Buying or selling real estate is a complicated business. Not only does one need good contacts to land a fast and profitable deal, but there are other legal documents to be taken care of as well. The layman needs the assistance of a real estate broker in all these matters.
The broker is mediating between the buyer and the seller; whoever engages his services first is the main client. On a single property, he usually has several clients that he or she deals with for the other side of the deal and must choose the best offer from the main client’s perspective. One can win the favor of the broker by paying a decent amount as earnest money. This is the initial payment to the broker after the main client has approved the offer; it is basically the broker’s profit and accordingly gets his attention. The person has to safeguard their money as well, so a promissory note can be used instead; either way, Your Personal Financial Mentor stresses that this payment must be made only after receiving a verified approval from the main client for the real estate deal to progress.
The other factor which brokers check while evaluating property deals is the time to close the deal. A client who can make a quick decision is preferred, sometimes even over another client who is willing to pay more but is not able to decide on that particular real estate quickly enough. It is a classic case of a bird in hand being worth two in the bush.
One should keep in mind that the broker is a busy person and time is money to him. He will not entertain unique type of offers that are against the set pattern. A genuinely interested party who has a good creative idea for a real estate deal should meet with the broker in person and explain the deal clearly, enthusiastically and to the point. If the broker allows a face to face meeting with both parties in his presence, this should be arranged to explain the real estate offer directly to the main client; the broker may not be able to convey the idea correctly and with the same conviction as the originator of the idea.
It is uncommon, but not impossible, to come across real estate brokers who are frauds and cheats. There is no harm for the clients to check out the property themselves and ask around to verify its value.
Categories: Real Estate