Indeed, most brokers simply use the forms without careful analysis of their contents, having received the forms from their associations and usually using them for years without a second thought. A broker earns nothing if a sale does not occur. This necessarily creates a bias in the minds of most brokers in that they seek to encourage culmination of any sales transaction. Further, the higher the price, the more they earn. While this may seem fine for the seller and bad for the buyer, it actually also distorts their advice even to a seller since they will often recommend costly improvements to the property to help it sell which, of course, increases the sales price thus the commission.
Most brokers are honest and hardworking.
It is a competitive and stress filled job requiring long hours on weekends and nights. Nevertheless, while their role is extremely valuable, a wise seller or buyer understands that their economic position within the transaction makes objective advice hard to obtain from a broker. Either by use of a mortgage broker who seeks possible loans from banks, or via the broker who usually has connections with various banks, or on their own, the average buyer does not buy real estate for cash but purchases it by borrowing most of the sales price from a bank or savings and loan association. The usual transaction requires a twenty to thirty percent down payment, with fifteen to thirty year financing for the remainder of the purchase price. Thus a three hundred thousand dollar home will normally require a down payment of anywhere from sixty to ninety thousand dollars plus a loan for the remainder, at interest rates that vary but will normally be around seven to ten percent over thirty years.