The Worst Advice - MSN Article Review

MSN has an article up today in their real estate section titled "House Hunting? Time for Homebuying Negotiation Bootcamp." All I can say is Wow! Don't hire a buyers agent and if you do don't tell them your max? Really? I did not get into real estate to screw over my clients! I have plenty of clients tell me, "Hey I qualified for $180,000 but I really don't want to spend more than $130,000." It is my job as their agent to provide them with excellent service and heed their wishes. I'm also not a pushy agent. There is a certain sparkle in someones eyes when they have found the right home. An agent just knows when it's the right one. Even then I don't push my clients into the home just to make the sale.


So lets pick this apart!!

1) I agree & disagree - gather as much information as you can. But then again that is what I do. Any good agent is going to do this. I do NOT agree with this statement, "One of homebuyers' biggest mistakes is that "(t)hey went to talk with their friendly real-estate agent much too early - and much too openly for their own good." There is nothing at all wrong with being open with your designated agent! The more information you give your agent the quicker they will find you a home and the more likely you will get exactly what you are looking for!

2) This entire paragraph is garbage. If you cannot be honest with the agent you have then it is time to get a new agent! Your agent has a responsibility to you. And it is NOT to increase their commission. If you feel your agent is only out for money, then fire them.

3) If you have an agent there will NEVER be a need to deal with the sellers agent unless you decide to use the seller's agent as your agent. Even then the agent has a responsibility to you as well as the seller. It's called Dual Agency. In Dual Agency the agent has promised a duty of confidentiality, loyalty and full disclosure to both parties simultaneously.

4) "One of the advantages of dealing with a seller's agent is that a seller's agent often discloses more" I disagree. There are so many repercussions for the agent if this happens. The agent has a duty confidentiality to their client. Informing someone that their client is going through a divorce is a breach unless the client gave the agent the permission to disclose this fact.

5) You run the risk of losing the home. If you are ok with this then this approach can be used. I don't "urge" any of my clients into making an offer. I suggest to them if they want the house they would want to make an offer. The last thing you want is to get into a bidding war.

6) This one can be dangerous. If you offer too low, the seller coud be insulted reject every offer sent them after that.

7) "For all you know, I might have deliberately hiked up my asking price to well in excess of what my home is worth"Well...if that's the case then it will come out when an appraisal is done. If you are using an agent then the agent should already know about what the home is worth before an offer is EVER put in.

I'm skipping the last one because this has been long enough!

What it boils down to is, get a good agent. If you are not comfortable enough to tell your agent any of the above then it is time for a new one.