Real Estate Agents, Realtors, and Salesmen
(Page 4 of 8)
May/June 1974
by Les Scher
Since most sellers figure the price of the commission into their asking price in order to pass the expense on to the buyer, if you do not buy through an agent you can use that fact when bargaining to get the price reduced. If a broker shows you the land and then you go and deal directly with the seller, the broker might claim he is responsible for making the sale and may ask for a commission. However, a broker is not usually given credit for a sale unless he gets the buyer to sign the Contract of Sale or give a deposit.
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Many sellers of rural land, particularly if it is underdeveloped or used only as a second home, will not live in the area. But you can identify the parcel on a map and go to the Tax Assessor's office to obtain the owner's name and address.
*I will refer to the owner of land as the seller and the person who sells his land for him as the broker or real estate agent. It is implied that the "agent " could be a realtor or a salesman.
A REAL ESTATE AGENT WILL TRY TO SELL ANYTHING WHILE PROMISING NOTHING
An agent makes money only if he sells some property, and competition for listings in rural areas is extremely tough. Most real estate agents will take any listing they can get, regardless of the condition of the property. It might be lacking in adequate water, legal access rights, well-drained soil or other features of good land, but that won't stop an agent from taking the listing. He has nothing to lose by trying to sell such land. Eventually someone will buy it.
The agent is not going to mention the bad points of a piece of property. Only by asking the right questions and demanding specific answers do you stand any chance of learning the true facts. Don't be satisfied with equivocal statements, such as "I think so," "I don't think there's been a problem in the past," or "Nobody can make a guarantee about that in this area." This type of statement is meaningless. The ancient rule of caveat emptor (let the buyer beware) applies: It is up to you to clarify all the facts of the situation. By giving an equivocal answer to a question, the agent is not committing himself to anything. Even if he makes a definite statement, unless you get it in writing, it is worthless. You must receive more than equivocal, worthless statements when preparing to lay down thousands of dollars.
WORK OUT EVERYTHING BEFORE THE DEAL IS CLOSED
Never buy land on the agent's promise or assurance that a problem can be worked out after the deal is closed. For example, if you are supposed to share a well with adjoining landowners but no agreement has been drawn up as to what the arrangement will be, the agent might tell you that your neighbors are great people and that you will have no problem working out an arrangement after you buy the land. This is a common and dangerous sales hustling technique. Once you pay your money and take title, the agent is out of the picture. If your neighbors don't turn out to be so nice, you can be in real trouble. Don't assume the agent is going to help you with problems once he gets his commission. If he can't arrange all the details in writing before you buy the land, he certainly won't do so afterwards.
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