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