How to choose a real estate agency and not give your money to scammers

2024 Author: Malcolm Clapton | [email protected]. Last modified: 2023-12-17 03:44

What does a real estate agency do, what it should be to inspire your trust, and what tricks you shouldn't bite - Lifehacker will guide you through the wilds of the real estate market.

Sooner or later, each of us is faced with the housing issue: it is necessary either to remove something, or to sell something, or to buy something. You can rely on yourself in such matters, or you can turn to professionals. Today we will tell you how to choose a real estate agency that will not be afraid to entrust your time and money.

What is the agency doing at all?

• Saves you time. It doesn't matter what exactly you want - buy or sell, rent or rent - the help of a competent specialist is necessary first of all in order to quickly and correctly do what you do not know. The real estate market and the sphere of legislation are broad topics for study, and a person who has been engaged in this for a long time and seriously knows all the subtleties and pitfalls. And he will hang on your phone for hours instead of you and look for potential options.
• Helps to determine the price. During periods of financial instability, when the value of real estate rises and falls, a specialist will say how much this or that property may actually be worth. In addition, a good real estate agent will bargain to a price you can afford when possible.
• Solves legal issues. And this is not only drawing up a sale and purchase agreement (or lease), but also checking the authenticity of the documents of the second party to the transaction, so that in the future there will be no problems with residence or ownership.

Of course, this is not free, the agency's services will cost money: either a clearly defined amount, or a commission. And in order not to spend too much on the services of an unqualified agency, you need to know by what criteria to look for a master of his craft.

How to choose a reliable real estate agency?

It doesn't matter how you found out about the agency: your acquaintances told, saw an advertisement or received a flyer. Your best bet is to test it yourself.

1. Google the name

This simple procedure will save you from many unpleasant surprises. This is what a simple search query will give us.

• Agency website. If this is a colorful and bright one-page landing page with obvious "enticements" - this is a reason not to be tempted, but to be wary. If this is a site that gives the impression of calmness and confidence, especially if the domain name was not registered yesterday (you can check it here), then there are grounds for trust. Just do not blindly believe the reviews from the agency's own website: they can be edited by its own employees.
• Reviews on independent sites. It is not always possible to find reviews about good work, but they will certainly be about bad ones. If these are scammers and they have already managed to throw someone for money, you will see information about this on the Web.
• Legal information. TIN, OGRN, information about an individual entrepreneur on the first or second page of the search engine will surely be found. Moreover, transactions with real estate for a fee or on a contractual basis (OKVED code - 68.3, including with any numbers in the continuation) should be designated as the main type of economic activity.

According to the legislation of the Russian Federation, organizations and entrepreneurs engaged in such transactions with real estate must be registered with Rosfinmonitoring. This can be checked by knowing the TIN number.

2. Meet in person

After you have selected a couple of trustworthy options, it's time to pick up the phone and make an appointment.

• Assessing competence. A competent specialist is visible by conversation, behavior and knowledge of the matter. Feel free to ask questions to the point: how long will the deal take? How long does it take to register a contract? What can you expect with that kind of money? A competent agent will not get lost and will clarify incomprehensible points.
• We estimate the office. It is best to make an appointment at the agency's office. Find out how long they have been renting this room (so as not to get to a one-day firm). Take a closer look at the work of agents, consider letters and certificates, if there are any on the walls.
• We estimate the volume of services. Find out exactly what the agency will take to find properties or buyers. Exactly how much advertising will be given, how views will be organized. If you are offered an unexpectedly large amount for a suspiciously low cost, this is a reason to be wary rather than happy.

3. We conclude an agreement

Many agencies will not start working with you without drawing up an appropriate document. It can be called in different ways: a service agreement, a commission agreement, an exclusive agreement.

Why is it profitable for the agency to conclude an agreement with you?

• If you sell or rent real estate, most likely the contract will mention that only this company will offer it on the market.
• There will be guarantees in case you suddenly change your mind about making a deal, and the agency has already suffered losses.
• There are guarantees of payment for the work done by the agency.

Why is it beneficial to conclude an agreement for you

• The scope of services provided by the agency is stipulated. You will clearly know what you can demand for the money paid.
• Chances are, the agency will be more interested in working with you. Especially if it is an exclusive contract and payment for services is guaranteed.
• The contract provides for your guarantees: what will happen if the deal breaks down due to an agency error (for example, in the documents).

When it is not profitable for you to conclude a contract

You want the agency to find suitable options for you for free, and then you are going to conduct a deal bypassing this company

In any case, when signing a document, read it carefully, ask if you do not understand something. If any clause of the contract does not suit you, ask the agency to make changes. You can seek advice from a disinterested lawyer.

What tricks shouldn't you fall for?

Even if the agency at first glance inspires confidence in you, it is important to keep in mind the common deception schemes used by scammers.

• Payment for side services. If you are required to pay an additional fee for inspecting the apartment, making copies of documents or scanning them, it is better not to contact such a company. Self-respecting professionals do not charge money for these services.
• Obtaining a general power of attorney. Agencies often ask the owners for a power of attorney in order to draw up the necessary documents. This is good, and you don't have to deal with bureaucratic red tape. But not in the case when a general power of attorney is required from you. Make sure that this document does not contain any lines about "all transactions with real estate" or about its purchase and sale.
• Provision of "information services". An old but still working method. First, you will be glad that the agency's services cost a fixed (and very small) amount, and then it turns out that for this money you will be provided with "information services": they will give you a list of suitable real estate objects. If that's what you want, go for it. If you want a full-fledged job, read the contract carefully before giving money.
• Fraud with real estate documents. There can be many options: the sale of apartments of the deceased, citizens in prison, and so on. To protect yourself from this, carefully check the documents confirming ownership of any kind of encumbrance.

Summing up

Whether to contact a real estate agency or to act independently is a personal matter for everyone. But, as with any legally significant actions, it is important to remember the following:

• Read any documents carefully, especially those you intend to sign.
• Trust but verify! If you are in doubt about anything, double-check the information.
• Do not neglect the help of specialists: qualified lawyers or government agencies.