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The top 5 lies that Realtors tell

Written by Posted On Friday, 30 October 2015 09:51

One of the biggest shocks of my real estate career was learning that public perception of real estate agents is poor. Not just “poor,” but bottom of the bourbon barrel poor.

Photo of woman with fingers crossed behind her back.

Do you wonder if your Louisville Realtor is lying to you? Look out for these Top 5 Lies that Realtors Tell.

This 2009 Harris Poll shows real estate agents/brokers at, or near, the bottom of every occupation tested. Ouch!

I had a hard time believing this given our family agent, a wonderful man, had a servant’s heart and was incredibly knowledgeable and hard working.

So you mean, all agents aren’t like our Realtor Jim?

Apparently not, my friends. Thus, the need to call out the bad behavior coming from some in our profession. Let’s shine some light on the dark underside of the real estate marketplace.

TOP 5 LIES REALTORS TELL

Without further ado, let’s get to the rankings!

1. “You’ve got to see this home, it’s a gem!”

puff·er·y: (noun) undue or exaggerated praise.

I think we all saw this one coming. When an agent says, “This home is beautiful!” what’s the first thing you think? “Uh huh, sure it is.”

There is a challenge however. The listing agent’s job is to promote the home they have under contract. No one is going to want to see, “This mildly attractive rambler with a decent sized family room and almost no updates in the kitchen. Schedule your showing today!”

What then follows can be, A) highlighting the home’s best features, B) stretching the truth to unbelievable lengths, or C) claims that warrant legal reprimands.

(The correct answer is A.)

Recommendation: Today’s home buyers are better equipped to combat this lie because of all the online photos. Also, I don’t think it’s out of order for other real estate professionals to kindly correct outrageous puffery when they find it.

2. “I actually have a buyer client that would be interested in your home. You should list with me!”

There are a million and one ways to bend words in order to take advantage of people. We’ve all heard them.

Here’s one that I don’t think, in the history of real estate, has ever worked out.

Recommendation: If you are interviewing listing agents and one brings this one out, reply quickly with, “Oh great! What is his name?” If you experience even the slightest pause, that’s the agent’s brain on speed-dial trying to pull up a name that might fit the bill.

3. “There’s a great deal of interest in this property.”

Not all real estate agent lies are told to clients. Here’s one that Realtors tell to other Realtors.

The hope is that the Realtor will share this fiction with their clients to pique their interest. Their thoughts become, “If other people want to buy this house, it must really be great.”

The agent that tells this lie might have an even greater lie on deck. “We have an offer coming, so you tell your clients to hurry!”

Tsk tsk. If only were there was an instant replay that we could all refer to, in order to chronicle which agents lie and how much.

Recommendation: Be very skeptical of this one, unless another real estate professional can confirm the claim.

4. “I’ve done the CMA and your home is worth $XXX,XXX.”

This lie is perhaps the most challenging one on our list. Because there is no verifiable value to put on a house, there’s a great deal of flexibility when it comes to setting market value.

In fact, if you hire two appraisers on the same day, it’s not unheard of for them to come back with values as far from one another as 10 percent. True story: I received appraisals just two years apart on my personal home that claimed my house lost 11.2 percent of its value, this during a time that the market was actually moving slightly higher. Odds are both appraisals were off by a good amount.

All this to say, pricing a home can be a challenge. But that doesn’t stop some Realtors from lying and telling a prospective client that their homes is worth more than it truly is just to get the listing.

From Article 12 from the Realtor’s Code of Ethics:

REALTORS® shall be honest and truthful in their real estate communications and shall present a true picture in their advertising, marketing, and other representations.

Funny how this might be “forgotten” when there is a potential to earn some cash.

Recommendation: The best valuations come from trustworthy Louisville Realtors or impartial appraisers using a manually adjusted competitive market analysis (CMA). Ask to see their work!

5. “It’s a great time to buy a house!”

Without transactions, agents have zero earning potential. The market somewhat self-regulates but there is an inherent push for more.

The truth is that selling your home and buying your next home are two separate deals that are likely at opposite ends of the financial see-saw. So, if it is truly a great time to be selling, odds are it’s not the best time to buying… and vice versa.

Recommendation: Also take into consideration whether you’re moving from a lower priced home into a higher one and weigh that with what the market is doing. Each deal should be evaluated on it’s own merit. Then, take both outcomes and combine them.

NOT SO FAST, CONSUMERS LIE TOO

Want to know something scary? Home sellers lie too. “Has your basement ever leaked?” a diligent agent asks, only to hear a quick, “No.”

When the buyer’s home inspector invalidates that response the home owners feign ignorance. I’ve seen it more than once, and it’s actually against the law when it comes to truthfully completing the required Seller’s Disclosure.

As it turns out, so do home buyers. There’s a famous industry saying, “All buyers are liars.”

Try a few of these on for size.

  • “I have no interest in new construction, definitely want to purchase an existing home.”
  • “Oh sure, we can afford this home. Our loan officer is my uncle and he says we’re good.”
  • “$XXX,XXX is the highest I can go.”
  • “We appreciate all you’ve done to help us in our home search, we’ll definitely use you to buy our home once we find it.”

“This was the most unkindest cut of all.”

Hopefully this discussion will lead to a more enlightened marketplace where agents, buyers and sellers can all interact with more integrity. At least, until they put truth serum in our municipal water source.

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Tre Pryor

TrePryor.com is an Internet-veteran turned tech-savvy, Louisville real estate advisor and Realtor with ReMax Champions. A top Louisville agent, you can find his work here at InsiderLouisville.com, LouisvilleHomesBlog.com or follow him on Google+ or Twitter. Tre can be your Louisville Realtor!

www.TrePryor.com

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