Selling - Ten Things Your Real Estate Agent Won't Say

1. "I'm throwing a party in your open house."

One of the first things your real estate agent will suggest when you put your home on the market is hosting an open house, so potential buyers can casually check out your property on a weekend afternoon. Open houses are not the best way to find a buyer according to a National Association of Realtors study that found their success rate is a mere 2%.

Why have an open house? So you real estate agent can gain new clients. The open house is important to your broker because it provides him or her with a database of clients.

Some real estate agents even disagree with the concept of an open house, preferring to match clients with appropriate buyers. At open houses, you get all kinds of people. Some are considering selling their own places and others are just browsing. All are perfect pickings for a broker looking to grow his or her business. The broker devotes a couple hours of a weekend and expects returns.

2. "My fees are not engraved in stone."

Brokers like to make it sound as if their fees not negotiable, but that's not the case. In a brisk market, when brokers fiercely compete for properties they can unload fast, many will lower their fees. One broker in the South says he lowered his fee by a full percentage point because of high demand for good properties and he needed leverage. Sellers should definitely shop around for broker's fees. Negotiate. Ask for a discount when selling one place and buying another. If you're in a particularly desirable neighborhood with a house that will be a hot item and draw a lot of traffic for an open house, use that to your advantage. An agent will use the flow of people to get more customers. It never hurts to ask, some will consider lowering the commission if you make a request.

3. "Several people have made offers on your home."

Think you've had no offers? Maybe you've had a few you don't know about. The broker you hire to sell your home is legally obligated inform you of offers on your home.

Unfortunately, some don't. Perhaps he thinks the offer is insultingly low but more likely, the broker is trying to get a higher price for his own purposes and holding out for a larger commission. Or maybe your broker is waiting for a co-agent to bring one of his other clients to make an offer so he can keep the full 6% to himself.

Insist your broker inform you of all offers. The decision is yours to make and should not be left to your real estate agent. Be adamant that the promise to disclose all offers be present on the listing agreement drawn up when you hire the broker.

4. "I repeat everything you say."

You have found your dream house and call the broker listed on the For Sale sign. That's how a lot of buyers find their real estate agents. The broker will, in turn, happily show other houses, asking about your needs, laughing at your jokes. It's easy to get excited and forget whom you're dealing with: someone else's agent. Brokers are duty-bound to provide their seller's information that can help them get the best prices for their home. If you tell the broker that you're willing to pay $300,000 but want to offer $250,000, they will pass that on to the seller. They have to.

Your real estate agent may suggest you get pre-approved for a loan. Your loan approval will tell a broker whether a buyer can afford a $300,000 house instead of the $200,000 home they are looking to purchase. When somebody asks for a pre-approval find out whom they're representing. If they represent someone who is selling their home - or someone in their brokerage does - they shouldn't have it. A broker cannot be impartial when it comes to making money.

5. " Whose side am I on?"

The past decade has brought about an explosion of the buyer broker, agents who work strictly in the buyer's interest. Negotiating for a fair price on a home and helping a buyer avoid pitfalls along the way. But does it always unfold so nicely? No. It isn't always true that buyer brokers are less commission-hungry. Many buyer agents are just that. They get about 3% of the sale, which is the same amount any broker typically earns. Buyer brokers are focused on closing the sale and getting the commission, so it's often in their best interest to see you pay as high a price as possible.

Here's the bad news, some brokers who call themselves buyer advocates work for a brokerage that also represent sellers. If an agent sells an in-house listing they can qualify for a bonus. Does that sound impartial? Find a broker who has no such conflicts of interest, who pledges to help you get the best deal possible and has no ties to sellers' agent. You may be able to find an agent that works on a fee structure rather than on commission.

6. "I don't know anything about zoning."

Real estate agents love to encourage your big ideas, like removing trees to enhance a view, or even squeezing a rental unit out of a roomy garage. These projects are meant to happen once the deal is done and your broker is out of the picture.

For example, one buyer bought a dilapidated house with a beautiful piece of property on a marshland. His broker told him that he could fix the house up however he wanted. So he put up a $10,000 workshop and pulled down trees. He also filled in some of the marshland. Now the town is making him put things back because of environmental zoning regulations. Remember, check with your local zoning commission before you buy into your broker's creative thinking.

7. " I won't let the inspection kill the deal."

If a broker is selling a house, he is trying to sell the house. He will tell you all about the new kitchen, the big closets, the heated garage. He will never mention the termites or flood damage. You should worry about the features you broker keeps quiet about.

You rely on the home inspector, who thoroughly checks the house before you close the sale to notice those things. And he will - if he's an impartial party. Realtors provide potential homebuyers with recommended home inspectors. That list will most likely include inspectors who will rubber-stamp the house in return for repeat business. Many inspectors who work outside those lists butt head with the real estate brokers. Hire your own inspector. Make sure you get an objective inspection.

8. "I don't have my law degree but watch me act like I do."

Many brokers will add clauses to your contracts and agreements that are outside regulations. Most states strictly regulate the contracts used in real estate transactions, requiring the use of boilerplate agreements that offer little room for creativity. Real estate agents frequently cross the line by adding amendments and clauses. Their additions can have consequences, but they want to keep the sale going.

For example, it's fairly common for a house to close on one day but possession doesn't happen until a later date, in which case the buyer rents the house back to the seller for that period of time. If this agreement clause is worded improperly, the buyer could end up liable for damage done by your "rental tenant." Other examples include purchases of non-real-estate items and owner carryback. Getting an attorney is worth the legal fees. Have you contract reviewed before you sign.

9. "My web site is a waste of time."

The National Association of Realtors states that over 50% of house hunters look on the web. Sellers might assume that a broker with a web site is tech savvy and can make a sale happen. But you need to look beyond a well-designed home page to make sure your agent has good content.

Some agents post houses that sold long ago because they are attractive homes that bring people in. It's a bait-and-switch-style ploy. This can upset people when they find out that the property's not really available. A broker that advertises properties that are already sold doesn't have enough inventory to keep his roster full.

You should also make sure that a site is easy to navigate. Test out search engines and see if you can easily find your broker. One of the important aspects of a broker's site is the local information - schools, recreation facilities, commuting options, maps - which attracts people who are thinking of moving to the community.

10. "You can sell you house on your own."

Brokers like to create an air of mystery about selling homes, insisting that the process is complicated and best left to professionals. But almost 20-30% of homeowners sell their houses themselves each year. The key is a properly priced and advertised home that will sell itself. Sellers should plant a yard sign and post online ads with local sites. After all, broker commissions can get in the way when it comes to the inevitable negotiations between buyers and sellers. Usually, the quibble occurs over a 5-10% difference, which is the broker's cut of the sale price anyway.

The most common mistake among self-sellers is the price. Don't over price your home and be careful not to ask to little. Consider hiring an appraiser to help you set a price. Also take into account the condition of the real estate market. With low interest rates the asking price can be 10-15% above the appraisal. In a weak market, price at or below the appraisal.