utilised your advice and wisdom. Keep up the great work. Thanks again Neil.
David Wilson says:
Hi Neil, Again a terrific and timely article. My mother in law has been diagnosed with dementia. My wife’s sister got an agent to come and give a quote. The quote was ridiculously low but he wanted exclusivity, marketing and of course he noted down his commission. This will not happen and I will advocate to sell this property through you as I’ve done with previous properties. I know that we will get the best price but also someone who represents us.
Lesley+Ellis says:
Thank you for such sound advice ….we have bought and sold 5 houses, albeit the last one being 17 years ago, but have never signed anything without a Solicitor checking the contract first ….one house in Sydney we sold after interviewing 9 agents before choosing one we felt we could trust. !!!!.. buyer beware….but have seen friends who were caught by the lack of good real estate advice like you always portray in your articles.
It’s such a huge event selling a house, so caution is paramount….
Thank you so much and kind regards
Lesley Ellis