| Like in many professions and occupations there | | | | owner to reduce the price. Agents will say that |
| are honest and ethical people and there are some | | | | there has been "lots of activity" and, if no one |
| who aren't. Since the commissions of the Real | | | | has bought, the price must be lowered. But |
| Estate Agent are being paid by the seller of the | | | | agents do not say that the people who looked |
| house a buyer cannot relay on his objectivity or | | | | were not qualified buyers. |
| impartial conduct, exactly as since without a buyer | | | | -Betrayal of Confidence, Many agents are quick to |
| there is no deal, the seller can expect the agent | | | | betray the confidence of home sellers. If the |
| to exert pressure to lower the selling price. | | | | home seller is ill or going through a divorce or has |
| In short, the agents' main interest is to make | | | | financial problems, this highly sensitive information |
| sure that there would be a sale, so he would be | | | | is often given to buyers. One real estate trainer |
| able to get his commission, therefore he would do | | | | openly boasts that he "loves divorces" and |
| anything in his power to make the buyer pay | | | | encourages agents to exploit this emotional |
| more than he wanted and on the other hand (the | | | | trauma. The personal details of home sellers |
| good hand :-), push the seller to settle for less | | | | should never be revealed. Home owners are |
| than he hoped to be paid for his property. | | | | advised here to keep their personal problems to |
| In general it make sense to bring both sides to | | | | themselves or in other words "take the fifth |
| agree on realistic price that can cut a deal, what | | | | amendment". |
| we would concentrate here though, is the | | | | How Real Estate Agents Manipulate Buyers |
| unethical dirty tricks and manipulations some of | | | | - Untruths, They deliberately telling lies about the |
| the Real Estate Agents are using in order to | | | | likely selling price of a property causes enormous |
| achieve it. | | | | emotional stress to homebuyers. Buyers are |
| Misconduct of Agents to Seller | | | | often given false hope about the price a home |
| The sellers are the biggest losers from the real | | | | may sell for. They get their hearts set on homes |
| estate agents tricks. | | | | which they have little or no chance of affording. |
| - Home owners are often duped into paying | | | | Buyers are often used as pawns to persuade |
| money to agents before their homes are sold. If | | | | owners to reduce prices. |
| their home does not sell, or it sells for less than | | | | - Apathy, The treatment given to many |
| the consumer was led to believe, this money, | | | | homebuyers is often flippant. Many buyers are |
| which often amounts to thousands of dollars, is | | | | stunned at the almost complete lack of interest |
| lost. | | | | shown by real estate agents when they make an |
| - The main purpose of advertising is NOT to sell | | | | enquiry. |
| homes, but to raise the profile of agents, this is | | | | - Showing Setup Properties, The agent begins the |
| at the direct expense of home sellers. | | | | tour by showing to the potential buyer few |
| - The payment of kickbacks from newspapers to | | | | run-down houses, in contrast to these first |
| agents can be as high as forty percent. This | | | | impressions even the medium quality homes he |
| rebate or credit is rarely passed on to the home | | | | shows him later on looks pretty nice. This trick is |
| seller. It is kept by the agent. | | | | based on a well known psychological principle of |
| - Home Owners lose millions through having their | | | | "Relative Perceptual Contrast". |
| homes undersold at auctions. Home sellers are | | | | - Reveal Information, By law the seller's real |
| being convinced by a rational that the price goes | | | | estate agent has a fiduciary responsibility to the |
| up at auctions. | | | | seller, and they WILL tell the seller everything you |
| But the reason the price goes up at auction is | | | | say, so pretend you are under police interrogation. |
| because it starts at a very low price. The truth is | | | | The first thing the agent will do is asking you how |
| that auctions get lower prices more often than | | | | high you are willing to go on the house. Don't fall |
| they get higher prices. | | | | for this trick. Just give them the price you want |
| Among agents, an auction is considered the | | | | to pay for the house minus 6% - 7% and if they |
| fastest and best conditioning method. | | | | ask how high you are willing to go, tell them that's |
| - False and misleading offers, Many agents submit | | | | it. |
| offers to sellers which are lower than the offer | | | | - Needless expenses, when buyers are told that a |
| actually made by the buyers. This is done to | | | | home is within their price range, they often spend |
| make the genuine offer look good when it is | | | | hundreds of dollars to obtain legal searches and |
| revealed later. It is a common deceit. At other | | | | building inspections. Later, when they discover that |
| times, home sellers are given totally fictitious | | | | the home was never within their price range, they |
| offers in order to convince them to lower prices. | | | | become emotionally upset and are often furious |
| - Home sellers lose a lot of money when agents | | | | at having wasted money needlessly. |
| use 'bait' prices to attract buyers. Agents indicate | | | | - Auctions, Buyers are often lured to auctions in |
| to homebuyers that homes may sell for a low | | | | the same way that sellers are lured by deliberate |
| price when they know very well that the home | | | | misrepresentation of the price Buyers are told |
| sellers would never want such prices. Agents say | | | | that the price will be low. Sellers are told that the |
| this is designed to attract buyers who can then | | | | price will be high. Great pressure is then applied to |
| be talked up in price. This ploy backfires on home | | | | both sides at the auction. The sellers are |
| sellers because it attracts many buyers who can | | | | pressured to reduce their price and buyers are |
| only afford the low price. The agents then say to | | | | pressured to pay more than they can afford. |
| the sellers that "this is the most the buyers will | | | | - Buyers are often led to believe they have |
| pay." The truth is that the wrong buyers have | | | | bought a home, only to be told later that |
| been attracted. | | | | someone else has paid a higher price for it. |
| - Open Inspections, Almost anyone can walk | | | | - Investment Advice, The statements made to |
| through a family home without identification. This | | | | buyers about the investment potential of real |
| reckless disregard for the personal safety of | | | | estate are often misleading. Some agents tell |
| home-owners is a serious ethical concern. Also, | | | | blatant untruths about the potential of real estate. |
| the more 'lookers' who can be attracted to an | | | | For many agents, it is always the "right time to |
| open inspection the easier it is to persuade the | | | | buy". |