How to know when it’s time to change your real estate agent

If You Are Selling or Buying a Property, This Is Worth Reading!

Data shows that in Israel, in recent years, more and more apartments are sold through agents. In the U.S., for example, 90% of sales are done via agents, where only the sellers pay the brokerage commission, at a higher rate than is common here. Corresponding to this sales trend, in recent years, many real estate agencies have improved the image previously associated with agents and now offer marketing and brokerage services for both property owners and buyers — an advanced, effective, and focused marketing system yields far better results compared to the private capabilities of buyers and sellers.

Make sure you are in the right and professional hands, and avoid working with agents who operate alone, without an organized system, a professional team, or a precise and broad marketing plan — this is where the difference lies between achieving good results and settling for disappointment and regret. When a seller posts a property ad on one of the online boards, it is a minimal action compared to a company that operates across all the important and relevant channels for selling a property — the exposure gap between these two cases can be hundreds of percent.

Not everyone is aware that brokerage work requires a license from the Ministry of Justice, granted only after training and a professional exam that agents must renew annually. Furthermore, it is a regulated profession by law, governed by clear and binding ethical rules.

The Advantages of Brokerage Services

A good agent enables their clients to access a much wider range of properties or buyers efficiently and quickly, filtering out unsuitable apartments and unserious interested parties. Most excellent agents cooperate with their colleagues, thereby significantly expanding the pool of potential buyers and concentrating the properties offered to the client into a single day of viewings. Additionally, the client’s rights are regulated in an official brokerage services form, which they have the right to demand signing with the agent.

Warning Signs of a Dishonest Agent

Unfortunately, there are agents who operate with crooked and unreliable methods, damaging the professional reputation of their honest colleagues. Here are some signs that may indicate you’ve fallen into the trap of a deceptive agent, and it’s better to look for another:

– Unlicensed Agent: It is important to know that an agent without a valid license is breaking the law and is not entitled to any commission. Licensed agents appear in lists published on the Ministry of Justice website and have completed regulated and supervised training.

– Agent Availability: If the agent you chose does not answer your calls, avoids reporting potential buyers’ impressions, or fails to bring enough buyers for viewings — it’s better to replace them.

– Professional Expertise: A professional and reliable agent will answer all your questions regarding real estate transactions and their complexities. If the agent avoids answering questions, gives incorrect information, or distorts facts, it’s highly advisable to find a better and more honest agent.

– Overly High Price Estimate for the Apartment: Agents who offer sellers prices higher than the true market value often do so through flattery and exaggeration. Another reason for an inflated price may be a lack of knowledge or unfamiliarity with the neighborhood.

– Agent Does Not Know the Apartment: A serious agent will visit the property and meet the owner alone before bringing potential buyers. The initial visit allows the agent to assess the property’s advantages and disadvantages and gather reliable physical and legal information to provide buyers with a comprehensive background.

– False Stories About Properties: An agent who provides information about a property that significantly differs from reality is dishonest, and it’s better to avoid using their services and turn to other agents. A serious agent may ask you many questions about your needs and wishes to find the best-matching property.

– Ads Marked as Commission-Free Properties: Another sneaky marketing trick is when an agent posts ads claiming properties are exempt from brokerage fees. When customers show interest, they are told that another buyer offered to pay commission to pressure them into paying and closing the deal.

– Advertising Properties That Are No Longer Relevant: Ads for properties that are no longer available or cheaper may be used by dishonest agents to lure buyers. Such an agent might explain that the apartment is in the final contract stage and then try to show you other apartments.

– Tactics to Lower the Seller’s Expectations: Some agents try to reduce the seller’s price demands by criticizing the property and inviting fake buyers who express disappointment and point out various “problems.”

– Exclusive Brokerage Agreement That Yields No Results: A reputable agent will work diligently and invest money and resources in marketing the property to avoid losing exclusivity. Marketing activities may include property signage, funding ads in daily or local newspapers, advertising in foreign languages for foreign buyers, preparing architectural presentations for those looking to renovate, inviting potential buyers for visits, and collaborating with other agents. If your agent is not doing enough to sell the property, it’s better not to renew the exclusivity agreement.

– Signing a Memorandum of Understanding (MOU): An agent who pressures you to sign an MOU under the pretext that it will help you secure the apartment or buyer may be setting a trap. Remember that an MOU has legal validity, which may obligate you to pay commission even if the real estate deal is not completed, and you could also be exposed to compensation payments if you decide to withdraw from the deal, as the MOU is legally considered a sales contract and must be reported to tax authorities.