Buyers Beware! Five common tricks real estate agents user – Buyers Agent Tips from Bryce Holdaway
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Buyers Beware! Five common tricks real estate agents user – Buyers Agent Tips from Bryce Holdaway


Today I want to talk about, from the buyers’
perspective where they should be beware of some of the sneaky tricks that real estate
agents employ to get more money out of them to pay more because ultimately, what we need
to understand is that the real estate agent’s job is to get a premium price for their client,
who is the seller. So if we take a step back when someone is deciding to sell a property,
quite often they might get two or three agents into their living room to decide whether or
not which of them would actually sell the property on their behalf. So they are all
doing a sales pitch and one of the parts of the pitch is the agent saying, “Well, I would
get you the best price because I can negotiate really well, I can market really well and
I can attract the most amount of buyers to your property so that I can achieve that end
game.” So it is important that the buyer understands this because quite often they don’t see that.
So then when it comes to market, they are trying to get the property for the cheapest
price possible but their opposing side is the real estate agent. So it makes sense that
the real estate agent is going to employ some tactics to do that but the buyer should really
beware of those. And the number one, without doubt a sneaky
trick that real estate agents employ is underquoting. Now, if you think about Adelaide for example,
they would give you a price range, call it $650,000 to $690,000, chances are you are
going to buy it between $650,000 to $690,000. But in Melbourne or Sydney for example that’s
not the case. Quite often it can be 10% – 25% below where the actual property would go.
Now the real estate agents has a saying, “Quote it low, watch it go. Quote it high, watch
it die.” So they actually have an incentive to create competition because if two people
are fighting for a property, they can get that premium price that they have promise
the vendor in the listing presentation. So if they quote it nice and low, they can attract
more people, ideally from a lower price bracket and bring it to auction or even a private
sale and get them fighting it in a battle of the fittest and who has the deepest pockets
and who is actually going to win on the day. But why is it a sneaky tricks for the buyer?
Because they can easily led to believe if it was $650,000 plus, they may reasonably
be able to buy it between $650,000 and $670,000 but ultimately, it’s probably always going
to go for $670,000, for example. The poor old buyer gets a building inspector, get the
solicitor to check the contract for them, they invest a lot of emotional capital into
the purchase but from Day One they were never in the hunt.They’ve spent money on all of
these services and they have also spent some of their precious time. So the Number One
sneaky trick that a real estate agent does is underquoting. A kind of a lead on from that is the second
sneaky trick that they do is when you ask them, “What’s the price is?” they stay very
very vague on the price. They may say something like, “It is the first week of the campaign,
we haven’t had many buyers through so we are just gauging what the market is willing to
pay.” But they know very well where that price band is because they told the vendor in the
lounge room during listing presentation so they do know the answer to that but they stay
vague for a reason. Again, because they want to create maximum competition so don’t be
surprised if you ask a real estate agent a direct question and you don’t get a direct
answer because it’s their job to try and stay vague to create some more competition. The third sneaky trick that often comes up
is they use the tactical fear of loss. As soon as they know that you are slightly interested
in the property, it’s amazing how quickly there’s another buyer. In fact, there’s actually
another buyer who has just shown some interest or it might be as simple as, “Hey you know
what, I know you like this but I’ve got another buyer coming through this afternoon for their
second look.” And it creates this feeling of missing out. So it taps into the emotion,
it taps into your fear of loss and therefore you may be prepared to pay an emotional price
for the asset. So my advice on that one is don’t necessarily fall for that tactic because
chances are there might be another buyer but equally, it might just be a tool that the
agent is using. So a way to arm yourself from that is make sure you are rock solid on knowing
what the value should be because if you do find the property that you like, you can act
quite quickly so that you can make sure that you get it but don’t necessary fall for it
each time because they real estate agent is using that for a sneaky trick to get you to
pay more. The sneaky trick number four is when you ask
a real estate agent as a property investor, “How much do you think this property will
achieve in rental?” and often they have this blank look, “Ooh.. about $500 a week.” And
maybe it’s the first time that they even thought about that question because they may be thinking
that it’s going to be an owner occupier that will buy it and you might be relying on $500
a week but the reality is the market is only paying for $430. So the sales agent is incentivised
to make the property look really great. So you need to do some independent research to
make sure you know exactly what does rental estimates should be and another part of that
is if they offer a rental guarantee which says that, “When you settle on this property,
we will guarantee that you would get your $500 a week.” That should be a big alarm bell.
If you are buying a property that is in demand by the locals and at fair market value, there
should be no need for a rental guarantee. So you got to ask yourself, if they are offering
one, why is that? Straight away you should be unpacking that and try to find out behind
the veil what’s really going on and what is incentivising them to offer a rental guarantee
when the market should just be working for you in it’s normal operation. And the last one, number five, is be careful
of the pre-auction offer. If the real estate agent thinks that the buyers are liars and
most buyers keep their card close to their chest and don’t tell them how much they are
willing to pay, what the agent is incentivised to do is get you to make a pre-auction offer
so they would at least know where your interests are at but they may have no intention or whatsoever
on selling prior to auction. So if you going to make a pre-auction offer, you need to understand
a lot more information about the vendor’s motivation. Because even if the vendor is
motivated to sell prior to auction, the agent may not be because you think about it. It’s
free advertising for them, it’s street theatre to actually go through the auction and quite
often the neighbours would come and watch the auction in place. So therefore if the
agent performs well as an auctioneer and they get a great result, they may get their next
listing from the neighbour, the guy down the road or two streets away. So they are highly
incentivised to actually go to auction. If you are going to make a pre-auction offer,
you need to understand the vendor motivation very well and understand that it might just
be what the real estate agent is using to tease out how much you are prepared to pay
because they might come back to say, “Actually, the vendor just wants to take this to auction
now but they do know how much you are prepared to pay.” So there is a few little sneaky tricks that
the real estate agents would employ to get more money out of you and if understand what’s
going on, you can be in a better position to make sure you don’t fall for those tactics.
Now the way you can guard yourself against those tactics, as I say it all the time, it
know your value. If you know your value is, you are not going to be seduced by what the
real estate agents is telling you and you if you don’t know your value, then employ
a professional. Go get a valuer who can value the property for you and tell you what it’s
worth. Go find a real estate agent who you know who doesn’t have the listing and you
can talk to. They may have actually missed out on the listing and they are quite prepared
to tell you how much you should prepare to pay. Or of course, talk to a buyers agent
who does this everyday and they know the tactics that the real estate agents is going to employ
and they don’t fall for it. So hopefully, there are a few tips there for you to, “Buyer
Beware” and understand what the sneaky tricks are that the real estate agents employ to
get more of your money.

27 Comments

  • Michael Allott

    Hi I'm a real estate agent and have no problem in you making this video but when you say we are sneaky is implying we are dishonest

  • Rose Braude

    Great video! says it like it is. That is a free market to buy and sell in : if Sellers use a selling agent for their expertise , buyers should indeed look to buyers agents to help them through the points Bryce has made.

  • Adam Murphy- Disney Area Realtor

    If I don't have an offer in writing, Then I don't have an offer. All this I might have an offer game is for the birds. But you can't deny the market is hot I'm closing on a house next week that sold for 3% over asking.

  • Jane Dawson

    When all you buyers are looking to sell on in the future, I would be interested to know how many of you are not bothered about achieving the maximum amount possible 😂😂😂😂

  • Bobby Stacy

    Bryce, look at me… Look at me Bryce… Look into the camera.
    This is not an interview, this is a video sales presentation. Dis-
    regard all the monkey-see, monkey-do of your peer group, the
    procedure that you're using is senseless. Tweak your chroma-
    key as well, it is not working for you… or just find a real and ap-
    priate background to sit or stand in front of. Hope that helps.

    Bobby

    .

  • Eric Ritchie

    There is someone else interested in it. Used car sales man trick 101. I had a snake car sales man tell that once. I said, oh yea that's you're one and only lie you're going to tell me today. If I smell another lie I'm walking out of here. Needless to say his bullshit stops.

  • Katrina Joseph

    I was cheated by nrephilly.com . This video is very useful for future. nrephilly people are a bunch of cheaters.

  • Tripping On Trails

    Actually, your representation of RE agents is pretty off. Being a realtor is not about Trickery. And if one feels they are being tricked, they should contact that agent's broker in charge, or the real estate board. The laws for a RE agent is about protecting the client and not the agent. An agent representing a buyer has a responsibility to the buyer, just like a seller's agent has a responsibility to the seller. This is for the protection of the people who are selling their home or buying their home individually. AND in the case that the same agent is representing both the buyer and the seller, they are legally bound to inform all the parties, so that NO ONE is left in the fog, and can make good decisions based on truthful information. The seller's agent is not legally allowed to encourage or persuade the seller to do anything with their price. In fact, if a load of offers comes in at once, the seller's agent must hand them to the seller in no particular order so that the seller can view them and decide whose offer they want to accept. They sometimes choose an offer less than others presented for personal reasons, and it has nothing to do with the seller's realtor. The role of the agent is to help the buyer or seller through all the bumps of the pathway to achieve their desired goal. It is not about secretly trying to screw the buyer or seller while they are trying to purchase or sell their home. And if one is looking for an agent, they should expect that agents will want to show them their value and how they got to be valuable so that the client can pick the right person for them.

  • Tripping On Trails

    the agent's job is not to get a premium price for the seller, it is to help the seller prepare their home for selling, stage the home if necessary (move the furniture around or clean it professionally to look really great), help the seller decide on a price based on comparable homes in the area. They are not to persuade or use trickery or magical witchcraft to put a spell on everyone involved… and if you see that happening, just run. OH, and the role of someone with a buyer is to present ready, wiling, and able buyers to the seller (or agent), and there shalt be no sorcery or magic trickery between the two. Just a lot of work to help two parties achieve their goals in harmony if possible.

  • Manny De Castro

    Great video,question can a realtor tell the buyer that there is a better offer,just to get the buyer to offer more.there his % commission is more?

  • Shannon Kelly

    Spoken by a true fool. He should get his Real Estate License before speaking nonsense that isn't the norm or even legal for that matter.

  • ivica351

    Agents are crooks. Im glad that the markets changing making it harder for agents to make quick money. Also there will be a few BMW's for sale with low klms 🤣

  • Kenneth R. Kim

    Wow you are soo cynical.. there's are no sneaky tricks. Wtf is wrong with you

    Do you know there are laws and regulations we all follow? You can't cheat people and sellers only need to worry about their net sale price. It's about supply demand.

    You are the type of guy that goes around spreading false rumors to manipulate people to your advantage

  • Kenneth R. Kim

    You should see how it goes when FSBO and average people try to close a deal.. he need to be punched in the mouth and stay off the camera

  • Dyra Van

    Getting the highest possible price for the seller is the agent's job, yes you're right. But the word sneaky sounds dirty. We put vendor interest above anybody including ourselves. We are not interested in just one sale in our vendor's life.

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