Do you take a realtor at his or her word when they speak? You realize, deep down, that most of what they say is useless, untrue claims created primarily to influence consumer behavior for their own gain.
Real estate agents only have one goal in mind: to earn the highest commission with the least amount of time and effort. Bullshit assists them in achieving their objective since it dispels all doubts by saying what listeners want to hear.
One of the reasons the real estate sector occasionally gets a poor name is its propensity for distributing false information about a property. Here is a list of the most common lies real estate salespeople tell buyers to help you navigate through the potential lies you may hear.
This list will arm you with the knowledge you need to confront any real estate agent lies you may come across during your home-hunting process and respond by taking appropriate action.
When Do Agents Lie, and How?
The most common reason real estate brokers lie is to benefit themselves. On their websites or blogs, they could exaggerate their qualifications or professional background.
Some people spend excessive amounts of time publishing online in order to maximize their exposure on search engines. Others purchase advertisements to appear above search results on Google and Yahoo and pay for commercial rights.
You may therefore ask, and with good reason, if you can trust an agent’s website.
With a little bit of investigation, you can learn all you need to know about a real estate agent’s honesty. You can determine whether agents are exaggerating or providing you a false impression of their qualifications, skills, and experience.
Common Lies Realtors Tell Buyers
The majority of agents are more reliable than is often believed. They depend on recurring customers, thus they want and require content customers. Additionally, the code of ethics in Pakistan forbids unethical conduct, yet occasionally a few dishonest brokers can get away with it.
You will lose the deal if you not act right now
A dishonest broker would say or do anything to close the business. They may therefore inform you that there is a competing bidder and that you must increase your offer to outbid them. Frequently, it is accurate, but not always.
I suggest finding out who the buyer is, who is representing them, and whether your broker is familiar with the other firm in order to determine whether this is simply a sales strategy to pressure you into closing (or paying a higher price, a portion of which goes to the agent).
As with many lies, pressing for further information should reveal quite quickly if your broker is telling the truth or not in this case.
Ask your own broker whether they believe that there is a greater bid if they are informing you of it, as sometimes the seller’s broker will provide such information in an effort to get a higher price.
I labor for you for free because the Seller compensates me
Well, this one has some validity…
The buyer agent is technically compensated by the seller. But! The proceeds of the sale—i.e., the money you, the buyer, pay the seller—are used to pay the buyer agent. Because they aren’t directly paying them and it appears to be free, buyers frequently make the error of failing to complete their research before choosing an agent to represent them. It isn’t.
For a 300,000 PKR purchase, I’ve seen consumers spend numerous hours online comparing prices before hiring the first agent they come across. Selecting the incorrect agent can cost you thousands of dollars and sleepless nights.
You’ll be able to complete those renovations without a doubt
Many purchasers come in and want to renovate, and some brokers will tell them, don’t worry about it, those upgrades won’t be a problem but truly they have no clue about the building’s alteration policy.
The only real way to determine if the modifications you want to make will be an issue is to submit your plans to the building.
However, you can also determine the viability of your plans by looking at the building’s policies (or having your lawyer do so) and learning (ideally through the managing agent) whether this type of work has historically been permitted.
If you just act as though everything would be fine, it could lead to trouble (and additional costs) in the future.
I can offer the same level of service whether I’m representing the Seller or you, the Buyer
What is permitted when an agent represents both the buyer and the seller is fairly clear under real estate law. It’s called multiple representation, but the service you would receive if you and the seller both had a representative is anything but the same.
An agent who represents both the buyer AND the seller is acting as a mediator and is bound by the following duties:
- State in writing that each party has read, understands, and agrees that the agent will represent both parties.
- Act in the buyer’s and seller’s best interests (it can be challenging to give the greatest service for one party when doing so typically requires giving up something for the other side).
- Not divulge private information to either party
There is no negotiating for the commission
You are more than allowed to raise concerns when a real estate agent offers an unusually large commission for the sale of your house. You should hire someone else if they don’t say the commission fee is negotiable.
It can be one of the many lies real estate agents tell to acquire what they want. Why do they act this way? No real estate agent likes to take a reduced commission for their services, which is why.
You shouldn’t even be questioned by an honest and dependable real estate agent about negotiating a commission rate.
Instead of telling you that something is not negotiable, they ought to be willing to have a conversation with you. The truth is that everything is a question of negotiation. So never accept a negative response.
The structure is in fantastic shape!
Another situation where your broker might not have all the information necessary to provide you a complete picture of the building’s general condition and whether or not expensive repairs are likely in the near future.
For instance, in my building, we’re spending millions of dollars on renovations on the facades, roofs, and parapets.
But before three years ago, a broker might have made a sale in the building without being aware of this development, and the buyer might not have been aware that they would afterwards be subject to a high assessment.
It is possible to prepare in advance for situations of this nature, and you should make sure your lawyer is carefully reviewing the building’s financial statements.
One thing they should consider is the cost of repairs; for instance, if a building required PKR 500,000 in plumbing repairs in a year, it may be a sign that more, more expensive plumbing work will soon be required.
In many cases, if maintenance costs are considerable, a larger, more expensive improvement is on the horizon.
Final Words
I did not claim that all real estate brokers are dishonest. Simply said, that is untrue. However, there are several situations or property types that could tempt agents to mislead you.
When an agent lies, it’s typically because they want to sell a house quickly or collect a bigger commission than the typical agent would.
So, new buyers, be on the lookout for any potential lies in these instances and be ready to see right through them. Before you feel pressured to submit an offer, take your time to investigate any claims they make regarding a property.
Additionally, don’t be scared to follow your instincts. Don’t rush if anything doesn’t feel right! Take your time and wait until you feel confident in your choice of a property. Make sure to do your homework and stay away from agent lies.
