What Advice From Your Real Estate Agent You Can and Cannot Rely on When Buying a Home

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I love the internet for all the wonderful tips and information I can find in a few minutes. The other day I ran into an article (see link below) where the author had very little good to say about dealing with a real estate agent. He decided that ALL agents are selfish, dishonest and will not give you the advice you need.
I found most of his advice impractical and unrealistic. For example, he begins by telling you not to trust anyone when putting an offer on a house.

“Thinking about putting in an offer – Trust no one! The point when the buyer submits an offer on a house is a time when a lot of house buyers – particularly first timers feel out of their element and defer to their agent for advice. This is the worst thing you can do. Your agent gets paid when the deal gets done and only when it gets done.” 

What a way to begin a successful and delicate relationship! If you do not trust the agent, find one you do trust. What is the point of beginning such important negotiations with an agent you do not trust in the first place? The real estate profession is no different than any other profession. You will run into some highly professional individuals and you will also meet some of the bad apples.

The author goes on to give you more unrealistic advice:

“Things that your agent might say (and you should ignore) when you are about to put in a bid are: “Don’t bid too low or you will offend the sellers”. This is garbage – if the sellers can’t handle a low ball bid then they are unrealistic. And what exactly is a bid that is “too low”? I’m not saying put in an unrealistic bid but don’t be afraid to start lower and work your way up.”

If most home sellers were realistic, why does any one need an agent? Generally speaking, when a home goes up for sale, both the seller and the buyers can, and often do become highly emotional. Putting an unrealistic low offer will most likely hurt you. In most cases all you will accomplish is to antagonize the seller and have her look at you as an uninformed or greedy buyer.

Don’t try to straighten out a misguided seller. Move on and put an offer on another house. Even if you eventually bring a realistic offer to that other seller, she may not accept it since you have previously annoyed her. I have been selling real estate in central Toronto for more than 27 years. During that time I have learned many important things about buyers and sellers. Selling or buying a home is a very emotionally charged issue and it takes a toll on the best of us.

What can you do to make sure you are dealing with an ethical real estate agent that you can trust?
Here are three bits of useful and practical advise:

Firstly, ask a friend or relative to recommend an agent with whom they have had a good experience.

Secondly, ask the agent if there have been any complaints registered against her with the government regulator, the Real Estate Council of Ontario (RECO). You can inquire online or phone them.

Thirdly, ask for referrals from the agent’s previous clients, including the clients’ phone numbers. If you still have doubts, give a few of them a call.

You can read the entire article at: http://www.four-pillars.ca/2008/02/18/why-you-cant-trust-real-estate-agents-when-buying-a-house