5 things you should never say to a real estate agent

When you’re going through the home buying process, you’ve got to be strategic. It’s important that you do your own research, rather than just blindly following what your real estate agent or mortgage broker suggest.

Bear in mind, that at the end of the day, real estate agents want to make a sale. So sharing too much information with your agent can put you at a disadvantage when it comes time for negotiations.

Learn how to play the real estate game by knowing these 5 things you should never say to a real estate agent.

1. “I need to find a house ASAP”

  • Don’t reveal your weakness! It can make you a target for emotional pressure during negotiations. Try to keep your comments neutral about your situation. Meighan Hetherington, director of Property Pursuit Buyers' Agents says that homebuyers should consider renting if they don’t find the perfect home in the right time frame. That way, you won’t feel pressured to make a poor choice, or pay too much just to solve what is a short-term problem.

2. “We don’t know much about the area”

You don’t want to appear naive. An agent is going to focus on the positives of the area. So make sure you get to know the area yourself. Try checking out the area at different times of the day and on different days of the week. This will help you get a feel for noise, traffic, and general activity during work hours and weekends.

3. “We have $500,000 to spend”.

It’s best to avoid disclosing your budget. It’s better to put it this way - “We hope we don’t have to spend more than $500,000”. You want the agent to be confident you can afford the property but you don’t want them to know exactly how much you are prepared to spend.

4. “Could you help us organise a mortgage”

It’s a good idea to keep a clear Chinese wall between the agent and your finances. Your financial situation is something you should keep separate from your home buying process and the real estate company you are dealing with. Do your own research to get quotes for mortgages.

5. “What do you think the house is worth?”

A house is worth what you and the seller agrees on, not what the agent thinks it’s worth. Anything the agent says will most likely reflect what they believe it should sell for.

At the end of the day, it’s up to you to decide what you’re prepared to pay and the seller will decide if that is acceptable.

For more home buying tips, check out The Summit Homes Blog.