Don't Trust the Seller's Agent? Your Instincts May Just Be Right
- Written by NewsServices.com
Buying a property is likely to be one of the biggest purchases you make in your lifetime. Regardless of whether you are a first time home buyer or a seasoned property investor, your new property probably represents a large investment in time and money.
That’s why it is important that you do your due diligence prior to making an offer, including assessing whether the seller’s agent is acting appropriately and ethically.
If you spot any red flags, take the time to look into them properly so that you avoid costly mistakes.
The seller’s agent: What to look out for
There are a number of things you should check prior to dealing with a seller’s agent. Use these to familiarise yourself with who you are dealing with when it comes to your investment. Doing so can help you avoid pitfalls previous buyers have suffered, while in some instances, you may choose not to buy through the agent at all.
Bad reviews
Consulting and leaving reviews are an important part of many purchasing journeys for everything from toasters to properties.
A large number of 1 and 2 star reviews can show that in some cases, people have had very negative experiences with the agent, even if others had great outcomes.
A low overall rating may suggest that on average, most people are not overly happy with their experience.
Remember that while some people enjoy reviewing everything they buy, in general, people only leave reviews if they’ve had a particularly good or bad experience (or the company asks them to review their experience).
Look for trends.
Court actions
Unsurprisingly, court actions – particularly multiple incidents – are a very bad sign. Proceed with caution in this instance!
The Pest and Building Inspection
An offer, made subject to a pest and building inspection you’re happy with, can help you get a clear picture of what exactly you’re buying. It is a big red flag if the real estate agent suggests you use their building and pest inspector, or worse, SKIP the inspection.
An independent pest and building inspection is an absolutely crucial step in the due diligence process. If the seller’s real estate agent recommends an inspector, you should remember the agent is being paid by the seller. The agent has a vested interest in selling the property, and you will not know if an unscrupulous agent has an unofficial “arrangement” in place between themselves and the inspector recommended by them.
With the onset of the crazy COVID property panic, many agents took advantage of the abundance of buyers desperate to buy, even sight unseen. Offers were routinely rejected when buyers made them subject to an inspection. This unfair practice is now having significant financial consequences for buyers who skipped inspections and legal repercussions for unethical agents.
By engaging an independent building inspector, you are protecting your biggest investment!
