Do you know the bad practices of the real estate sector?
If you're just starting out in real estate, don't expect to become an expert overnight. Yes, it is true that you can make money buying and selling properties. However, it takes knowledge, determination, and different skills to be successful. It is also very important to know some of the bad practices that others commit when they start investing in a property. Knowing them will help you avoid misunderstandings and earn the trust and respect of your client and colleagues.
Let's start by pointing out a first point that for many is considered a bad practice in the real estate sector: misleading advertising. Many real estate agencies tend to list properties without including the professional fees that correspond to the seller, hooking potential clients with misleading advertising. This is clearly a bad practice that has a negative impact on the industry.
Another bad practice would be when an agent or collaborator tries to negotiate behind the back of other colleagues with an owner who is not managing his property exclusively. This practice undermines the trust that should exist among employees in the sector. It should be noted that if an agent is exclusively commissioned, they must include in the sale a fee appropriate to the work they are doing.
Remember that there are three important aspects that professionals in the real estate sector must always keep in mind. First, the fees must be fair and commensurate with the service that is being offered. For example, there are often people who charge 5% of the total cost without doing anything, while there are others who charge 6% doing much of the work of the sale. As professionals in the sector, we must compete to offer the best service, not to obtain the highest profit. This pushes us to improve and to be better professionals in the sector.
Beware of scams
On the other hand, as buyers, you have to be very careful when an agency asks for a fee for the purchase of a property that we want to sell. For example, let's remember that in Tenerife the fee is paid by the seller. We must also be careful when this fee is asked to be paid in cash. If this is the case, it could be a scam.
Sometimes it can also happen that an agency ends up signing a price recognition with the seller that it does not respect at the time of sale, either because it published the property with a value above the agreed value. This is clearly with the purpose of charging a higher fee than that which corresponds.
Transparency and honesty
This type of action undoubtedly not only hurts the seller, who will charge less than his share; It also hurts the entire real estate sector, since a property is published above its real price. To avoid this type of bad practice, we must place in the exclusivity contract or for the sake of it very clearly the professional fee that corresponds to the seller. Remember that we must be transparent and honest when managing any sale.