What Are The Tricks Real Estate Agents Play on Sellers?
Are there tricks real estate agents play with consumers? You bet there are! In every industry, there are shady tactics.
Some are worse than others.
When selling a home, some real estate agents deceive their clients for their benefit.
Not all agents are like this, but it is worth knowing the strategies such real estate agents use, so you can spot them and steer clear of those agents who are not worth the real estate commission.
All these things are legal, but that doesn’t make them suitable for you! It is quite the opposite.
Many agents will go out of their way to do “the right thing.” Others are more concerned about their income than what’s best for their clients.
These are the rotten eggs you need to stay away from. If you are selling a home shortly, you need to know how real estate agents will fool you.
Below I will separate myths from facts in the real world.
You will see why some of these standard real estate practices do more for an agent’s benefit than a home seller’s. By better understanding these tactics, you can avoid the tricks that real estate agents play.
1. Dual Agency is Awful For Home Sellers
Dual agency is probably one of the worst things a Realtor can do for a client who wants to sell their home. With dual agency, the Real Estate agent attempts to represent sellers and buyers simultaneously, which is technically impossible.
You cannot serve the best interests of both a buyer and a seller involved in the same transaction.
The seller wants to sell for as much as possible, while the buyer wants to buy for as little as possible. Yet, some agents will attempt to offer such a deal to clients because they can get a double commission from the sale.
No seller would ever accept dual agency if they knew the facts. But any Real Estate agent willing to try and play double agent will probably be ready to paint it as a prettier picture than it is.
These types of Realtors may use the same salesmanship skills to convince you otherwise, implying that the agent can serve the needs of both the seller and the buyer. Be warned – THEY CAN’T.
In fact, in many states, laws require that a Realtor serving as a dual agent do nothing to jeopardize the interests of their clients – which means the agent can say nothing on behalf of either party.
So you end up paying commission for an agent that offers none of the same services as a buyer’s or seller’s agent.
Imagine for a moment that you are selling your home. The real estate agent gets a phone call from the internet advertisement they are running. Mr. & Mrs. Jones want to see your home.
If you allow dual agency, the agent YOU hired will no longer represent your best interests.
By allowing dual agency, YOUR agent will become a NEUTRAL party.Click To TweetWhat a Real Estate Agent Cannot Do When Practicing Dual Agency
What does this mean in the real world? Try the following:
- When the buyer makes an offer and asks the agent you hired what you should counteroffer, they cannot answer. Remember, they don’t represent you anymore. They can’t by law give you any advice.
- When the home inspection happens, and the buyer wants you to fix X, Y, and Z, your agent will no longer be able to help you with guidance.
- The agent cannot offer you any real estate advice throughout the transaction.
Sounds lovely. You are paying a real estate agent thousands of dollars, if not tens of thousands. Didn’t you hire the agent for their real estate expertise?
Remember that your agent does not have to become a dual agent. They can work with the buyer and remain a seller’s agent. What this means is they represent you and only you.
Additionally, if the buyer wants their own agent, they can be referred to another agent who can help them.
Trust me. There are a lot of agents that would never consider doing a referral. Why? Simple – it would be taking money out of their pocket. You don’t need this kind of agent.
Understanding agency law in your state is critical. Don’t make the same mistake so many people have made before you. Many real estate agents get sued yearly because of dual agency.
Dual agency is akin to a real estate lawyer trying to represent the plaintiff and defendant in a lawsuit. Sounds silly, right?
There is a reason why some states have been smart enough to make dual agency illegal! The tricks many agents play here is not explaining any of the downsides. A shady tactic that causes sellers to sign on in agreement.
2. Open Houses Without Explaining The Downsides
Some real estate agents love to express to their clients how fantastic open houses are as a marketing activity.
This is the #1-way real estate agents trick their seller clients.
What they fail to tell sellers is the benefit is for the agent. Some unscrupulous agents will suggest to their clients that open houses are necessary to sell a home.
Folks, serious buyers always schedule showings. This is a fact, not fiction.
With an open house, you invite many strangers into your home without knowing whether they want to buy.
Anyone can come to an open house, and they do!
Nosy neighbors, others selling homes that want to compare, window shoppers, and the unqualified.
Worse yet, sometimes even potential burglars are scoping out your home – these are the types of people who come to open houses.
Many Realtors Never Explain Crime That Occurs
Tons of real estate agents never mention the potential downsides of holding your home open to a bunch of deadbeats.
Open houses can be a magnet for crime!
So why do Realtors push open houses so much? Open houses can potentially be great for prospecting new buyers and sellers.
Those other sellers looking to compare may need a Realtor to represent them. Agents can get business from open houses. Unfortunately, that business rarely includes actual buyers for YOUR home.
Statistically speaking, around 2 percent of all sales come from an open house. Yes, you read that correctly, a lousy 2 percent.
You don’t need an open house to sell your home. More importantly, you don’t need an agent who makes an open house the focus of their marketing efforts.
Having an open house is fine as long as you know the downsides.
3. Misleading Sellers on Price
This is the oldest trick in the book. Every seller wants to think that their home is worth more than it is – it’s just human nature.
While a good agent will give you an honest price and be willing to explain why the price is less than you hoped, a shady real estate agent will happily tell you your home is worth more than any other on the block.
Unfortunately, once it comes time to sell the home, no one will buy it at that unreasonable price. But now the agent has your listing and knows it is only a matter of time before you are willing to drop the price.
The most significant problem in such a situation is that you will probably get less for your home by overpricing it than you would have by pricing it competitively in the first place.
An overpriced home sits on the market, gaining a stigma and leading buyers to assume something is wrong with it.
No one bites when you drop the price to what it first should have been. They only come in after you reduce it again – when it looks too good a deal to pass up.
History shows us repeatedly that homes priced correctly from day one sell for the most money.
You may get multiple offers over the asking price in a strong seller’s market. If you overprice your home, you probably won’t see any bids.
Do yourself a favor and carefully examine the comparable sales of multiple agents. The comps never lie; people do! If one real estate agent is giving you pie-in-the-sky figures, you can bet your bottom dollar they are lying to you.
4. Saying Attendance at a Home Inspection Isn’t Necessary
Exceptional real estate agents go out of their way to do their best for a client. A good agent must be ready and willing to represent you at all the correct times, including during the home inspection.
Your listing agent should be at the home inspection representing YOU! Unfortunately, it is common for listing agents to skip out on the buyer’s home inspection.
In some areas of the country, this is prevalent. Here in Massachusetts, I see the listing agent at the home inspection about 60-70 percent of the time. That is, 30-40 percent of the time; the seller is not getting proper representation.
Your Realtor is not there to argue with the home inspector or tell the inspector how to do their job. Instead, your agent should sit quietly and listen to all aspects of the inspection to gain accurate information on the condition of your home.
Home Inspection Issues Get Blown Out of Proportion
Buyers will often over-inflate problems with the home. Sometimes home inspectors will, too. But because your agent was there, they can give you a real-world perspective on the state of your home.
Over the years, I have seen far too many times where buyers made minor problems into much more significant issues. I have seen buyers exaggerate enough that you would call it a lie.
While I was selling a home in Bellingham, Massachusetts, a few years ago, the home inspector told the buyer there were 3-5 years left in the roof’s life. I was there to hear this from the horse’s mouth.
After the inspection, the buyer asked for a concession for a new roof. If I was not there to hear the inspector say the roof had years of life left, the seller might have been out of pocket thousands of dollars.
This is just one example. I see home inspection problems being blown out of proportion all the time. The buyer’s agent is almost always at the home inspection. It would be best if you insisted on your agent being there too.
Be prepared to hear an excuse from a real estate agent who doesn’t attend, like “there is too much liability for me to be present.” An attorney advised me not to go.
Liability is never created by real estate agents who are there to listen. Liability is established when a real estate agent tries to be a second home inspector.
5. Taking a Pocket Listing Without Explaining The Downsides
The best way to sell a home is by having maximum exposure. You will get the most money when there are more people interested. A bidding war will lead to having the best terms.
Some real estate agents love a pocket listing. You could fall for this shady tactic if you haven’t sold a home in many years. With pocket listings, the home is kept in-house.
The only person who will know your home is for sale is your agent and possibly a few others in the office. Don’t expect to get top dollar for your home when it is not presented to the masses.
You want the world to know your home is for sale to get the most money. Don’t fall for this real estate agent trick!
6. Over Promising and Under Delivering
Even the worst agents can still be helpful salespeople – capable of spinning a yarn about what they will do for you, the results they will get, and how smart it is to hire them.
But a bad real estate agent will tend to fall short of those promises.
Failures on the part of the wrong real estate agent often include things like:
Poor Communication Skills
Your agent should be busy selling your home, so they may not be available every time you call.
However, a bad agent may rarely return your calls quickly, fail to tell you about important issues with your sale and be bad at communication.
Promising Marketing But Failing to Produce It
It takes more than a for-sale sign and a listing to sell a home.
A bad Realtor may promise comprehensive real estate marketing – including a website, social media, video tours, professional photography, brochures, etc. – but then only pursue a few of those channels.
Terrible Photography and Property Descriptions
Today’s buyers expect clear, flattering images and often professional-quality video tours. The agent may say they will deliver these things, but then you find that the listing includes shoddy pictures and poor-quality video.
Looking at the property description for your home looks like something a 5th grader would write.
Unfamiliar With Your Market
You want an agent who knows how to sell homes in your area.
These are the things a good Realtor will do for their sellers. If you are selling your home, look for an agent with all these qualities. Put them on your checklist and insist the agent is on board.
Above all else, don’t be deceived by a sneaky real estate agent that cares more about what comes in and out of their wallet. The best real estate agents always put the client first!
How to Avoid Shady Real Estate Tactics
When selling a home, the agent you pick is critical to your success. It would help if you focused on working with someone who always puts your best interests first.
Excellent communication throughout the sales process is paramount.
The best real estate agents understand this and always go the extra mile. Avoid a Realtor who will deceive you by remembering these things:
- Never accept dual agency.
- Don’t pick an agent whose marketing is focused on holding open houses.
- Never pick a real estate agent based on the price they can sell your home.
- Always have your real estate agent represent you at the home inspection.
- Don’t accept an agent having a pocket listing if you want the most money for your home.
- Look for a local agent with an outstanding reputation and a track record of success.
Following these home-selling tips will put you in a better position for success. You will also avoid searching for how to fire a real estate agent.
Final Thoughts on Tricks Real Estate Agents Play
The tricks real estate agents play are common. Don’t feel bad if you’ve been fooled by one of these tactics. Move on and find someone who cares about one thing – your best interests!
Additional Helpful Home Selling Resources
- How to get the most money for your home – learn how to improve your chances of getting top dollar for your property.
- Guide to home selling inconveniences – selling a house can be a pain in the neck. Learn about some of the common nuisances.
- Is my real estate agent working for me – do you think your real estate agent is working for you? You might be surprised. Learn about different types of agencies.
- Get the proper internet marketing – understand what it takes to market a home online successfully.
- Common questions from home sellers – see what questions home sellers always ask. You can learn from the answers to these questions.
Use these additional compelling resources to make the most prudent decisions when selling a home. The advice in these articles comes from top real estate pros from around the country. Take advantage of this sound advice.
About the author: The above Real Estate information on the tricks real estate agents play was provided by Bill Gassett, a Nationally recognized leader in his field. Bill can be reached via email at billgassett@remaxexec.com or by phone at 508-625-0191. Bill has helped people move in and out of many Metrowest towns for the last 37+ Years.
Are you thinking of selling your home? I am passionate about real estate and love sharing my marketing expertise!
I service Real Estate Sales in the following Metrowest MA towns: Ashland, Bellingham, Douglas, Framingham, Franklin, Grafton, Holliston, Hopkinton, Hopedale, Medway, Mendon, Milford, Millbury, Millville, Northborough, Northbridge, Shrewsbury, Southborough, Sutton, Wayland, Westborough, Whitinsville, Worcester, Upton, and Uxbridge MA.
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