Offer1's Blog

Is Real Estate Gamed Against The Consumer?

Written by Offer1 | Jan 9, 2023 4:01:00 PM

When looking to buy or sell a home, it can be stressful, confusing, and expensive. Is it intentionally difficult, or is there an underlying cause? Are the odds stacked against the consumer when it comes to getting the best value? Today, we’ll look at a few things for buyers to be prepared for in the real estate process.

Most real estate training misses the mark

In a buyer’s market, listing agents tend to advise their clients to overprice properties.

Overpricing properties can be detrimental to both buyers and sellers for a number of reasons. Overpricing may seem more competitive, but it tends to stigmatize the property. It can lead to fewer showings as well since the property is far above the asking price of other neighboring properties. Because buyers are wary of paying for an overpriced property, it increases the days on the market and eventually, the seller will need to drop the price to below-market value in order to sell the home. What may start as an idea to make more money may end up costing the seller more in the end.

Most training for agents revolves around how to get a client rather than how to service a client. 

Many real estate agents are trained to get clients and close deals rather than service their clients through the entire real estate process. Homebuyers are often left fending for themselves as soon as the deal is closed. Having an agent who utilizes a consistent and repeatable method or tool to deliver the best results is critical when making a decision..

It’s important to keep in mind that you don’t spend at the top of your budget on a home. You need to allow for flexibility for unforeseen costs. As inflation increases the cost to repair, rebuild, and renovate homes, there is also the possibility that insurance rates will increase, too. In addition, taxes can increase and your monthly payment can also increase if escrow goes up. 

Be open to the idea of appealing tax increases with your local tax office. Generally, homebuyers have a set timeframe in which they can appeal an increase in taxes which varies from place to place. Negotiating with your insurance company may help lower your payment, and speaking with your mortgage servicer may allow for some options, as well.

Dual agency and closed negotiations can lead to conflict

Real estate agents can represent both parties buying and selling a property, which is called dual agency. However, it can be difficult for the agent to remain objective, particularly during the offer and negotiation process. When the agent is working for both the buyer and seller, it can lead to a conflict of interest and compromise the agent’s integrity. It is very difficult to ensure both parties are receiving the best possible deal with the best possible service. Until a tool like OFFER1 came around dual agency was usually not recommended. Dual agency is also illegal in Alaska, Colorado, Florida, Kansas, Oklahoma, Texas, Vermont, and Wyoming because they understood the potential conflicts that occur using the OLD/Traditional method of managing offers and negotiations..

OFFER1 displays the highest offer* so buyers have comfort in knowing exactly where they stand and don’t have to worry about any type of backroom deals. Seller’s also get the comfort of knowing every offer submitted to their agent is automatically sent for their review as well.

The real estate process is confusing for consumers 

The real estate transaction is completely inconsistent 

The real estate process lacks consistency and it often alienates consumers. Many people buying a home feel like they’re left out of the process and that it lacks transparency, which are major stressors in the home buying process. A lack of industry-wide consistency certainly attributes to the stress of buying a property. 

OFFER1 solves this problem by introducing a consistent method of handling negotiations so everyone knows exactly what to expect. Choosing an agent who uses a service like OFFER1 ensures a consistent, transparent process. Additionally, OFFER1 ensures that your offer will never be missed by the buyer.

Consumers sell a house roughly every seven years. It can be difficult to find a quality agent that works for you.

Consumers buy and sell homes rarely. Because of that, they lack the nuanced understanding that an experienced real estate agent would have, which makes it all the more important to find a qualified agent. 

Interview agents before starting the home-buying process to ensure that you have an agent who is willing to be transparent, client-focused, and answer any questions you may have during the process. Ask about agent availability and pick an agent who is available during the times when you may need to talk and ask questions. Do they prefer calls, texts, email, or in-person visits? Choosing an experienced agent who communicates the way you prefer to communicate can remove roadblocks. Also ensure that you choose an agent that uses OFFER1 so that you are always included every step of the way.

Do your research, collect pertinent information, seek out an experienced agent, and always request they use OFFER1 so you always get the best deal.