Buying a Jersey Shore home. The dream of many. You saved for the day when you’ll start your search for that 2nd home you’ll live in full time… or maybe just during the summer.
Buying a vacation home in Ventnor, Margate or Longport. Could be an excellent investment. Plenty of upsides. But a few land mines too. You’ll need to avoid these common bug-a-boos. Here’s a few of them:
VIDEO: Pros & Cons of Dual Agent & Dual Agency.
At the top of our list…. is something called ‘dual agency’. This is where one real estate agent represents both the seller and buyer. An issue so controversial, the practice is banned in 8 states.
Watch video from Tony Moon, The Real Estate Heretic.
Dual Agency: Real Estate agent attempts to fully represent you, seller, and buyer, all at the same time. Sounds kinda insane, huh?
Does your Real Estate agent represent you exclusively, or do they represent the other party too? Are we oblivious to this amazing conflict of interest? Much too risky to have one agent represent both sides of a real estate transaction.
Like catnip for Real Estate folks. Lot’s of shoobie money out there.
Looking to buy a home? Find an agent that will act ONLY in your best interest. Not the seller’s. In this situation, your ‘buyers agent’ will help you search for ALL available properties ….. not just the properties they (or their broker’s office) has under a listings contract.
also known as ‘double-ending’ the deal
Top Tips for Downbeach Vacation Home Buyers and Sellers.
dual agency is illegal in 8 states
READ MORE > In Dual Agency, Clients Often Suffer.
When one person serves the buyer and seller, the conflict of interest is obvious. A dual agent has a strong incentive to favor the seller. The higher the sale price, the higher the commission.
In dual agency where one agent represents both sides of deal, you could end up paying two commissions….. to one agent.
AGENT IS TOO BUSY USING OLD TACTICS. So-called ‘successful’ agents are too busy to market your home properly. Many still employ tactics that are no longer effective. Newspaper readership is down well over 50% from just a few decades ago.
Over the years, open houses have also declined in effectiveness. Agent can still market themselves and attract more leads for other properties. Statistically, less than 2% of homes get sold via an open house.
INFLATED SALES PRICE TO WIN YOUR BUSINESS. When hiring a listing agent to sell your home, some agents will inflate the sales price in order to get your business ( the home for sale listing ).
Some real estate agents will “buy a listing” by suggesting a list price much higher than the market value.
It’s always best to price the property…. properly…. right out of the gate.
Too often, the seller’s agent will set an unrealistic sales price to impress the client and land the listing. This will only serve to have your property sit on the market for far too long. When the agent finally reduces price to more appropriate market price….the property may look suspect.
AGENT NOT SHOWING YOU ALL LISTINGS. EVEN FSBO’s. Steer the buying client in direction of preferred properties, or in-house properties. Avoiding competitors listings and FSBO, for sale by owner. THE STIFF ARM: Placing roadblock in front of competing agents. Agent purposely throttles offers. Filters out interested buyers. Ex: Seller’s agent would prefer to sell home at lower price to a buyer ‘in-house’. Good for the agent, bad for home seller.
AGENT GUARANTEE. Not happy with your agent? Home sitting on the market too long? A professional agent should release you from the listing agreement prior to contract expiration. Make sure to ask about it before you sign any agreements.
Survey: Americans without previous buying and selling experience (68%) and the majority of Americans with buying or selling experience (56%) didn’t know what a “typical” commission fee was.
Average real estate agent commission fee is typically between 5% and 6%. The higher the home price, the more likely an agent would take less in commission. Ex: for home $1mil+, some agents would gladly discount commissions to as low as 3-4%. But they’ll NEVER publicly disclose that.
Downbeach Real Estate in Ventnor, Margate and Longport.
Contrary to popular opinion, tourism is NOT the Jersey Shore’s top industry. Actually, it’s Real Estate and related services like construction, home upgrades, insurance, lawn care. Stuff like that.
Why the seashore exodus? More long-time homeowners cashing-in and moving to the mainland. The upside: tear downs and new home construction brings in more tax revenue. And with fewer full-time residents, running a shore town should get cheaper, right? Nope. That’s a story for another day.
Small fishing towns no more. Margate, Ventnor, the entire South Jersey coast is transforming into vacation towns. McMansions as far as the eye can see. And fewer, full-time residents. That means fewer voters. Schools merging. Sadly, a virtual ghost town during the winter.