6 Slimy Tricks Real Estate Agents Play Revealed

HomeHome Buying6 Slimy Tricks Real Estate Agents Play Revealed

Want to Score Cash For Free?

  • Survey Junkie: Earn up to $50 per survey with one of the highest-paying survey sites on the web. Join Survey Junkie Now
  • SoFi Money: Earning money for unlocking better features sounds like a dream. But this free banking app really pays you $100 with you switch your direct deposit to SoFi Money. Get SoFi Money.
  • Aspiration: This mobile banking app lets you do everything for free and takes no fees — ever. Better yet, if you join through this link you can get $100 in your new account.

Estate agents, in general, do help in making the buying/selling process of your property more convenient.

Nobody is denying this.

But that doesn’t mean they always operate with high morals and principles. Keeping in mind that agents are people with dreams, desires, and bills at the end of the month, it makes sense that some might make the deal work in their favor, as opposed to the clients. The typical real estate commission fee averages about 5 percent to 6 percent of the home’s sales price, so make sure they are earning it the right way. These are some of the most common tricks agents tend to use.

1. Creating Hype And Urgency

Time is of the essence for the agent, because property owners don’t want their real estate dead on the market. So, agents might hype up the property in order to get some attention. In fact, they might even schedule a showing with another potential buyer at the same time they are supposed to meet you, just to create urgency on your part. In some cases, they try to introduce what is referred to as sealed bids, where you blindly bid against other buyers. More specifically, you have no idea what the other buyers are offering.

This is aimed to achieve two things. Firstly, the agent wants you to bid higher than the budget you established. And secondly, they want you to think under pressure. Naturally, you should never feel pressured to make a purchase. And if other buyers show up during a showing, it just means you are working with a very unprofessional agent. Stick to your guns and your established budget at all times. Because what’s the point of getting your dream house, but you can’t afford to eat?

Want Free Money?

  • Aspiration: Want to get spotted a $150 for free? Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $150 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

2. Keep Your Budget Info Personal

There is absolutely no reason why you need to share your budget details with an agent. More specifically, you don’t have to tell them your bottom line if you are selling, or your maximum if you are looking to buy. There are agents who will ask for this information, and if they do, they intend on using this information to their benefit.

Don’t let the agent’s personal agenda become part for your deal, seeing as it will not count in your benefit. Consider valuing your house beforehand, so you know what you’re dealing with.

3. Fake Bids for a Higher Price

It happens that right in the middle of a deal when you think everything is settled and the final paperwork has to be finished, the agent calls. And instead of telling you, you are the new owner, they inform you a higher bid has been placed by a buyer that was previously interested. And even though this happens, it doesn’t mean it is true. Phantom offers created by agents to drive up your maximum still happen, and you can fight this in different ways.

  • Ask for official proof that the buyer exists and that they made the offer that is supposedly higher
  • Enforce the Good Will Charter, where both parties put down a deposit, which they lose if they don’t go through with the offer
  • A lock-out agreement sees the owner of the property removing it from the market for a certain amount of time, while you handle the finances and paperwork
  • These options are not full-proof, but they provide some basic protection against fake offers pushing your budget.

4. Exploiting Special Circumstances

Some lenders can be deceiving when it comes to advertising. For example, they advertise the property at 80% of the price, which confuses people (government loans of 20% of the property value) and implies they are getting a better deal.

5. Forcing Mortgage Brokers

You will no doubt come across some agents who will recommend specific mortgage brokers. And this is fine if it stays with a recommendation. But if the agent insists you work with his or her broker, only to add consequences if you don’t, then get another agent.

The reality of the situation is that many brokers and agents have a close relationship. And that means they help each other make as much money out of their clients as possible. Sure, get a quote. But never feel pressured or forced to work with a specific mortgage broker.

6. They Try to Sell You Extra Advertising

Not every house is going to sell the moment it hits the market. And when a property sits for too long, it gets tougher and tougher to move it. However, that doesn’t mean you should start paying for extra advertisement, which is something an unethical agent is most likely to offer.

7. They Buy Inheritance Leads to Get To You

Inheritance leads can be very lucrative for really promising and daring real estate agents. The legal heirs are generally in a hurry to sell the property. Hence, they do not mind selling the property even below the market price and real estate agents know this.

This is where you have to start asking yourself some questions. For example, if the agent did the best he or she could the first time around, what type of advertising will be effective now? And why did they avoid it with the initial campaign? You can even ask whether they plan on giving the money back after they get a sale.


Want Free Money?

Simply sign up for Aspiration, and the free banking app will give you cash for free, you just relax while it gives you $100 just for opening a new debit card. There’s no catch. This bank account is legit and only takes two minutes to sign up for an account.

Learn more

The Best Apps to Save You Real Money

We are on our phone a lot, right? Wouldn't it make sense to save money with the best money saving apps?

AppAt a glancedownload
Get a $100 bonus at Aspiration when you open and fund an account with $10 or more. Then use your Aspiration debit card to make at least $1,000 worth of cumulative transactions within 60 days of account opening.
Open a new account in the next 24 hours and you could get up to $200 in free stock.
Truebill reviewTruebill
This free app delivers on its promise to save you money effortlessly. You can use it to lower your bills, cancel unwanted subscriptions and bill negotiations.

About the author

Brian Meiggs
Brian Meiggs
Brian Meiggs is a personal finance expert, and the founder of My Millennial Guide, a personal finance site helping you put more money in your pocket. He helps millennials follow the smart money in order to increase their earning potential and start building wealth for the the future. He regularly writes about side hustles, investing, and general personal finance topics aimed to help anyone earn more, pay off debt, and reach financial freedom. He has been quoted as a top personal finance blogger in major publications including Yahoo! Finance, NASDAQ, Discover, MSN Money and more.


Please enter your comment!
Please enter your name here

On a similar note...

Explore More On

7 Best Bank Bonuses and Promotions of April 2021

aspiration★★★★★This Company Will Give You $100 for Opening a Free Account
Boost your savings and earn up to 1.00% APY interest on your savings. Get up to 10% cash back on your purchases. Get $100 bonus when you spend your first $1,000 with your new Aspiration Plus Card.
personal capital★★★★★
The First and Only Interest Earning Crypto Account
Receive up to $250 Bitcoin bonus when you make qualifying deposits over the first 30 days. Receive up to 8.6% annually on your crypto. Join the most trusted financial services for crypto investors on the market.
personal capital★★★★★Get Up $200 in Free Stock for Joining
Commission-free stock, ETF and options trades. Get a free stock worth up to $200 when joining (must complete application). Simple, easy to use investor platform with no account minimums.
sofi★★★★★All-In-One Investing That's Easy to Use
Tired of Robinhood? Invest in stocks, ETFs, crypto, or automated investing in all one app. No commissions for stocks and ETFs. Complimentary access to SoFi Financial Planners.
personal capital★★★★★The Smart and Free Way to Manage Your Money
Take control of your finances with the perfect union of technology and highly personalized service. Get access to free online financial tools, including retirement planner, investment checkup, net worth calculator and more. Digital-first wealth management advisor with 24,000 clients in 50 states.
blooom★★★★★401K and IRA Management
Start your free 401k and IRA management now. Find and reduce hidden fees. Improve your diversification.
cit★★★★★Enjoy the Benefits of a CIT Bank Money Market Account
A CIT Bank Money Market Account helps you get more from your savings with interest rates for maximum growth. Earn over 7x the national average with high-interest rates. It now pays to open a money market account with CIT Bank.
My Millennial Guide