By Miguel Fernandez
Desperate Agents Make You Lose Money
I always warn people about desperate agents and how they will never advise you properly at the time of selling or buying a house because they will do whatever it takes to close your transaction no matter what the costs are.
A desperate agent will convince you to pay more for a house than it deserves or to accept less than what your house is worth because his/her desperation will cloud their judgment and cause them to put their own interests before the interests and welfare of their clients. Desperate agents can also make you lose money without even getting a house in the end, as per the story below.
A few days ago, I learned about a case of a desperate agent who was hired by first time home buyers to help them to buy a house. This agent was not hired because she was honest, professional, or experienced; she was hired because she was so desperate to make a sale that she was willing to give the buyers a large part of her commission. This did not make the buyers suspicious and so they trusted her with their biggest investment.
Her clients told her that they needed financing and she referred them to another desperate mortgage agent to help. After many showings, the clients finally found a home they loved and ended up presenting an offer. With some negotiation, they were able to buy the house conditional on financing for five days.
As the fifth day approached, the real estate agent became desperate to waive the financing condition and firm up the transaction. Although the mortgage agent told her that everything was looking ok, he also told her that they did not have a solid commitment yet. Upon hearing this news, the real estate agent convinced her clients to waive the financing condition, instead of asking for an extension until they had a commitment from the bank.
Long story short, the mortgage agent could not secure the financing in time and since the condition had been waived, the buyers lost their hard-earned $20,000 deposit and their dream home. The worst part is, the buyers realized that they did not have financing until a few days before the closing date because their mortgage agent kept trying to get financing with different banks to save the deal, but he ultimately couldn’t.
Currently, the buyers’ $20,000 deposit is being used to pay off all of the expenses incurred by the sellers due to the breach to the contract from the buyers who couldn’t buy their house. Things are a mess for both parties, especially the buyers who are now taking their real estate agent and mortgage agent to court.
I don’t want this situation to happen to you or anyone else. Please hire your real estate agent wisely and remember; if you think that hiring a professional is expensive, wait until you hire an amateur.