Posted March 5, 2025

Exposed: The Lies Real Estate Agents Tell Sellers (And How to Spot Them)

Selling a home is one of the biggest financial decisions a person will make in their lifetime. Whether you’re selling your first home, downsizing, or moving to a new suburb, choosing the right real estate agent is crucial. A great agent can make the process seamless, maximise your sale price, and ensure a stress-free experience. However, not all agents operate with integrity. Some use misleading tactics to secure listings or push for quick sales, prioritising their commission over the best interests of the seller.

In South Australia, sellers need to be aware of the common tricks some agents use to win business. Overquoting to secure listings, underquoting to attract more buyers, misleading advertising, and even fabricating offers are just a few of the unethical strategies that can leave sellers frustrated, financially disadvantaged, and feeling misled.

If you’re selling a property, it’s essential to understand these deceptive tactics, how they can impact your sale, and most importantly, how to identify a trustworthy, results-driven agent. By being informed and asking the right questions, you can avoid the pitfalls of working with the wrong agent and ensure a smooth and profitable property transaction.

This article will expose the most common lies real estate agents tell sellers, explain their impact, and provide practical tips for choosing a professional agent who genuinely has your best interests at heart.

The Most Common Lies Real Estate Agents Tell

Unfortunately, not all real estate agents operate with honesty and transparency. While many are ethical professionals committed to securing the best outcome for their clients, others use deceptive tactics to win listings or push quick sales. Here are some of the most common lies real estate agents tell sellers:

1. Overquoting to Win Your Business

Overquoting occurs when an agent gives you an unrealistically high valuation for your property to convince you to list with them. Sellers often choose the agent who promises the highest price, only to later be told that the market conditions have changed or that they need to lower their asking price. This strategy can waste valuable time, leading to price reductions and a prolonged selling process.

2. Underquoting to Attract Buyers

The opposite of overquoting, underquoting is when agents list a property at a price well below its actual value to generate more interest. This tactic creates the illusion of an affordable bargain, drawing in more buyers. However, serious buyers may be put off when they realise they’ve been misled, leading to frustration and wasted effort.

3. Fake Offers and False Urgency

Some agents claim they have multiple offers on the table to pressure sellers into accepting a lower price or making a hasty decision. If an agent tells you there are competing offers, ask for written confirmation or proof before making any decisions.

4. Misleading Advertising

Vague phrases like “Contact Agent for Price” or “Price Guide on Request” are often used to attract enquiries while withholding crucial information. This can be frustrating for both buyers and sellers, limiting the property’s exposure and potential sale price.

5. Hidden Fees and Costs

Some agents fail to disclose all costs upfront, leaving sellers with unexpected expenses for marketing, photography, or auction fees. Always request a full breakdown of costs before signing a contract.

Understanding these tactics can help sellers in South Australia protect themselves from unethical practices and ensure a fair and transparent selling process.

How These Lies Can Hurt Sellers

Falling victim to dishonest real estate tactics can have serious consequences, affecting not just your final sale price but also your stress levels and financial security. Here’s how these deceptive practices can impact sellers:

1. Financial Loss Due to Overquoting

When an agent overquotes your property’s value to secure your listing, it may seem like a great opportunity to maximise your sale price. However, if the price is too high, your property may sit on the market for months without serious interest. Eventually, you may be forced to lower the price—sometimes below market value—to attract buyers. A property that lingers too long on the market can become “stale,” making buyers suspicious and hesitant to pay a premium.

2. Wasted Time and Effort

Underquoting might attract a flood of buyers, but many will be unable to meet the real selling price. This results in wasted open homes, unnecessary negotiations, and frustration for sellers. It can also mean missed opportunities to connect with serious buyers who were turned off by misleading advertising.

3. Emotional Stress and Pressure

Selling a home is already an emotional process, and dealing with dishonest agents only adds to the stress. If an agent claims there are competing offers when there aren’t, or pressures you to lower your price unexpectedly, it can leave you feeling confused and powerless. Many sellers end up making rushed decisions they later regret.

4. Legal and Ethical Risks

Some of these tactics—such as underquoting—are illegal under South Australian consumer laws. If a real estate agent is caught engaging in deceptive conduct, it can result in fines or legal disputes, potentially delaying your sale and causing further frustration.

By being aware of these risks, South Australian sellers can take steps to protect themselves, ensuring they make informed decisions and achieve the best possible outcome when selling their property.

How to Spot a Trustworthy Real Estate Agent

Not all real estate agents use deceptive tactics. Many are dedicated professionals who genuinely work in the best interests of their clients. The challenge for sellers is identifying which agents are trustworthy and which ones might be misleading them. Here’s how to spot a results-driven, ethical agent:

1. A Proven Track Record

A reputable agent should be able to provide evidence of past sales, including properties similar to yours. Look at their sales history, the prices they’ve achieved, and how long their listings stay on the market. Websites like RateMyAgent offer reviews and ratings from past clients, which can help you gauge their reputation.

2. Transparency in Pricing and Fees

A trustworthy agent will be upfront about their commission, marketing costs, and any additional fees. They will provide a full breakdown of expenses before you sign any agreements. If an agent is vague about costs or reluctant to disclose them, consider it a red flag.

3. Data-Backed Property Valuations

Honest agents don’t just throw out a high number to win your listing—they provide a Comparative Market Analysis (CMA) using recent sales data from similar homes in your area. This gives you a realistic expectation of what your property can sell for.

4. Clear Communication and Availability

A good agent will keep you informed at every stage of the selling process. They should be easy to contact, responsive to your questions, and willing to provide regular updates on buyer interest and market conditions.

5. No Pressure or Rushed Decisions

An ethical agent will never pressure you into accepting an offer or making a hasty decision. They should respect your timeline and work to secure the best possible price for your property, rather than prioritising a quick commission.

By doing your research and asking the right questions, you can ensure you’re working with a trustworthy agent who is committed to achieving the best result for you.

Questions to Ask Before Choosing an Agent

Choosing the right real estate agent is one of the most important decisions you’ll make when selling your property. Asking the right questions can help you determine whether an agent is honest, experienced, and committed to getting you the best possible result. Here are key questions to ask before signing an agreement:

1. What is Your Experience in My Area?

A local agent with a strong track record in your suburb will have a deep understanding of the market, buyer demand, and recent sales trends. Ask how many properties they’ve sold in your area and what prices they’ve achieved.

2. How Do You Determine the Listing Price?

An ethical agent should provide a Comparative Market Analysis (CMA) with recent sales data for similar properties. Be cautious of agents who quote high figures without supporting evidence—this could be a sign of overquoting.

3. What Marketing Strategies Will You Use?

Effective marketing is key to attracting buyers. Ask about their advertising plan, including online listings, social media promotion, professional photography, and open home strategies. Avoid agents who rely on vague answers or generic plans.

4. What Are Your Fees and Additional Costs?

Request a full breakdown of commissions, marketing expenses, and any other potential charges. A trustworthy agent will be transparent about all costs upfront, with no hidden fees.

5. How Often Will You Provide Updates?

Regular communication is essential for a smooth selling process. Ask how frequently they will update you on buyer interest, offers, and market conditions.

By asking these questions, you can gain a clear understanding of an agent’s professionalism, experience, and commitment to achieving the best outcome for your sale.

Legal Protections for Sellers in South Australia

Selling a property is a major financial transaction, and South Australian laws are in place to protect sellers from deceptive real estate practices. Understanding your rights can help you avoid unethical agents and ensure a fair and transparent sale process.

1. Underquoting and Overquoting Laws

In South Australia, it is illegal for real estate agents to deliberately mislead buyers with underquoting. This means agents cannot advertise a property at a price significantly lower than its expected selling range just to attract more buyers. While overquoting is not illegal, it is considered unethical and can result in wasted time and money for sellers.

2. Mandatory Disclosure Requirements

Real estate agents must provide sellers with a written agency agreement that outlines:

The agent’s commission
Marketing costs
Estimated selling price (based on recent comparable sales)
Any conflicts of interest

Sellers should carefully review this document before signing. If an agent refuses to provide a clear breakdown of costs, it’s a warning sign.

3. Consumer and Business Services (CBS) Protections

South Australian sellers who believe they have been misled by an agent can lodge a complaint with Consumer and Business Services (CBS). CBS investigates dishonest practices and can impose fines or revoke an agent’s licence if they breach industry regulations.

4. Cooling-Off Periods for Agreements

If you sign an exclusive agency agreement with an agent but later change your mind, South Australian laws allow a cooling-off period where you can cancel within a certain timeframe. This gives sellers a safeguard against rushed decisions.

Understanding these legal protections can help sellers hold agents accountable and ensure a transparent, ethical selling experience.

Conclusion

Selling a property is one of the biggest financial decisions a homeowner will make, and choosing the right real estate agent can significantly impact the outcome. While many agents are professional, ethical, and dedicated to securing the best results for their clients, some use misleading tactics to win business and push quick sales. Overquoting, underquoting, fake offers, hidden fees, and misleading advertising are just a few of the deceptive practices that can cost sellers time, money, and unnecessary stress.

By understanding these tactics, sellers can protect themselves from unethical agents and make informed decisions. Asking the right questions, researching an agent’s track record, and ensuring full transparency on pricing and marketing strategies are essential steps in finding a trustworthy, results-driven professional. Additionally, South Australian laws provide protections against misleading real estate practices, giving sellers legal recourse if they suspect they have been misled.

Ultimately, the best way to safeguard your interests is to stay informed and proactive. If an agent promises results that seem too good to be true, trust your instincts and seek out a professional with a strong reputation, clear communication, and a proven track record. A skilled, honest real estate agent will work with your best interests in mind, ensuring a smooth, transparent, and successful property sale.

By taking the time to choose the right agent, you can maximise your sale price, minimise stress, and navigate the selling process with confidence.

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