I've been looking for the perfect home for a while.But after a few years of waiting, I finally found it.I knew I wanted a two-bedroom, two-bathroom home, with an attached garage, that was located near the river.I also knew I needed a backyard.So I put down my deposit, and in December of 2015, I walked into the Realtor's office in the River Oaks section of San Francisco.He was so happy to see me.I ...
Real estate brokers have a long-standing habit of making up stories about the properties they want to buy, but few of them are willing to explain why they’re telling the truth.
That’s the big takeaway from a new study by RealClearMarkets, a real estate research firm.
The firm analyzed more than 300 data sets on the properties that agents are interested in purchasing.
The real estate industry has a long history of deceiving consumers into thinking they have property they don’t have.
And there are many, many more examples of the industry making false claims to make itself look more attractive to buyers.
In the case of home-buying, this is often done to sell a property to someone who’s looking to buy it for less money.
But it can also happen to anyone who wants to get a home that is actually sold for less than it’s worth.
«Agents want to sell homes to the highest bidder because they are making a profit,» said Matt Johnson, chief research officer of RealClearmarks.
«Agents are also often seeking a home to use for vacation or to entertain family and friends.»
Johnson’s research shows that, in fact, a good portion of the homes that are being sold are not sold for the fair market value.
The average price of a home sold to an agent is $4.6 million, according to the study.
In addition, agents are buying homes at inflated prices because they don´t know whether the home is worth $5 million or $10 million, or even $15 million.
For the real estate agents surveyed, there is an expectation that their agents will sell them homes at a price that’s below the average home sale price in their market.
And, while this can sometimes happen, the study shows that most of the time, agents aren’t buying homes for a fair market price.
«It can be very difficult to tell when you’re getting a deal,» said Johnson.
«Some agents may be interested in a particular property but are not in a position to negotiate or to understand the property.»
The researchers found that agents don’t always accurately understand the properties in their portfolio, and that they often make false promises about the homes they’re buying.
The agents also may be offering agents less than they should.
Johnson says that many of the misrepresentations that agents make in the real-estate industry are common in the mortgage market.
When an agent offers a mortgage that they donít have the money to pay back on, that agent could be making a false promise to a mortgage lender.
When a mortgage isn’t good, an agent could simply be offering to pay the mortgage off on the spot.
«In our research, we found that an agent may tell a client that the property is worth less than the loan amount, but the property does not exist,» Johnson said.
«When an agent makes a false or misleading statement, it can negatively impact a client’s ability to buy a home.»
Johnson said the industry should be more transparent about its real estate sales and buy-to-let sales to prevent agents from making false promises to buyers and sellers.
«There is an issue with the way real estate is being sold in the United States today,» he said.
The real-hotels real estate brokers and agents are selling the homes are selling for in a market that is already under-inflated.
And the market is under-priced compared to what agents are expecting to sell it for, and agents arenít making enough money to make up the difference.
RealClearMarkes says that while the market for homes is still undervalued, agents need to be more open about this to protect their clients.
«Many of the realtors that are making their money selling homes in this market doníve actually had to sell their homes,» Johnson told The Hill.
«Theyíre making more money than they paid for the property.»
The fact is, agents and brokers need to know how they can best tell consumers that a home is actually in a better market than they thought it was, that the home isn’t being sold at a high price, and is in a much better condition,» he added.
The research comes as the real world of real estate continues to evolve.
It shows that it is becoming more difficult for agents and homeowners to accurately understand where they are in the market, Johnson said, as the market becomes more diverse and less familiar to the average consumer.
Johnson said that while agents are getting more creative with the types of homes they sell, he thinks they should also start being more upfront with buyers.»
But, we also want to make sure that the buyer understands that, when they’re purchasing a home, they are purchasing an asset that has not been proven to be a safe investment.»