15 Lies Realtors Have No Problem Telling You

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.

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.