When looking for a home, many potential buyers should be aware of some common real estate agent tricks. Many sneaky agents use tricks such as overestimating property values and high-pressure sales tactics.
This is definitely not to say that all agents use tricks. There are honest agents out there who won’t risk your happiness for a quick sale. But there are some out there only after your pockets. So, you should know to ask certain questions when buying a house.
In this article, we’ll uncover 5 common real estate agent tricks to look out for and how to protect yourself from falling victim to them.
Whether you’re looking for an investment property or a seasoned property investor, this information will help you make informed decisions and approach the real estate market with confidence.
High-pressure sales tactics
To create a sense of urgency to close a deal quickly, some real estate agents use high-pressure sales techniques.
These strategies are employed by sneaky real estate agents to induce potential buyers to make a decision before they are ready or fully informed. Withholding relevant information and making limited-time offers are two common examples of high-pressure sales tactics in real estate.
Bait-and-switch
Buyer beware! Bait-and-switch is a common trick used by real estate agents to deceive potential home buyers. This scam involves promoting a house with attractive features at a bargain price. Overall, the goal is to divert the buyer to a different property with a higher price and less attractive features.
Pressure to use their preferred vendors
Another common trick that real estate agents use is to pressure potential buyers and clients into using a particular vendor for services such as inspections, repairs, or renovations.
These vendors might give the agent a kickback in exchange for the referral. Therefore the agent is put into a tough spot. The agent might then prioritise their financial gain over what’s best for their clients.
Hiding negative information
This trick is prevalent among bad real estate agents. A real estate agent has to give you relevant information on any property. However, the agent might hide or downplay details about the property that could lower its value.
These include being near a noisy road, the roof’s age, or having mould or water damage. Additionally, the agent might refrain from mentioning local developments or zoning changes that might have a negative effect on the value of the property.
Lowballing the property value
Lowballing is when an agent undervalues a property’s market value. This is done in an attempt to induce a sense of urgency and increase revenue through quicker sales. This trick can be dangerous to both the seller and the buyer. The buyer may ultimately pay more, while the seller is likely to receive less than the property’s fair market value.
As a buyer, do your research on the property’s market value before making an offer. Working with an unbiased estate agent who can offer a clear opinion of the property’s value is also advisable.
How to protect yourself from falling victim to these tricks
It’s important to be cautious and protect yourself from dishonest agents when buying or selling a property. Here’s how to avoid sneaky real estate agent tricks!
Work with multiple agents
By working with multiple agents, you can compare the properties and neighbourhoods they show you, their advice, and recommendations. As a result, you’ll have a more thorough understanding of the real estate market and will be able to make informed decisions.
Ask questions
As a prospective buyer, you have the right to ask questions and get clarification on any aspect of the buying process. You can ask questions regarding the properties you’re interested in, the agent’s experience and qualifications, and the terms and conditions of the sale.
You can also learn more about the properties and their market, as well as the agent’s goals and motivations, by questioning them.
Work with a reputable agent
An agent with a good reputation will have a record of happy clients. Accordingly, they will be more likely to act with honesty and integrity. Furthermore, they will be knowledgeable about the local real estate market. Thus able to offer helpful advice and guidance during the buying or selling process. Working with a reputable agent increases your chances of having a positive experience and achieving your real estate goals.
Some FAQs from agents and property owners
What do real estate agents struggle with the most?
One of the biggest challenges that real estate agents face is managing their time effectively. The job can be very demanding, with long hours and a lot of client interactions. Agents need to be able to balance their time between administrative tasks, marketing efforts, and actual property showings.
This can be especially challenging for new agents who are still trying to build up their network and establish themselves in the industry.
How can I improve myself as a real estate agent?
If you’re looking to improve yourself as a real estate agent, there are several things you can do. First and foremost, focus on building relationships with your clients. This means being a good listener, understanding their needs and concerns, and providing excellent customer service.
You should also work on your communication skills, both in-person and online. Be responsive and professional in your interactions, and make sure your marketing materials are high-quality and engaging.
What is the key to success in real estate?
The key to success in real estate is all about building relationships and providing value to your clients. This means understanding their needs and working tirelessly to help them achieve their goals.
Successful agents are also great at networking, both within the industry and in their local communities. They are always looking for ways to grow their business and provide more value to their clients.
What is the 2% rule in real estate?
The 2% rule in real estate is a guideline that some investors use when evaluating rental properties. The idea is that the monthly rent should be at least 2% of the purchase price of the property. For example, if a property costs $100,000, the monthly rent should be at least $2,000.
This rule is not a hard and fast requirement, but it can be a helpful starting point when evaluating potential investments. Ultimately, there are many factors to consider when investing in real estate, including location, rental demand, and potential maintenance costs.
