Do real estate agents lie about offers?


Are real estate agents hon­est, do they bend the truth or are they just try­ing to do the job without being sued?

Some­times I won­der why real estate agents have con­sist­ently had a bad repu­ta­tion over many years.

In my exper­i­ence of work­ing for dif­fer­ent real estate agen­cies I have come across the good the bad and the ugly.

But I just want to put one thing out there. property buyer

We are not just money hungry vul­tures look­ing for our next vic­tim to sink our claws into, this is what the media would like to per­ceive us as.

I am not against the media as they are just look­ing for that one story that gen­er­ates the public’s interest.

For the most of us we are reg­u­lar people work­ing a job, doing our best to be the best, in a very com­pet­it­ive industry.

It is nor­mally that one rogue real estate agent that quickly gets caught out by the ATO, or fair-trading because of the impossible to cover-up paper trail.

I will admit most of us don’t have degrees and haven’t always been suc­cess­ful.

We have failed at many things but what we do know is real estate and people.

Some of the best real estate agents were never the best at school but found an avenue by which they could suc­ceed

It is a heavily regulated industry

The para­noia of the real estate industry “please don’t sue us, we were only try­ing to help.”

To be quite hon­est a lot of us are just try­ing to do our job, to the best of our abil­ity without being sued. 

Today because of these rogue real estate agents, our industry is heav­ily reg­u­lated and we can be audited without a moment’s notice.

In fact because of the new types of law­yers out there will­ing to work on a “no win no fee” basis, real estate agents are even more para­noid about say­ing and doing the wrong thing by anyone.

Real estate agents accord­ing to the law are in a pos­i­tion of a “high degree of trust” (this is funny because we have been voted one of the most trus­ted pro­fes­sions).

This is why when a real estate agent that commits a crim­inal offence we are judged more harshly than the aver­age per­son, this is called a “breach of trust”.

The more breach of this trust the more of an impris­on­ment for us real estate agents.

Ignor­ance is not a defence for us and even if we have had no pre­vi­ous crim­inal offences we will still be sen­tenced harshly.

The truth about real estate agents lying

When we attend our train­ing to become a real estate agent we are told about all the laws we can be pun­ished by and believe me there are a lot of them!

So if a real estate agent delib­er­ately or reck­lessly lies for fin­an­cial gain they are play­ing a deadly game of cat and mouse with the author­it­ies that will even­tu­ally catch up with them.

[note]Most agents just want to do the best job pos­sible for buy­ers, sellers, land­lords, and ten­ants.[/note]

They don’t want to be sued just as much as the next sane per­son.

There­fore with our extra trust the law has put on us, no real estate agent in their right mind ever wants to lie for fin­an­cial gain, this is the cold hard truth about our industry.

Are agents allowed to lie about mul­tiple offers?

This is a com­mon issue for buy­ers and I came across it myself when I bought my prop­erty.

I can under­stand that angry and wor­ry­ing thoughts, try­ing to find out if the real estate agent is lying about this. Couple meeting real

On top of that, I do know of the heated dis­cus­sions that hap­pen back at home, on whether you should make a higher offer for that dream property.

I do know of dodgy real estate agents that when des­per­ate to sell a prop­erty that they will lie about hav­ing other offers on the prop­erty.

Smarter agents would say “we have mul­tiple inter­ested buy­ers” which is not illegal to say.

We are bound by a strict code of eth­ics and law that is taken very ser­i­ously by Fair Trading.

If you feel as though you are being straight out lied to about other offers, I recom­mend you make a com­plaint dir­ectly to the busi­ness owner (this may not be the dir­ector, you may find them under prin­cipal).

No prin­ciple of a real estate agency wants to lose their real estate licence, and this will quickly spur them into action because it is a ser­i­ous alleg­a­tion to them.

If the dis­pute is not resolved after three attempts take your prob­lem fur­ther up the food chain.

8 little white lies real estate agents tell

As a property strategist I’ve dealt with my fair share of real estate agents, and I’ve found most of them follow a very professional code of conduct, however a few agents can and do adopt certain ways of doing things and speaking with potential buyers to push a teetering sale across the line.


I’ve heard pretty much all of it by now.

And in today’s hot property market, many buyers are suffering from FOMO (fear of missing out) – being scared the market is running away from them.

They feel they must get into the market making them more likely to be swayed by the persuasive arguments of selling agents.

So to help you out when next negotiating a property purchase, here are 8 ‘little white lies’ real estate agents might tell you…and what they really mean.

1. We have another interested partyReal Estate

Essentially they’re implying another buyer is waiting to pounce if you take too long to make your move, thereby playing on your fear of ‘losing out’ to ‘the competition’.

This creates a sense of urgency and can be a very effective psychological play in tipping a hesitant purchaser across the line.

While you shouldn’t necessarily dismiss the possibility that someone else is nipping at your heels, never feel pressured into a purchase because you might not be the victor in what’s possibly a fictitious battle.

A good way to determine if the agent’s story is legitimate is to ask questions like, ‘Has a signed contract been presented to the vendor?’

Remember that in real estate, there’s always another deal to be done so don’t be afraid to walk away.

2. We’ve had an offer of…

This is much the same as the above tactic, in that it can persuade a reluctant buyer to make an actual offer.

But how do you know if you’re being played?

Once again, asking if the other offer is in the form of a signed, contract of sale can indicate whether any genuine bid has in fact been put forward.

If the answer is “no”, then you’re competing with a verbal proposal at best, or a downright fabrication at worst. Don’t be backed into a corner.

3. We haven’t had as much interest as anticipated

Agents who love a good auction are renowned for this.

They reel in potential bidders with guide prices that are often far from the realms of reality to begin with.

Then net them with rhetoric about sluggish market interest, providing (often false) hope that you stand to secure a bargain come auction day.

To avoid paying money on pest and building inspections when all you might end up with is the taste of bitter disappointment, do some research around the current market.

Start by asking what reserve the vendor might set on the day.

You probably won’t get an upfront figure from the selling agent, but you can measure his response against comparable sales.

You could be really bold and ask what price they quoted on the listing authority.

Having your own knowledge of the local market is a sure fire way to know when guide prices and reported buyer interest levels are in the realms of reality, or a clever ploy to increase competition at auction.


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