Think it can’t happen to you?
Every day, bright men and women, young and old, who do not understand or question various real estate documents, spend hundreds of thousands of dollars buying or selling property. They do it without ever consulting someone who is unbiased, and actually knows real estate.
3 Things You Should Know About Real Estate Agents
The first thing to know is that real estate licenses are not that hard to get. It only takes a few hours to take the course and pass the test, and suddenly you’re a real estate agent. About 90% of first-time real estate licenses are not even renewed.
The second thing to know is that real estate transactions can be very complicated, and too many agents don’t understand, or don’t pay attention, to much of anything beyond how to get you to the closing. Most lawyers don’t involve themselves in real estate, because of the complexity. Real estate classes in law school are not required, so not all lawyers have the background to handle these matters.
The third thing to know is that a real estate agent’s livelihood depends on making the sale. Your agent may or may not have your best interests in mind. They do not earn a penny until the sale is closed, and the money has changed hands. An agent earns nothing by pointing out problems to you that would make the sale not happen.
Prevention Is Cheaper Than Cure
The most expensive investment most Americans make is their home. The risk is high, and if you discover problems after the sale, the cost to resolve them is high, too. Sometimes, a reasonable resolution does not even exist. Fortunately, the cost is low to prevent a problem.
Why does it happen?
Some people set out to offload a bad investment onto an unsuspecting buyer, but that is not usually the case. Bad things happen because of lack of knowledge of the law, and the way incentives are structured to close a sale as fast as possible.
Everyone involved gets paid based on the sale going through. They are not neutral or unbiased, they want you to buy that house so they get commission. They don’t represent you, or the seller. They represent the deal, and making it happen. The more money you pay and the faster you sign, the more money the agent makes.
Is the deck stacked against the buyer?
You couldn’t be blamed for thinking so. The sales agreement you sign says that you release the seller and all parties involved if there is something wrong with the house. You’re not supposed to rely on what they tell you. The obligation is on you to inspect, and discover any problems.
You hire an inspector, and you find out inspectors can only be liable up to the amount you paid for the inspection ($400 or so); even if it was their negligence that missed a big problem, costing you thousands of dollars. You have no way to recover against the negligent inspector.
What should I do?
Whether you are buying or selling, Lion Legal offers down-to-earth, realistic, money-saving advice and counsel. When thousands of dollars are on the table, don’t just rely on advice from your agent. We sometimes joke that if you’re not sure what to do, do the opposite of what someone getting paid a commission tells you to do. That’s not always true, of course, but if ever the phrase “trust but verify” made sense, it’s how you should proceed in a real estate transaction.
We Can Help
Our attorneys are experts, and are here for you with straight talk, predictable cost, and superior services. We promise to tell you what the most likely outcome is up front, and to be open and transparent in our communications with you until your case is resolved.
Our approach to practicing law is revolutionizing the way law firms deliver legal services. Case evaluations are completely free. Call Lion Legal today at (501) 227-7627 or Email Us to set up a free consultation.