Real Estate Agents and Tactics
Most real estate agents I’ve dealt with are professional, knowledgeable, and genuinely care about providing a good experience. However, it’s crucial to remember that agents work for the seller, not you. As a first-home buyer, there are some common tactics to watch out for, and knowing them can save you from unnecessary stress and bad decisions.
Buying agents
Some agencies have agents who work on behalf of buyers. They’re paid via commission from the seller, so usually only help serious buyers. While not essential for first-home buyers, a good buying agent can:
Monitor the market and alert you to new listings early
Arrange private viewings
Advise on pre-auction offers
If you use a buying agent, always contact them before viewing a property — they only earn commission if they accompany you on your first visit.
Selling agents (Listing agents)
Listing agents work exclusively for the seller. Their goal is to secure the highest possible price, not necessarily help you as a buyer. Keep this in mind when they offer advice or make suggestions.
Good things to know
Disclosures and predictions
While real estate agents are legally required to be truthful, the reality is that some may work with the seller to keep issues hidden. If the vendor doesn’t disclose something, the agent isn’t obliged to mention it either. That's why it's crucial to never take everything the agent says at face value—always verify the details yourself. Some agents may even inflate certain aspects of the property to make it sound more appealing. You'll learn to spot the preposterous propositions being made soon enough, and here's some of my favourite gems:
Power pylons are very close by; agent remarks Transpower is actively planning to underground the national grid in Auckland in the next 5 years!
Master bedoom faces a cemetary; agent remarks it's a "quiet park".
Neighbours are being rowdy; agent remarks they're seriously considering selling, despite having lived there for more than 30 years!
By being diligent and verifying the information for yourself, you can avoid falling for some of these misleading sales tactics and make more informed decisions.
"Market Feedback"
Agents often provide “market feedback” — an idea of what the seller expects based on previous viewings or offers. This can help you gauge if you’re in the right ballpark, but agents may manipulate this:
Low feedback can create urgency and attract more buyers
High feedback can anchor expectations and attract uninformed buyers
Be mindful and always do your own homework.
Private viewing
Agents can arrange private viewings outside of open homes. Most will happily accommodate serious buyers — don’t hesitate to ask.
Bad tactics
Brushing you off
Some agents may brush you off at open homes, giving you the impression that you’re not a serious buyer. This is a tactic to make you feel desperate and push you to make an offer quickly. Don’t let their attitude pressure you into anything.
Pressuring you to make an offer
Agents will try to get you to say a price, and make an offer on it. The offer is so the agent can take it back to the owner as proof that they’re working hard for them, and also as ammunition to prepare them if their expected price is too high. Don’t make offers on property unless you actually like it, and be prepared for agents to talk price with you, then come back and tell you no - they’re trying to play you.
The pre-auction offer
Agents love a pre-auction offer (you’ll see what I mean after a few open homes). This is when you make an offer that’s acceptable to the vendor that brings the auction forward. Agents will claim it lets you cut out the competition and lets you win faster. Try avoiding this because the only person that really benefits is the agent – they can sell the house in a shorter timespan and have to do less work. Also, if the price is acceptable to the vendor, it will also be acceptable two weeks later at the actual auction day too.
The multi-offer offer
You try to make an offer on the house, and the agent tells you others have made offers too that are more competitive. Don’t fall for this, they’re trying to shake you down for more. Just present the offer you deem appropriate. One of two things will happen – the vendor will accept the higher offer, which is fair game, or the agent will call you in 2 business days asking for the original offer, making an excuse about the other buyer pulling out.
Undervaluing the property
One of the most frustrating tactics is when an agent tells you the market feedback is lower than it really is. They may tell you a property is worth $1 million when the reserve price is actually $1.2 million. This strategy is designed to get buyers excited about bidding and show up at the auction, creating the illusion of demand. The bidders in the room get flustered with the number of people, think there's huge demand and start bidding higher than they expected to. Always do your own homework and valuation. If something seems too good to be true, it probably is. Remember, there are no real bargains in Auckland’s market.
Being prepared and aware of these tactics will help you stay in control and make informed decisions while navigating the property market.
This is such an awful tactic that in the State of Victoria, Australia, agents will be legally required to reveal a property’s reserve price a week before auction, under nation-first laws to crack down on underquoting.
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