Key Takeaways
- Verify an agent’s credentials and experience before choosing to work with them.
- Inspect properties personally and get a certified home inspection to uncover hidden issues.
- Be cautious of inflated property values suggested by agents to secure listings.
- Question agents claiming they have buyers lined up for your property without proof.
Most real estate agents are honest and ethical professionals, but some may mislead clients about their credentials, a property’s value or condition, or the level of buyer interest. Misrepresentations like these can be costly, so buyers and sellers should verify claims independently, ask probing questions, and check an agent’s experience and track record before making a decision.
Recognizing Misleading Property Descriptions
Real estate agents make money when they close on a property, so in order to promote a property they have listed, they are apt to use language that makes it as appealing as possible to potential buyers—even if what they’re saying isn’t entirely true.
Sometimes agents haven’t even seen the property for themselves and merely rely on information gleaned from tax assessments to prepare listings. Be careful not to fall for the old bait-and-switch.
Important
Buyers should ask plenty of questions and personally inspect the property, as well as get a home inspection done by a certified inspector.
Some agents may add verbiage to the listings, such as “BATVAI,” meaning “buyer’s agent to verify all information,” or “IDRBNG,” which means “information deemed reliable but not guaranteed.” These disclaimers place the responsibility for accuracy of the listing information on the buyer and their agent rather than on the listing agent.
Be sure to look at any property thoroughly and ask plenty of questions before putting in an offer. A home inspection by a certified inspector can reveal issues you may not see yourself and gives you the opportunity to ask to have certain repairs made before the sale is complete.
Identifying Inflated Property Values
It is no secret that homeowners want to make as much money as possible when they sell their homes. To secure a listing, real estate agents may recommend inflated values to properties, telling prospective sellers their properties are worth far more than they actually are in the market. To determine whether or not an agent has given a realistic listing price, check the recent sales prices of comparable properties in the neighborhood, or have an appraisal done to find the appraised value. Free web resources like Zillow or Trulia can also be a good place to start.
Spotting Claims of Imaginary Buyers
Real estate agents may attempt to lure property owners to list their property with them by insisting that they have the perfect buyer for their property already lined up. Asking for the name of the prospective buyer puts the agent on the spot, but at the same time, they are under no obligation to reveal personal details about their clients. Still, beware of any hesitation or negative body language exhibited by the agent when answering. Sometimes that perfect buyer is just a little too perfect—and does not, in fact, exist.
The Bottom Line
Real estate agents are generally honest and work hard to secure fair sales for their clients. However, it’s smart to watch for signs of dishonesty, such as misleading property descriptiones, inflated values, or claims about buyers that may not be real, so you can protect your interests and make informed decisions.