14 Common Real Estate Agent Tricks to Watch Out For

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Real estate agents can be a tremendous help when buying or selling a home, but let’s face it: not all agents have their clients’ best interests at heart. Some agents in a business that revolves around high value transactions have figured out little tricks to add to their own wallets, even if it’s at the expense of their clients. If you don’t know these tactics, you may pay more or get less than you intended to.

If you’re a first time buyer or have bought and sold a number of homes, the same tricks that the agent uses can help keep you on top of the game. In this article, we’ll explore some of the biggest real estate tricks to watch out for and how you can make smart choices and safeguard your money.

Lowballing the Initial Listing Price

Agents sometimes use one trick of listing the home for less than it is actually worth to generate quick interest and multiple offers. The goal? Create a bidding war to push the price back up. This is doable, but it’s a gamble. You may end up with a low offer and no wiggle room to negotiate if the market doesn’t respond as they hoped.

Encouraging Quick Offers

Buyers are impulsive, especially when under pressure, agents know. Agents will also sometimes push buyers to make offers quickly, and even suggest that ‘another buyer is interested’ in order to create urgency. Often this rush tactic causes buyers to miss out on important checks and overlook possible problems with the property. A good practice is to slow down, do your due diligence, and make your own decisions in your own time.

Playing the “Multiple Offers” Card

I mean who hasn’t heard the classic line “There are multiple offers on the table.” It can be true sometimes, but it’s also the line agents use to get buyers to increase their bids. Agents create the illusion of fierce competition so buyers will increase their offers or act faster than they’d want to. And to not fall for this tactic, ask for proof of these ‘multiple offers’ or just make up your mind on the maximum you’re willing to pay, without the pressure.

Omitting Important Details

There are some agents who will leave out important details about a property to make it sound more appealing. For example, they might not tell you about a noisy nearby highway, future construction plans or the property’s flood history. The good news? The information is often public record. There’s nothing an agent won’t conveniently ‘forget’ to tell you, so a quick call to the local planning office or a thorough inspection will reveal anything they were trying to hide.

Downplaying the Inspection

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Buyers looking to have the best inspection experience should be aware that real estate agents may try to talk buyers into skipping the inspection, or doing a quick inspection, in order to keep the sale moving quickly. Some may argue that you should use their preferred inspector, who may be likely to overlook issues like leaky faucets or damaged foundation. You can save yourself from potential disasters later by having a thorough, independent inspection.

Using Emotional Appeals

Real estate is at least as much about emotions as it is about money. There are some agents who know that phrases such as ‘this is the perfect home for your family’ or ‘imagine the memories you’ll create here’ will pull on your heartstrings and make you forget about practicalities. Remember that a house is an investment and staying level headed will help you avoid buyer’s remorse.

Creating a False Sense of Urgency in the Market

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Agents will stress ‘the market is hot’ or ‘prices only go up.’ They might even say that paying thousands more could be the result of waiting a few weeks. Don’t fall for market hype and make a knee jerk reaction. Get to know what is going on in the market before buying, and check recent sales trends to get a realistic sense of pricing.

Pushing Price Reductions

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An agent might push you for a price cut if your home isn’t selling as quickly as you’d like. It is sometimes necessary, but it can also be a means for them to sell quicker and move onto the next client. If you think you have a fair price in the market, try to hold firm or to negotiate and compromise.

Promoting Certain Lenders

It’s not unusual for agents to point you towards a particular mortgage lender, saying they have a ‘great relationship’ with them. They might not tell you that they could be getting a referral fee. Since you don’t always have to go with an agent’s recommendation, it’s wise to check around for lenders to get the best rates and terms for you.

Glossing Over Fees

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There are countless fees that accompany real estate transactions: closing costs and agent commissions are but a few. And some agents may initially play down these fees making the deal appear cheaper than it truly is. Whether you’re taking out a loan or paying in cash, make sure you get all the costs upfront, including surprise fees, so you can budget realistically.

Favoring Certain Listings

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Agents may sometimes show you listings where they will make a higher commission and gently guide you away from other homes. They may not show you the pros of homes with lower commissions or downplay them. If you want a bigger picture, ask them to show you every listing they have within your criteria, or check out the public listing websites to see what’s out there.

Inflated or Outdated Comps

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When an agent sets a listing price, they’ll often use recent sales of other homes similar to the one being sold — comps. But some agents use comps that are just a bit too old or not quite comparable enough to make a home look like a steal. Always double check comps with a third party site or app to make sure you’re comparing apples to apples.

Overstating a Property’s potential

Have you ever walked into a fixer upper only to have an agent tell you about its ‘potential’? In many cases, agents will talk up a home’s future possibilities, saying that all it needs is a little TLC. Of course, these changes can be fun to imagine, but they don’t come cheap. Never commit to a property based on its “potential” without always calculating the real costs of the renovations.

Using Staging Tricks

Sure, staging can make a home look amazing, but it’s also a way for agents to divert a buyer’s attention away from flaws. Ways to mask imperfections are with large mirrors so rooms appear bigger, savvy lighting, and fresh paint. What may be bright and airy in an open house could feel cramped and dark once you move in. That’s why it’s helpful to bring a flashlight along to viewings to inspect every nook and cranny.

Disclaimer: This list is solely the author’s opinion based on research and publicly available information.