Additional Coverage:
- 15 Lies Realtors Have No Problem Telling You (financebuzz.com)
Buyer Beware: Unpacking What Your Real Estate Agent Might Not Tell You
Buying or selling a home is often one of the biggest financial decisions we make, and navigating the intricate world of real estate can feel like a full-time job. From new jargon to complex policies, it’s easy to feel overwhelmed. While real estate agents serve as valuable guides, it’s crucial to remember they are also human — and sometimes, what they say might not be the complete picture, or even entirely accurate.
To help you make informed decisions with confidence, we’re peeling back the layers on some common statements you might hear from real estate agents. Being on your guard can save you time, money, and future headaches.
Common Real Estate Agent Claims to Question:
- **”That is (or isn’t) up to code.”
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Real estate agents receive some training in building codes, but it’s not their primary area of expertise.
Local building codes change frequently, meaning an agent’s knowledge might not be current. For definitive answers on code compliance, always consult a qualified home inspector or a local building department.
- **”It’s free to use an agent for the buyer.”
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While the buyer’s agent commission often appears on the seller’s side of closing documents, don’t be fooled.
That cost is ultimately factored into the home’s listing price, meaning every dollar spent on a house, including agent fees, comes from your pocket.
- **”There’s nothing wrong with this house.”
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An agent’s role is not to be an inspector.
Even if a property appears flawless, a professional home inspection is always a worthwhile investment. It’s your due diligence that will uncover hidden issues like mold or plumbing problems, not your agent’s assurance.
- **”I’ve already got a buyer for your home.”
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An interested party is far from a done deal.
Nothing is solid until a contract is signed, and even then, real estate agreements can fall through. Don’t let the promise of a phantom buyer be the sole reason you choose a particular agent.
- **”This house is in an up-and-coming neighborhood.”
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Often, this is real estate code for: “The neighborhood hasn’t improved yet and is currently less desirable.”
While your agent might genuinely believe in an area’s potential, they cannot predict the future. Their incentive to care about the neighborhood’s long-term trajectory significantly diminishes once their commission is paid.
- **”If you ask for contingencies, you’ll lose the deal.”
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Contingencies, such as a home inspection or appraisal contingency, can be inconvenient for sellers, especially in a competitive market.
However, they are vital protections for buyers. A “great deal” with hidden issues or an overvalued appraisal isn’t a great deal at all.
Always protect yourself by including necessary contingencies in your offer.
- **”It’s always a good time to buy.”
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Tell that to someone who bought a home right before a market downturn or when interest rates were sky-high.
There absolutely is such a thing as a bad real estate decision, and timing is a significant factor. Market conditions fluctuate, and what’s right for one person might not be right for another.
- **”You’ll never sell your house as a FSBO (For Sale By Owner).”
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Agents may cite statistics showing that FSBO homes sell for less than agent-assisted properties.
However, these figures can be misleading. A significant portion of FSBO sellers already know their buyer, often leading to a friends-and-family discount.
FSBO is also more common in rural areas with lower home values. In reality, about 13% of homes are sold via FSBO.
- **”Real estate prices only go up.”
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While real estate tends to appreciate over the long term as an asset class, this doesn’t guarantee your specific home’s value will increase next year, or even in the next five or ten years.
Home values can go up, down, or sideways depending on local market conditions and broader economic factors.
- **”We have multiple offers on this property.”
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While it’s unethical for an agent to misrepresent interest in a property, it does happen, and it’s difficult for buyers to verify.
Don’t let this statement deter you from making an offer you’re comfortable with. It never hurts to throw your hat in the ring.
- **”Your house is worth $X more than the other agent said.”
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Some agents might inflate your home’s potential value to secure your listing.
Always ask for a comparative market analysis (CMA) or “comps.” This document will show you recent sales of similar homes in your area, allowing you to verify their price estimate with factual data.
- **”I specialize in __________ homes.”
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An agent who truly specializes in a particular type of home or with a specific demographic of buyers will be eager to demonstrate their expertise.
Ask to see their portfolio of recent sales in that niche or request referrals from past clients to confirm their track record.
- **”You’ve got to see this house — it’s perfect!”
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Agents are salespeople, and it’s natural for them to highlight a home’s best features while downplaying its drawbacks.
While enthusiasm is part of the job, be aware that their “perfect” might not align with your definition. Always evaluate a property objectively based on your own needs and priorities.
- **”Commissions are non-negotiable.”
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Nearly every fee in real estate, except those charged by the government (like recording fees and taxes), is negotiable.
Agents can and do adjust their commissions to secure business, especially in a competitive market. It never hurts to ask for a reduction.
- **”It’s a great time to buy a house.”
**
This statement might reflect general market conditions, but is it a great time for you to buy a house?
Your agent doesn’t know your complete financial situation, your budget specifics, or your personal risk tolerance. A hot market doesn’t automatically mean it’s the right time for your individual circumstances.
The Bottom Line
There are many ethical, knowledgeable, and incredibly helpful real estate agents out there. However, like any profession, there are also a few who might stretch the truth to get a listing or close a sale. By being aware of these potential deceptions and conducting your own due diligence, you can better prepare yourself financially and make sound decisions, whether you’re buying your dream home or selling your current one.
Smart Money Moves for Everyone
No matter your financial situation, there’s always an opportunity to optimize and improve your well-being. Here’s a quick checklist of things you can look at today:
- Focus on paying off debt: Debt can significantly hinder your financial progress. Beyond cutting expenses, consider tools like balance transfer credit cards or debt counseling to accelerate your payoff plan.
- Explore extra income opportunities: If finances are tight, earning supplemental income can make a huge difference. While a new primary job is an option, a part-time side hustle could be a better fit if you’re not ready for a big change or are already retired.
- Cut your expenses: While this might sound daunting, it doesn’t have to be. Start by reviewing your biggest expenses, as these are often where you’ll find the most significant savings.
For example, auto insurance rates have been soaring, so shopping around for a new provider could be the fastest way to reduce your bill. Similarly, finding the right travel credit card could help offset costs for an upcoming vacation.
Read More About This Story:
- 15 Lies Realtors Have No Problem Telling You (financebuzz.com)