What you Should Never Tell a Real Estate Agent when House Hunting
Win the Property Buying ‘Game’
Buying property often plays out much like a game.
The seller wants the highest possible price they can get for their house, apartment or townhouse and the buyer wants to buy at the right price.
And the real estate agent has an agenda too, which is that she or he is working for the vendor. They may be as nice as pie to you but they want sell the place, get the highest possible price and make a good commission.
If you want to win the buy a property game, you’ll need to play your cards right to win the prize.
Real estate agents especially successful real estate agents, have been trained to deal with people, play on their emotions and induce a ‘fear of missing out’ feeling in buyers.
While their questions and kindness may seem like a natural part of conversation, you must be aware that the agent is not working for you.
Real estate agents are also trained in that art of showcasing a property’s strengths and glossing over its weaknesses.
So, when you’re going to play the game, you should remember it’s best to keep certain information hidden from a real estate agent when inspecting a property.
Whether you’re looking for a home or an investment property, what you tell (and don’t tell) the agent can impact your chances of securing your dream home at a reasonable price.
Whether the market is skyrocketing with demand or appears to be flat, it’s important to keep in mind these handy tips of what NOT to say to a real estate agent.
Remember that buying a property is a negotiation process, and if you declare your maximum price, you’re revealing your hand way too early.
Real estate agents want to know what you would be willing to spend because their goal is to push the price for the property as high as they can. After all, that’s what the vendor is paying them to do.
Alternatively, if you state you budget and it’s too low for the property you’re inspecting, the agent won’t take you seriously.
The best tip is to avoid pricing up the property (and yourself) and tipping off the agent. If you are asked for a price, you can say “I’m looking at properties around this mark”, and then flip the question back on them by asking, “Okay, what is the owner going to accept for this place?”.
Giving away details of your work or income may also tip off the agent who will be trying to guess what you can afford.
The best way to approach the topic is to bring up the prices of comparable properties, while noting their strengths and weaknesses. This will show you are scoping the market for similar properties and that you’re looking to buy property, but only at the right price.
This is perhaps the biggest trap.
If you show an agent that you’re emotionally invested in a property, they have your hopes and dreams in their hand. Good agents and auctioneers are very skilled at playing into people’s emotions and extracting a higher price.
One tip is to start by telling the agent you are looking for an investment property, not a home you want to live in.
Many agents will assume this will make your buying decision more logical than emotional.
You should also mention you are weighing up this property against others on the market at the same time. Agents are always happy to play buyers off against each other; it’s not a bad idea to return the favour.
And be aware of the common things agents look out for to understand whether you are emotionally attached. You might accidentally show your attachment by mentioning your ideas for decorating, furniture placement or picking out the kids’ bedrooms.
This combined with body language and voice tone are indicators you should be aware of and try to control.
Agents will also keep and eye and ear open for signs you have an impending deadline.
So, don’t let them know your rental lease is set to expire soon, or you don’t have room in your current home for a new member of your growing family.
And don’t, whatever you do, tell them your house is sold and the settlement date is catching up with you.
It’s often these type of deadlines which are not only picked up on by agents but lead buyers into rushed decisions - paying too much or settling for a property that doesn’t tick all your boxes.
You should always have a Plan B just in case your search doesn’t turn up the right investment property or home.
You may think what I’m saying here is you should always play it cool and never let on that you’re interested.
But this can be a trap too and may see you miss out when an agent is ringing around trying to get last minute (or after the auction) offers.
You should remain honest about your intentions and if you are genuinely interested in a property, you should tell the agent you are.
Finding the balance between keeping your feelings private and making your interest known can be tricky task, but you can show your interest without giving too much away.
By simply walking through the property and calling the agent later with prepared questions is generally enough to keep you in the loop.
If you aren’t confident in following these tips when you’re dealing with a real estate agent, you can always hire a buyer’s agent. A buyer’s agent or buyer’s advocate can conduct inspections and ask the property agent questions on your behalf.
If you’re looking for a buyer’s advocate in Melbourne, Property Mavens has you covered. Call our friendly team to find out more or book a free consultation below.
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About Miriam Sandkuhler, Property Investment Advisor
With Diplomas in Property and Business Studies – in a non ASIC regulated industry, she’s uniquely qualified to develop and also fulfill successful and sustainable property investment strategies for her diverse range of clients - investors, SMSF trustees and home buyers alike.
