Agents work for the seller. Knowing their tactics works for you.
Real estate agents are professionals, and most of them are honest. But their job is to get the best outcome for the seller, not for you. Understanding the common real estate agent tactics that can mislead buyers will help you make clearer decisions, negotiate smarter and avoid costly mistakes when buying a home.
The quoted price trap
One of the most common real estate agent tactics is quoting a price that is lower than what the seller actually expects. Agents do this to attract more interest and create competition among buyers. The property looks like a bargain, more people show up to inspect it, and the auction or negotiation process drives the final price higher than the advertised range suggested.
The best way to protect yourself is to research comparable sales in the area yourself. Look at what similar properties have sold for in the past six to twelve months, not just what they were listed for. This gives you an independent view of the property’s market value before the agent’s marketing influences your thinking.
Your deposit and borrowing budget also depend on accurate price expectations. Understanding your borrowing power before you attend inspections means you’ll know quickly if a property is realistically within reach.
The other buyer
Being told there is another interested buyer is one of the oldest real estate agent tactics in the book. The goal is to create urgency. Agents know that the fear of missing out can push buyers into making faster decisions, sometimes without doing proper due diligence.
When you hear this, take a breath. Ask specific questions: How many offers have been submitted? When does the vendor want to make a decision? Are contracts being exchanged today?
You can also gauge genuine interest levels yourself. Spend time outside an open home and count how many groups actually inspect the property. If the agent claims high interest but you counted three groups in two hours, take their claims with some scepticism.
Rushing into a purchase because of real or manufactured competition is one of the most common ways buyers end up overpaying. Take the time you need to assess the property, check your finance and make a considered offer.
Cooling off periods
Some buyers are told they cannot have a cooling off period, or that they cannot extend it. Both of these claims can be misleading.
In most Australian states, residential property purchasers are entitled to a cooling off period after signing a contract. This gives you time to conduct building and pest inspections, confirm your finance and exit the contract if something is wrong, usually at a small cost.
Agents may push you to waive the cooling off period to create a sense of commitment. This is risky. If a building inspection uncovers a significant problem, or your home loan approval is delayed, having no cooling off period can leave you locked in or at risk of losing your deposit.
If your loan application is being processed and it takes longer than expected, vendors are generally open to extending the cooling off period. Keep them informed of your application’s progress and request an extension if needed. The important thing is to communicate early, not at the deadline.
For more on the questions you can ask to take control of the buying process, see our guide to questions to ask a real estate agent.
The easy approval myth
A real estate agent is not a lender and does not know whether your home loan will be approved. When an agent tells you that you’ll have no trouble getting finance, they are usually trying to encourage you to proceed without pausing to confirm your lending is in order.
Do not commit to purchasing a property until you have a genuine pre-approval in place. Not all pre-approvals are created equal. Instant online pre-approvals are essentially unverified and carry little weight. A formal pre-approval involves a lender or broker reviewing your actual financial documents, assessing your borrowing capacity and confirming conditional approval.
Knowing the common reasons home loans get declined is also useful preparation. Issues like irregular income, undisclosed debts or a low credit score can catch buyers off guard if they haven’t confirmed their position beforehand.
At Serres Property Finance, we provide pre-approvals that are properly assessed and carry real weight. Being pre-approved before you make an offer protects you from committing to a purchase your finance cannot support.
How to protect yourself
The best protection against misleading real estate agent tactics is preparation. Buyers who arrive informed, with finance confirmed and a realistic view of property values, are much harder to rush or mislead.
Common questions
Q: Are real estate agents allowed to lie to buyers in Australia?
Real estate agents in Australia are bound by consumer protection laws and professional codes of conduct that prohibit misleading or deceptive conduct. Outright lying is not permitted. However, agents can shade their answers, withhold information or frame things in a way that creates a misleading impression without technically stating a falsehood. Asking direct, specific questions and seeking independent advice are your best protections.
Q: What is a cooling off period and can it be extended?
A cooling off period is a set number of days after signing a property contract during which you can withdraw from the purchase, usually at a small cost. Cooling off periods vary by state in Australia. They can generally be extended by agreement between buyer and vendor, particularly if your home loan approval is taking longer than expected. Communicate with the vendor early if you need more time.
Q: Should I get pre-approved before attending open homes?
Yes. Getting pre-approved before you inspect properties means you know your realistic budget, you can move quickly when you find the right property, and you won’t be misled by an agent’s reassurances about finance approval. A proper pre-approval involves a review of your actual financial documents, not just an online estimate.