Buying or selling a home is one of the biggest financial transactions you’ll ever make, and having a real estate agent by your side can make the process smoother. But here’s the thing: real estate agents are in the business to make a living, and while most agents are ethical and hardworking, there are certain “secrets” they might not share with you unless you know to ask.
These secrets can impact your decisions, your wallet, and your overall experience. As someone who has been on both sides of the buying and selling process, I’m here to pull back the curtain and reveal 11 things your real estate agent probably won’t tell you—but you need to know.
1. Open Houses Are More About Finding New Clients Than Selling Your Home
The Truth About Open Houses
When you list your home for sale, your agent might suggest holding an open house. It sounds like a great way to attract buyers, right? Not always. The dirty little secret is that open houses are often less about selling your home and more about helping the agent find new clients.
Most serious buyers schedule private showings. Open houses attract neighbors, casual browsers, and potential clients for the agent who may be looking to buy or sell in the future.
What You Should Do
- If you’re selling, focus on professional photos, online listings, and targeted showings rather than relying solely on open houses.
- If you’re buying, use open houses to scout neighborhoods and get a feel for the market, but don’t assume they’re the best way to find your dream home.
2. The Listing Price Isn’t Always What They Think Your Home Is Worth
The Strategy Behind Pricing
Agents know that pricing a home correctly is crucial to getting it sold. But sometimes, they’ll suggest a higher listing price to win your business or a lower price to sell it quickly. Their motivations might not always align with your goals.
What You Should Do
- Ask your agent for a Comparative Market Analysis (CMA) to see what similar homes in your area have sold for.
- Be wary of agents who promise a high selling price without solid data to back it up.
- Remember, an overpriced home can sit on the market for months, while a well-priced home can generate multiple offers.
3. Dual Agency Can Be a Conflict of Interest
When One Agent Represents Both Sides
In some states, agents are allowed to represent both the buyer and the seller in the same transaction. This is called dual agency. While it might seem convenient, it can lead to a conflict of interest. How can one agent negotiate the best deal for both parties?
What You Should Do
- If you’re buying or selling, consider working with an agent who exclusively represents your interests.
- If dual agency is allowed in your state, make sure you understand the potential downsides before agreeing to it.
4. Agents Might Push You Toward Higher-Priced Homes
The Commission Factor
Real estate agents typically work on commission, which means the more expensive the home, the higher their paycheck. This can sometimes lead to subtle pressure to consider homes at the upper end of your budget.
What You Should Do
- Set a firm budget and stick to it, regardless of what your agent suggests.
- Make sure your agent knows you’re serious about staying within your price range.
- Remember, you’re in control of the process.
5. Staging Isn’t Always Necessary
The Staging Myth
Professional staging can make a home look amazing, but it’s not always necessary. In some cases, simple decluttering, cleaning, and a fresh coat of paint can achieve similar results for a fraction of the cost.
What You Should Do
- Ask your agent if staging is truly necessary for your home and market.
- If you decide to stage, consider DIY options or focus on staging key areas like the living room, kitchen, and master bedroom.
- Weigh the cost of staging against the potential increase in your home’s selling price.
6. You Can Negotiate the Agent’s Commission
Commission Isn’t Set in Stone
Many buyers and sellers assume the standard 5-6% commission is non-negotiable. But in reality, agent commissions are negotiable. Depending on the market and the level of service provided, some agents may be willing to accept a lower commission.
What You Should Do
- Don’t be afraid to ask for a reduced commission, especially if you’re selling a high-priced home or buying and selling with the same agent.
- Compare commission rates from multiple agents before making a decision.
7. “We Have Another Offer” Isn’t Always True
The Bidding War Bluff
In competitive markets, agents sometimes use the phrase “we have another offer” to create a sense of urgency. While this can be true, there are cases where agents use it as a negotiating tactic to get you to increase your offer.
What You Should Do
- Ask for proof of the other offer if you’re unsure.
- Stay calm and avoid making decisions based on pressure tactics.
- Trust your gut—if it feels like a bluff, it might be.
8. Not All Renovations Increase Home Value
The Reality of Return on Investment
Your agent might suggest making renovations before listing your home, but not all renovations offer a good return on investment (ROI). For example, a major kitchen remodel might look great but only recoup 60-70% of the cost when you sell.
What You Should Do
- Focus on cost-effective improvements like painting, landscaping, and minor repairs.
- Ask your agent for specific advice on which updates will give you the best ROI in your market.
9. Your Home Might Be Worth More Than They Say
The “Quick Sale” Strategy
Some agents undervalue homes to get a quick sale and an easy commission. If you’re selling in a hot market, your home might be worth more than your agent suggests.
What You Should Do
- Get a second opinion from another agent or a professional appraiser.
- Research recent sales in your neighborhood to see what similar homes are going for.
- Trust the data, not just the agent’s opinion.
10. Agents Have Preferred Vendors (But They’re Not Always the Best)
The Referral Game
Agents often have a list of preferred lenders, inspectors, and contractors. While these referrals can be helpful, they might not always be the best option for you—they might just be the agent’s go-to for convenience or a referral fee.
What You Should Do
- Get recommendations from multiple sources before hiring anyone.
- Read reviews and compare quotes to ensure you’re getting the best deal.
- Don’t feel pressured to use the agent’s preferred vendors.
11. You Don’t Always Need an Agent
The DIY Route
In some cases, you might be able to buy or sell a home without an agent. For example, if you’re selling to a friend or buying a new construction home, you might save on commission fees by handling the transaction yourself.
What You Should Do
- Weigh the pros and cons of going FSBO (For Sale By Owner) or using an agent.
- If you’re comfortable with paperwork and negotiation, consider handling the sale yourself.
- If you choose the DIY route, consult a real estate attorney to ensure the transaction is legal and smooth.
Knowledge Is Power in Real Estate
Understanding these 11 secrets can empower you to make smarter decisions, whether you’re buying or selling a home. While most real estate agents are honest and hardworking, knowing these insider tips can help you protect your interests and get the best possible outcome.
After all, it’s your home, your money, and your future—don’t let anything stand in the way of making the right choice.
