What not tell a real estate agent. There actually a tonne of things you shouldn’t say, but today we are going to look at 3 words that can cost you thousands.
Never tell a real estate agent these 3 words…
If you tell an agent you’re a ‘first home buyer’ you’re in trouble. You may as well put a neon sign over your head saying ‘I’m inexperienced, take advantage of me’.
It’s not because real estate agents are bad people, it’s their job to make you ‘pay’ and the more you pay the better for them and their client.
Like most Australians, you likely share the opinion that buying your first home is a right of passage. You’ve dreamed of this moment, and you’re picturing it to be an exciting experience.
But, for many, that’s not often the case.
Buying your first home is a huge decision.
For most home buyers there are 10 crucial steps you need to go through to make it a reality. Miss a few of those necessary steps and you’re in trouble. You might get knocked back for finance at the beginning. Or pay too much for a property, or even buy something you later regret.
It can be a stressful time for many first home buyers. that’s not surprising given it’s likely to be the most expensive purchase you’ve ever made. Most people expect you to wing it and work out what you should and shouldn’t do on your own.
It’s no wonder many first time buyers stop before they even get started.
It’s a lot to take in when you break it down.
And if you’re one of the lucky ones who’ve managed to get approval for a home loan, and find a place you like…
You then have to navigate your way through negotiating with a savvy real estate agent. Someone who does this for a living! Who usually has many years of experience and is trained in what to say and do to get you to pay more than you need to.
It doesn’t seem fair. Does it?
So how can you turn the tables? How can you give yourself the best chance of getting the best deal?
Well, it’s pretty simple.
So what not to tell an agent?
You need to make sure these three words never pass your lips.
‘First Home Buyer’.
While those three words seem innocent. They have the potential to cost you thousands of dollars!
And we get why people do it.
They’re excited about buying their first home, and they want to share the news with everyone. And that’s OK. Don’t tell the agent.
We find most buyers tell agents they’re a ‘first home buyer’ as they’re looking for someone to help and guide them.
And while we’re big believers in seeking out help and support when buying your first home. You shouldn’t be looking to the selling agent for that kind of advice.
A selling agent is always working for the owner, they’re the person who is paying them. They aren’t legally allowed to act in your best interest.
You won’t need to rely on any selling agent to help you if you arm yourself with the right help.
Daniel Baxter Co-Founder of the First Home Buyer Buddy says. ‘It’s easy for first home buyers to be taken advantage of by smart and skilled agents.’ Becuase they generally have to go it alone and hope for the best. That’s why we created the First Home Buyer Buddy system to make sure that doesn’t happen.”
Simple things like saying a few words
If you tell an agent you’re a ‘First Home Buyer’ you’re letting them know that you have no real idea what you’re doing.
But you’ve never done this before so you can’t be expected to?
Agents aren’t bad people, but it’s important to remember that like most human beings they will seek out the path of least resistance. And it’s pretty rare for an agent to get much pushback from a first home buyer.
If they have that kind of information before they start negotiating with you, you’re in trouble. You’ve given them the upper hand, to begin with, and this is where they can get you to spend more money than you need to.
And, we hate to keep repeating ourselves, but it’s important to remind you again that the selling agent is working for the other person. That’s the owner! It’s not their job to help you.
It’s the agent’s job to make sure they get the highest price for their client. That means they need to get you to pay the most you can afford to pay and push you to your very limit.
So keep those three words ‘first home buyer’ to yourself when you start negotiations.
If you do that then you’re able to remove one weapon from an agents arsenal. They can’t then use the same negotiation or pressure tactics they usually adopt. When dealing with a first home buyer common ones are: playing on your emotions or your lack of knowledge about the buying process. Which will mean you have a much better chance of buying the property you like for a fair market price.
And once your offer has been accepted and the deal’s done. Feel free to share that information with the agent. Just don’t do it beforehand. To ensure you don’t make any costly negotiation mistakes when you deal with an agent, be sure to check out the First Home Buyer Buddy.