" /> Things the Real Estate Industry Does Not Want You to Know


The Real Estate industry is based on the Latin term “CAVEAT EMPTOR”. “Let the buyer beware”. Research the term “Caveat Emptor in Real Estate”. In simple terms, it implies that you the Buyer must do your own “Due Diligence” and must do everything in the Real Estate transaction to protect your interest. You must do your own research. Verify facts and get your own Mortgage, Homeowner Insurance, Title Insurance, Termite Inspection, and Home inspector.

1) NEVER, NEVER, NEVER buy the house through the Real Estate Agent who has a sign in the front yard or has listed the property. That Agent has already signed a contract to work for the Seller. The best you will get in this transaction is a Dual Agent. Can you equally serve two masters (Seller and Buyer) at the same time? Should a husband and wife use the same Attorney in a Divorce? No. A Dual Agent is the same thing. Buy the house from another Real Estate Agent and Agency. Remember a Dual Agent gets twice the commission. A $150,000.00 house with 6% commission is $9,000.00.

2) NEVER, NEVER buy the house from the Real Estate Agency that has the property listed. Real Estate Agencies try to push their own Listings to get twice the commission. Always try to use separate Real Estate companies when buying the house. If you have a major issue with the house after closing an Attorney will tell you that the more Agencies you can sue the better chances you might have in winning your case.

3) Have you ever noticed how large Real Estate Agencies have Mortgage and Closing Attorney’s in the same building? They may be co-mingled. These relationships are not in your best interest, it is for their financial gain. Due your own Due Diligence. A 1/4 point difference in interest rate can be thousands of dollars over a thirty-year mortgage.

4) NEVER use the Home inspector that your Real Estate Agent recommends unless you have determined that the Home Inspector is the very best. Do you want to put one of the largest and most expensive purchases of your life in the hands of someone working for a commission? An important fact to bear in mind is that the house is only warranted on the day of the closing. After closing if there is a problem, it is on you to make the needed repairs. You bought it.

MYTH. The Veterans Administration (VA) does not inspect houses. No one from the VA ever sees the house you are purchasing. The VA relies on approved appraisers who work for the interest of the Mortgage Company.

MYTH. Foreclosures are not always a great buy. First off Banks and Mortgage Companies do not sell houses to lose money. A $150,00.00 house selling for $90,000.00 usually requires $30,000.00 to $40,000.00 worth of repairs. Remember the Bank and Mortgage Company is not required to disclose to the Buyer any defects with the house.

Remember this. A $150,000.00 house at 6% commission is $9,000.00. How hard do you work for $9,000.00? The choice you make between Agents and Agencies can make the difference between a Home and a MONEY PIT.