7 Things NOT To Tell A Real Estate Agent (Ep125)
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7 Things NOT To Tell A Real Estate Agent (Ep125)


When buying a property sometimes it can pay
to keep the little something up your sleeve. telling the real estate agent too much information
can cause you to pay a higher price for a property and put you in a situation where
you don’t have the maximum negotiating power that you could have. today i’m going to
look at seven things not to tell a real estate agent so you can make sure that you’re in
the best position when it comes time to negotiate. today’s episode is brought to you by OwnYourOwnATM.com.au
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to find out more information. so what are things that we don’t want to tell
our real estate agent and that we ant to keep up their sleeves or keep hidden away when
it comes time to buying a property or negotiating for property. Well the first thing not to tell your real
estate agent is that you’re in a rush. so maybe you just sold your property and you’ve
got a certain amount of time when you need to get into another property, otherwise you
can be in dire straits or in an awkward situation. you don’t want to let your real estate agent
know that you’re in a rush because they could use that against you. they could hold out
offers against you so that when it comes time you you got such a short time frame to buying
and to settle that you are are willing to pay more money just to get it within that
timeframe so you don’t want to let them know that you’re in such a rush to do it because
they can use that against you the number two not to tell your real estate
agent how much you are willing to pay. don’t give them your top figure again keep that
up your sleeve keep it hidden because what they’re going to do is they’re going to
firstly they’ll try and get you higher. but secondly they’re probably going to take
your top figure and use it as negotiating power with other potential buyers and say
well this person is willing to pay X amount and you know what you willing to offer for
the property they can try and force you into a bidding war now obviously if you’re in a
bidding war your probably going to have to offer your top amount in order to secure the
property but if things are a bit slow and you’re making an offer don’t make an offer
of 560,000 and say look here is my offer 560,000 but the maximum I’m willing to go to is
580,000 the real estate agents going to say awesome! this person is willing to pay 580,000
let’s see how close we can stretch them to that. their not going to say well 560 well
let’s run with that number three not to tell your real estate
agent is that you’ve just missed out on another property and you’re really upset
about it. If you’ve just missed out on a property and you fell you didn’t do enough
to get it, chances are that you are in a highly emotional state and you may go ahead and purchase
a rebound property and so by don’t keep your emotions within don’t get too excited don’t
don’t get too upset with a real estate agent don’t tell them are you so desperate to buy
because you just missed out on property. number four is that you have to have it. you
don’t let your real estate agent know that you are willing to buy this property at any
price. that you have a looked at 100 properties and you’re willing to pay over and above what
this properties worth because it’s absolutely perfect for you and your family. If they hear
that from you if they know that then they are going to continually push you to try and
get the highest amount. or they can get you in a bidding war against someone else so by
even if you do have to have it by staying calm cool and collected and not all letting
that our you can negotiate more effectively. It’s a hard thing to do but if you can do
it is going to help you. today’s episode is brought to you by OwnYourOwnATM.com.au
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investment option visit OwnYourOwnATM.com.au today. number five not to tell your real estate agent
is that you really have no idea about the market. No idea what a property is worth because
they can then advise you on what a property is worth and what the market is doing by taking
specifically examples that back up their argument even though the property market might be going
downhill fast even though the area might not be that great an area if you let them know
that you have absolutely no idea what the property market is doing well they might lead
you to think that the property market is booming or that you’re going to miss out even though
the property market is actually in decline and it’s a buyers’ market. so don’t let them
know that you have no idea preferably get educated do some research and find out exactly
what the area is doing number six is letting them know that you’re
an outside investor. Now I don’t think it is a bad idea to let a real estate agent know
that you are outside the area and you don’t necessarily know the area in full. But letting
them know that you’re an outside investor and you just want to buy some property in
the area well again they can use that to their advantage and they can spin things to you
to make it sound like as an outside investor this will be a great area to invest in “blah
blah blah blah” and then get you trapped into buying a property in an area that is
not necessarily going to grow. So you can say you’re from outside the area, you might
let them know that you thinking of moving to the area or you know you’re purchasing
it to move in the future. where the good spots and so forth. Don’t let them know you’re
an outside investor who has no idea about the area has to buy a property in a rush you
know you’re just not going to put yourself in the best position and number seven is that your don’t tell the real
estate agent your future plans to increase the value of the property. so maybe you’ve
got future plans to split the property in 2 and turn it into a dual occupanc.y maybe
you’ve got future plans to do an extension or you’ve got a creative way to turn a garage
into a granny flat. It’s only going to cost you $10,000 until you generate you a massive
amount of income each year. because by telling them your future plans two things could happen.
they could take your future plans and use that to sell to other potential buyers to
say you could do this you could convert this into a granny flat you could add this extension
you could just put a wall here and it would basically split into two different properties.
You don’t want to give away all your cards because they will use that to sell to other
buyers. and the other thing that they might do is actually use that up the value of the
property. If they can see a property valued at a certain amount of money when you put
$10,000 into it going to be worth $40,000 more well they might want to tap into some
of that profit that you’re going to get and say “well look if you pay $20,000 more you’re
still going to put in 10 grand but instead of getting 40 back you only get 10 backwards
and 10’s still pretty good and i’ll take 20 myself and for my vendor. so as you can see basically all I’m saying
is try not to give too much away and try not to put yourself in a position where the vendor
and the real estate agent of all the negotiating power against you and you have no negotiating
power against them. so I should really do an episode about how the negotiate and how
to get the price down or at least you make it feel like a negotiation even if you were
always willing to pay a certain amount. because at the end of the day is that back in forth
and if you just offer a certain amount then people I don’t be scared to just accept that
that always will be greedy when you get a little bit more so actually being an effective
negotiator you can actually make the vendor feel like they got a great deal even though
you will probably willing just to pay that money anyway Hope that makes sense and you are more videos podcasts articles
just like this one then head over to the blog at onproperty.com.au when really we released
a new episode every single day if you want the full transcriptions of this episode then
head over to onproperty.com.au/125 because of that episode 125 so until tomorrow remember
that your long-term success is only achieved one day at a time.

30 Comments

  • Shirlee Poulos

    He is right with applying these steps when working with a "real estate agent." However, Professional Realtors with years of experience would not trap their clients with those "tactics." It doesn't matter if they tag themselves "a high producer." There are those who stumble on a sale because they work for a world known real estate company. Sad. Would you go into surgery with a doctor who didn't have any credentials? Why would you gamble with your hard earned money or property to allow a "real estate agent" who put their license with a well known company AND hadn't been in the business for at least 5-10 years or more. How about an agent who didn't take educational courses, that would give them additional knowledge of license law, fair housing? Pretty scarry, I'd say. This guy is right on point when you are dealing with "just a real estate agent." But there are professionals and those Realtors…"don't have to make the sale." They want their clients to be comfortable with "their decisions" and take time..don't rush into such a large important investment. As a Broker/Owner of a family owned real estate company, we don't have to make the sale..We want the client to buy when they are ready and we provide the information for them to make an educated decision. Sorry for the lengthy message…But, this hit a hot button for me. This guy is so right!!!

  • Sandi Bisgood

    Yes, I'm another American … and wondered how much of the info I was reacting to was the result of being familiar with how things work here vs. Australia. Sounds like moving to a Buyer's Agent system would be a good thing for you Aussie buyers!

  • Shannon Everett

    I can't even listen to this insane lack of knowledge!!! We as Realtors cannot help serve you best if we do not know the whole story. Please do not take this to heart. He has not knowledge to back this up.

  • Greg Newman

    This guy needs to get a job! Maybe he's applying for a dishonest realtor! I'm a broker and don't listen to this guy. If an honest buyer wants open communication , then just be truthful with him or her (that's all).

  • Christiane Marshall

    I’m sorry you’re so suspicious of hard working agents. For the record, all of the terrible things agents are chomping at the bit to do to unsusoecting consumers are illegal and agents can be fined for doing them – steep fines. If you can’t trust your agent, find one who you can trust.

    If you are looking for a house, a buyer’s agent is your best friend. Give your agent as much information as you can so she can negotiate in your favor. Don’t tell the listing agent anything. His responsibility is to protect the seller and get the highest price for them. Your buyer’s agent’s responsibility is to you, to get you the best possible price and to help you understand the market, the process, and anything else that comes up while you are working together.

    Dual agency gets tricky because the agent is helping both. That is probably a time when you should ask a lawyer for help as the agent’s hands are tied somewhat. I’d say avoid dual agents.

  • Steve Johnson

    Just read "Listen, Americans" and it makes sense. If you are speaking to a listing agent, this is good advice. Australia needs to get buyers agents who will represent their best interest. Sounds like a tough market to buy a house.
    Here was my initial response;
    This awful advice unless your using an agent who you feel is a snake. Use someone you trust and if you feel that you have to set up an adversarial relationship from the get go, find another agent. A buyers agents job is to get their client the very best house, at the best price, without losing out on a property that they want to purchase.

  • Juan Tapia

    Only if it was easier to buy and sell a home with out an agent. These people are just over paid and dont even know how to negotiate.

  • Lisa Stanley Realtor

    If you are a buyer, you would not want to tell the listing agent these topics. Buyer's get an Accredited Buyer's Representative. Our services are not cost to you.

  • Joe Eves

    I see where you are coming from….But if you live in America. You really want to be properly represented find an agent that is honest and trustworthy and has your best interest. These tips don't really help you when you are buying/selling in America. If you don't feel like you can talk with your agent, the best tip I can give is, get a new agent.

  • Ralph Morgutia

    This guy gives bad advice. Sounds like he is projecting. Your agent represents your best interests, with holding information and you don't get what your looking for. Just find a good agent.

  • Sugar Free

    How about 7 things to tell a real estate agent when you are listing your house. I have a feeling they are the same 7 things but for different reasons. i found my realtor to be too pushy.

    What is a granny flat?

  • Rodger Rascall

    I had a friend who got a big settlement in a divorce and told the Real Estate agent that they were loaded and how much they had. Guess what, the real estate agent showed them over priced properties and they got totally ripped off.

  • Blake Nicholes

    Your Realtor is there for you – we have a fiduciary duty to protect our clients. When I know my client's buying power is $200,000 we look for properties starting at $175k. I never want him to pay at the top of his budget. But having the pre-qual letter higher gives the seller confidence that my buyer can for sure close on the home. Sellers and their agents get nervous when they see a buyer at the top of their budget and will lose if there are multiple offers. Also, we have a conversation about what he wants his payments to be. My goal is to keep my client in their home and have a client for life. I have never once put an offer on a home at a fair market price only to have the seller's agent whine – "but they're qualified for $30,000 more – you have to offer as much as you can afford!" LOL That agent would be out of the business real quick.

  • Eternity Bliss

    So hot. And thank you. Im negotiating the sale of my home now, and my next buy. And im really sweet and friendly so I always have to tell myself to be quiet and dont tell the potential buyers or their agents any information that will help them get a better deal. Example. I see all the flaws in my house and I could easily go threw my house and point out the flaws and make excuses. Like 'oh these floors are so ugly.' My house is beautiful and valuable and thats all they need to know from me.

  • Kenneth R. Kim

    False information..

    'For you to win, others don't have to lose'

    More you reveal your needs, you get the result you want.

  • Angel Valdivia

    Scroll down and find this interesting fact: 80% of the people who disagree are, PRECISELY, realtors. That doesn't tell you the guy is right?

  • Coke Man

    And how many written offers have you got? A real agent gets written offers and has a marketing plan to encourage that.

  • Viper Vapors

    As A Realtor, and as a person, I have to say that the things he says is most likely because he has either done these things to clients or he has experienced them himself. There are "snake" people in every industry. I have worked with several "snake" Realtors and this that he speaks of is nothing. Even if you don't tell your Realtor anything, they can still do all of this and more to you. Choose a Realtor that you have gotten to know and trust by conversations and recommendations. Integrity is everything to me, but some agents don't care what happens as long as they get a check. I do whatever I can for my clients and I never have to worry about money. If you do a good job, money will flow. Focus on the clients needs and be a good agent. Get a broker involved when dealing with "snake" agents. Most will not want to lose their license.

  • RealEstateByChance

    Not going to lie, I would NEVER even think this way. Who comes up with these scenarios? It sounds like suggestions from experience. If you have been through scenarios like this then you need to disassociate from these types of agents.

    In America, we are held to a very strict code of conduct. We are punished very harshly if we don’t put our clients needs first.

    Never hold information from your Realtor. If they do use information against you, go to their principal broker or the other agents principal broker. If they don’t do anything, go to the states commissioner or an Attorney.

    Cheers 🥂

  • Msmmmorales

    THANK GOODNESS ALL this CRAP does NOT apply in the USA, this IS in AUSTRALIA. ALL these will motivate an ETHICAL agent (do your homework for the best agent) in the USA to get you the BEST deal possible. Useless info for the USA, MAYBE in Australia it MIGHT help.

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