The Free Home Tour Trap
Beware of “Free” Real Estate Tours - A Must-Know for Future Home Buyers
If you're planning to buy a home in late 2024 or 2025, there's a crucial new development you need to be aware of. As a mortgage lender licensed in 48 states, I spend my days talking to buyers and real estate agents.
The latest twist due to the National Association of Realtors (NAR) lawsuit is a new kind of trick you should watch out for.
The "Free" Tour Trap
Imagine this: I promise to take you to seven free restaurants. Excited, you accept. After visiting the restaurants, you find one that looks perfect. You’re thrilled until I tell you the meal costs $500 and you are paying. You’d feel tricked, right?
Or picture this: It's your wedding day. Your family and friends are there, the flowers are perfect, and you're about to marry the love of your life. Suddenly, they whip out a prenup. Again, you’d feel duped.
The Real Estate Twist
Recent changes point to a similar scenario in the real estate world. Big corporations are now offering "free" tours for home buyers. You sign up on their website, and an agent shows you homes for seven days without asking you to sign a buyer's agreement initially. It seems fantastic, right?
Wrong. Here's the catch: As soon as you find a home you love and want to make an offer, you must use their brokerage services and sign a buyer's agreement at that point. This is where they get you. Most people, already emotionally invested, won’t negotiate as well when they are desperate not to lose their dream home.
The Danger of Emotional Decisions
As a lender, I can't stress enough how emotion can cloud judgment. Buyers can go from being clear about their budget to wanting to stretch it the moment they find "the one." No matter how you slice it, emotions can lead to poor financial decisions.
Protect Yourself
- Get Pre-Approved: Before even beginning to look, get fully underwritten and understand your budget in detail.
- Research Agents: Look for reviews, check how many homes they have sold, and ensure they have experience.
- Read Agreements: Always go over the buyer's agreement with your agent before you fall in love with a home. Understand the terms and conditions and negotiate.
- Avoid Clickbait: Don't click on offers that seem too good to be true. They likely are.
Bottom Line:
Beware of deals that promise something "free" but come with hidden catches. The real estate market is full of emotional pitfalls. Make sure to plan and research. A thorough understanding and well-negotiated buyer's agreement will save you headaches and keep you within your financial comfort zone.
Stay informed and tread carefully. Buying a home is a major step, and it's crucial to navigate it wisely. Avoid getting lured into "free" offers that could cost you dearly in the end.
Jennifer Beeston
SVP Mortgage Lending @ Guaranteed Rate
Phone: 786-933-2077
About The Author:
Jennifer Beeston is a nationally known mortgage originator who is known for her ability to make the mortgage process easy to understand and zero stress. Featured in articles by US News, Business Insider, TIME, NBC news and countless others, Jennifer is a vocal advocate for mortgage transparency and consumer empowerment. You can find her on Youtube where she has created a library of mortgage education so that everyone can understand mortgages and obtain the dream of home ownership. Her passion is empowering and educating Americans and helping them get HOME. She is ranked as the #1 VA Loan Officer in America and is licensed in 48 states to do mortgages. She has been a top 1% lender since 2016 and offers VA, Conventional, FHA and Jumbo mortgages. She is also the author of Brainhacked, which is a modern guide for saving and protecting your money in a tech based world.
Licensing:
Jennifer Beeston NMLS ID: 247743; MS - 247743, MT - 247743, NC - I-189119, ND - NDMLO247743, NE - Licensed, NH - Licensed, AK - AK247743, AL - 72998, AR - Licensed, AZ - 1007541, NJ - Licensed, NM - Licensed, NV - 66544, NY - Licensed, OH - MLO-OH.247743, CA - CA-DOC247743, CO - 100516570, OK - MLO20600, OR - 247743, PA - 91992, SC - MLO - 247743, CT - LO-247743, DC - MLO247743, DE - MLO-247743, FL - LO66900, SD - MLO.08498, TN - 205478, TX - Licensed, GA - 70357, HI - HI-247743, VA - MLO-40552VA, VT - VT247743, WA - MLO-247743, IA - 33839, ID - MLO-2080247743, IL - 031.0054184, WI - 247743, WV - LO-247743, WY - 8203, IN - 41478, KS - LO.0039219, KY - MC717200, LA - Licensed, MA - MLO247743, MD - 247743, ME - Licensed, MI - 247743, MN - MN-MLO-247743, MO - MO-247743
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Ready to take the next step towards your dream home? Book a consultation with Jennifer Beeston today!
Whether you're a first-time buyer or looking to refinance, Jennifer is here to guide you through the process with ease and clarity.
