Buying or selling a home can feel like navigating a maze of new jargon, policies, and procedures. And while real estate agents can serve as valuable guides through this princess, they’re still human — and humans can be misinformed, exaggerate, or even lie.
Here, we’ll peel back the layers of these common deceptions from real estate agents so you can be on your guard and make home-buying decisions with confidence.
If you’re over 50, take advantage of massive discounts and financial resources
Over 50? Join AARP today — because if you’re not a member you could be missing out on huge perks. When you start your membership today, you can get discounts on things like travel, meal deliveries, eyeglasses, prescriptions that aren’t covered by insurance and more.
How to become a member today:
- Go here, select your free gift, and click “Join Today”
- Create your account (important!) by answering a few simple questions
- Start enjoying your discounts and perks!
Important: Start your membership by creating an account here and filling in all of the information (Do not skip this step!) Doing so will allow you to take up 25% off your AARP membership, making it just $12 per year with auto-renewal.
“That is (or isn’t) up to code”
Real estate agents get some training in building code, but this isn’t their area of expertise. Moreover, local building codes change every few years, so your agent’s knowledge of building codes may not be current.
“It’s free to use an agent for the buyer”
Ultimately, every dollar spent on a house comes from your pocket. So, while the real estate agent’s commission shows up on the seller’s side of the closing documents, it’s baked into the price of the home.
“There’s nothing wrong with this house”
A real estate agent isn’t an inspector. Even if the house looks sound, getting an inspection is still worthwhile. After all, it’s not your agent who will be cleaning up mold or snaking backed-up plumbing if you don’t do your due diligence.
Resolve $10,000 or more of your debt
Credit card debt is suffocating. It constantly weighs on your mind and controls every choice you make. You can end up emotionally and even physically drained from it. And even though you make regular payments, it feels like you can never make any progress because of the interest.
National Debt Relief could help you resolve your credit card debt with an affordable plan that works for you. Just tell them your situation, then find out your debt relief options.1
How to get National Debt Relief to help you resolve your debt: Sign up for a free debt assessment here. (Do not skip this step!) By signing up for a free assessment, National Debt Relief can assist you in settling your debt, but only if you schedule the assessment.
“I’ve already got a buyer for your home”
Even if your agent has an interested party waiting in the wings, nothing is solid until they sign a contract — and even then, contracts often fall through. Don’t let a phantom buyer be the sole reason you select your real estate agent.
“This house is in an up-and-coming neighborhood”
Translation: The neighborhood hasn’t come up yet and is less desirable.
While your agent may be right about the improvements and upward trends, they can’t predict the future and will have little incentive to care once you’ve bought the house and paid their commission.
Trending Stories
“If you ask for contingencies, you’ll lose the deal”
While contingencies can be a hassle for sellers — especially in a hot market — it’s worth protecting yourself in every offer you make.
A great deal that doesn’t appraise well or has other issues you’ll be paying for later isn’t a deal at all. Plus, if you don’t ask, the answer is always no.
“It’s always a good time to buy”
Tell that to the homebuyer who closed in 2007 only to see their home value plummet the next year. The same goes for the buyer who paid 18% interest on their mortgage in 1981.
There is such a thing as a bad real estate decision, and a significant element of that is timing.
“You’ll never sell your house as a FSBO”
Your agent may cite statistics showing that FSBO (for sale by owner) houses sell for much less than their agent-assisted counterparts.
While this data may be factual, it masks the fact that half of FSBO sellers already know the buyer and may offer a friends-and-family discount.
FSBO is also more prevalent in rural areas where home values are lower. In fact, 13% of homes are sold via FSBO.
“Real estate prices only go up”
This tends to be true for real estate as an asset class. However, that doesn’t make it true for your house over the next year, five years, or even 10. Your home's value can go up, down, or sideways.
Earn cash back on everyday purchases with this rare account
Want to earn cash back on your everyday purchases without using a credit card? With the Discover®️ Cashback Debit Checking account (member FDIC), you can earn 1% cash back on up to $3,000 in debit card purchases each month!2
With no credit check to apply and no monthly fees to worry about, you can earn nearly passive income on purchases you’re making anyway — up to an extra $360 a year!
This rare checking account has other great perks too, like access to your paycheck up to 2 days early with Early Pay, no minimum deposit or monthly balance requirements, over 60K fee-free ATMs, and the ability to add cash to your account at Walmart stores nationwide.
Don’t leave money on the table — it only takes minutes to apply and it won’t impact your credit score.
“We have multiple offers on this property”
It may not be ethical to misrepresent the interest in a given property, but it does happen, and it’s difficult to verify. Don't be deterred even if the seller’s agent says they have multiple offers. It can’t hurt to throw your hat in the ring.
“Your house is worth $X more than the other agent said”
Agents will often overestimate the value of your home to get you to list with them. Make sure they give you a comparative market analysis (also called a CMA or comps) so you can verify where they’re getting their price estimate from.
“I specialize in __________ homes”
Do they really? An agent with a true track record in a specific type of home or with a particular demographic of buyers won’t be shy about showing you their recent sales or giving you referrals.
By checking their portfolio of past sales, you check that you’re getting the experience you want in an agent.
“You’ve got to see this house — it’s perfect!”
“Commissions are non-negotiable”
Nearly every charge and fee in real estate is negotiable (except those charged by the government, such as recording fees and taxes). Agents can cut their commissions to get business, especially in a seller’s market.
“It’s a great time to buy a house”
That statement may be true of the real estate market in general. But is it a great time for YOU to buy a house? Your agent doesn’t know your financial situation, budget, or risk tolerance. Just because the market is hot doesn’t mean it’s the right time for you.
Bottom line
There are plenty of ethical, helpful, knowledgeable real estate agents in the world, but there are also a few rotten eggs that will stretch the truth to get a listing or make a sale.
Be on the lookout for these deceptions and do your due diligence when selecting a real estate agent to prepare yourself financially, whether you're a buyer or a seller.
Lucrative, Flat-Rate Cash Rewards
FinanceBuzz writers and editors score cards based on a number of objective features as well as our expert editorial assessment. Our partners do not influence how we rate products.
Wells Fargo Active Cash® Card
Current Offer
$200 cash rewards bonus after spending $500 in purchases in the first 3 months
Annual Fee
$0
Rewards Rate
Earn unlimited 2% cash rewards on purchases
Benefits
- Low spend threshold for its welcome offer — $200 cash rewards bonus after spending $500 in purchases in the first 3 months
- Cell phone protection benefit (subject to a $25 deductible)
- Can redeem rewards at an ATM for literal cash
Drawbacks
- Foreign transaction fee of 3%
- No bonus categories
- Select “Apply Now” to take advantage of this specific offer and learn more about product features, terms and conditions.
- Earn a $200 cash rewards bonus after spending $500 in purchases in the first 3 months.
- Earn unlimited 2% cash rewards on purchases.
- 0% intro APR for 12 months from account opening on purchases and qualifying balance transfers. 19.74%, 24.74%, or 29.74% Variable APR thereafter; balance transfers made within 120 days qualify for the intro rate and fee of 3% then a BT fee of up to 5%, min: $5.
- $0 annual fee.
- No categories to track or remember and cash rewards don’t expire as long as your account remains open.
- Find tickets to top sports and entertainment events, book travel, make dinner reservations and more with your complimentary 24/7 Visa Signature® Concierge.
- Up to $600 of cell phone protection against damage or theft. Subject to a $25 deductible.
Subscribe Today
Want extra-cash moves to come right to you?
Stop browsing endlessly. Get proven ways to earn pocket money, help cover rent, and crush your debt — sent to your inbox daily.