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What You Should Never Reveal to a Real Estate Agent

what should never reveal real estate agent

What You Should Never Reveal to a Real Estate Agent

It’s an easy mistake to make; revealing precious information to a real estate agent.

When the courteous, smiling real estate agent greets you at the front door of the property you’re about to view, you feel as though you’ve met a new friend.

But let’s make one thing clear.

While their smiles might indicate otherwise, real estate agents represent the seller – not you. They’ve been hired by the seller.

So next time you’re rambling your way through a viewing revealing your darkest, deepest secrets to your new best friend, you might want to remind yourself that he or she is working to secure the highest value for the property you’re interested in. Your goal is to get it for the lowest possible value.

You should never reveal to a real estate agent:

  1. This property is well within our budget. In fact, we can go as high as $…
  2. We’ve already sold our home and we’re desperate to buy
  3. This house is everything I’ve ever dreamed of
  4. I have no idea what a property like this might be worth

It’s all about strategy

Real estate agents make up some of the most talented sales people in the industry. They’re especially gifted at extracting information. So if you want to play the game with expertise, you’ll be careful about what you reveal. We advise staying clear of the following choice of words (or any words that come close).

You should never reveal to a real estate agent:

1. This property is well within our budget. In fact, we can go as high as $…

Because, bet your bottom dollar, you will end up paying that price – even if the property isn’t worth anywhere near that. Make sure you have an idea of the property’s real value and be conservative when revealing what you’re prepared to pay for it.

2. We’ve already sold our home and we’re desperate to buy

Never let a seller’s agent know you’re in a desperate position or they’ll instantly have the upper hand. There’s no reason to reveal your personal circumstances and it isn’t relevant. Buying a home out of desperation is never a wise action anyway. You always have the option of leasing a rental property between houses if the settlement dates don’t match.

3. This house is everything I’ve ever dreamed of

Real estate agents will be trying to gauge your level of emotional interest because they know that emotional buyers can be manipulated into paying more. Treat the buying process like you would a business acquisition. Point out faults with the house. Tell the agent there’s another property you’re interested in. Always keep the upper hand. Most importantly, save your glowing compliments for your partner or a friend.

4. I’ve no idea what a property like this might be worth

Buying a house is one of the biggest financial investments you’ll ever make, so never go in blind. Educate yourself about your market including similar properties for sale or register with realAs to gain realistic price predictions on properties before viewing. Show the agent you’ve done your homework and that you know what you’re talking about. An educated buyer is more difficult to manipulate.

And remember…

It’s important to realise that every real estate agent is different. There are many agents with strong work ethics who recognise the importance of maintaining trustworthy reputations within their local communities. But at the end of the day, they are still working to negotiate the highest sales price for their client. So long as you maintain a clear understanding about what you’re looking for and how much you’re prepared to pay, they have little leeway to manipulate. They may even be helpful in recommending other suitable properties.

If you think you lack the confidence or skills to manage the buying process alone including negotiation of buying price, ask a more experienced friend or relative to help you, or consider hiring a buyers’ advocate.

“The number one rule when negotiating is that you should control the negotiations.” – David Morell

 

REALas accurately predicts property prices

REALas property predictions are 5% from home sale prices on average – Australia wide including auctions and private sales.

 

realAs real estate property valuation home price guide report

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