Hey guys. It’s Gary Wong from GaryWongRealty.com
again. People know me as the Christian realtor. Today, I’d like to talk to you a little bit
about the five things that I discovered when I entered this industry. They were pretty
mind blowing, and I wanted to share that with you because I looked for it online myself
and I couldn’t find any information about it, so I decided to talk about it.
The things I’m going to talk about, a little bit taboo, people don’t like to share about
it. The things I’m going to talk about are the five tricks that I’ve seen realtors play
in this industry. Obviously, this isn’t to generalize that all realtors do this. I’ve
just seen some of these tricks, and then I just wanted you guys to be aware of it.
Okay, let me start off with the first one. Number one is overpricing your listing. I’ve
seen realtors try to get … Their goal was just to get as many listings as possible.
They’ll tell the seller they can sell their property for whatever price they want. Obviously,
homeowners will want to … they want more money for their house, so they’ll overprice
them. Listing agents, because they want the listing so bad, they’ll say, “Yeah, sure.
I can sell it for that much.” They’ll end up overpricing their listings.
Why do they do this? They want as many listings as possible so that they can put their for
sale sign outside. Somebody told me that perspective is often reality. What I mean by that is what
you see … Like, you see this listing agent have their realtor signs all over the place.
You immediately think that they’re successful because they have listings all over the place,
but you don’t know how they got those listings. For example, if I went around and told people
that, “Oh, I can sell your home for X amount,” and it’s like a ridiculous amount, people
would be like, “Yeah, sure. It doesn’t cost me anything to list with you. I only have
to pay you when it sells. Sure, I’ll list it with you.” Some realtors go around and
do that, and then they have a bunch of listings, and they generate this perception that they’re
very successful when they just got the listings through this kind of technique or their kind
of strategy. Just be aware of that. When I first started
in the industry, I was like, “Wow, why does this realtor have all these listings?” Then
I looked up their listings, and I was like, “Wow, they’re all super expensive and overpricing
the homes considerably.” Then I thought, “Oh, okay. That’s how they’re getting the listings.
They’re just telling their sellers, ‘I can sell it for whatever,’ and then they get the
listing, and then, by having listings everywhere, everybody thinks they’re successful and everybody
goes and contacts that realtor.” Anyways, that’s their strategy. I obviously don’t agree
with it. That’s number one. Number two, realtors telling their prospective
clients, “Oh, I have buyers” for their homes. Another method, instead of going to those
clients and saying, “Oh, I can sell your home for this much,” just go up to them and go,
“Oh, you know, I have buyers for your home. Definitely list with me, I have buyers for
your home. They’re ready buy.” All that stuff. In some ways, it’s true. You might have specific
buyers looking in that particular neighborhood. Let’s say I’m selling in UBC. Let’s say I
approach a particular prospect in UBC, and I do have UBC buyers looking to buy UBC, so
on that note, yes, you can say, “Yeah, I have potential UBC buyers looking to buy condos,”
but a lot of realtors just make it up. They just say, “Yeah, I have buyers. I have buyers,”
no matter what. Then, when you list it with them, they just go and then find buyers. Obviously,
if they have the listings, it’s very easy for them to find the buyers. They just talk
to their co-workers at the office. There’s bound to be a couple of realtors in the office
who have buyers looking in that neighborhood of your listing.
That’s another trick that they use to get clients, get prospects to sign their listing
with them. They just go, “Oh, you know, I have connections with wealthy, influential
buyers, overseas buyers. They’re ready to buy, cash on hand.” Well, everybody says that.
Tons of realtors probably have wealthy buyer connections, but do they have a wealthy buyer
connection who is interested in buying your home? That’s a different story. I don’t know
about that, but when I meet my clients, I don’t say, “I have a buyer for your home.”
I can say I have buyers, but I don’t say, “Yeah, I have a buyer who is interested in
your home, or who will buy your home.” It’s kind of misleading, so I don’t really like
that trick. That’s the second trick that I’ve seen.
Then I talked to some of my co-workers who got into the industry around the same time
I did, and they tell me about stories of fake offers or fake multiple offers. They tell
me of situations where they’re in a multiple offer situation or … Sorry. They tell me
of a situation where they’re representing the buyer, and they’re writing an offer on
a listing, but the listing agent would say, “Oh, yeah, we have multiple offers.” How can
you prove that? The listing agent isn’t going to show you the multiple offers, the other
offers. You just have to take their word. What does the buying agent do? Tell their
client, “Oh, yeah, we have multiple offers. We better jack up our price.”
It’s hard to catch people. If listing agents … When listing agents do this, I’m not saying
all of them do. Very few, minority do this, but when they do this, it’s hard to catch
them, basically. It’s hard to determine whether they’re telling the truth or not. Obviously,
it’s wrong. If you can catch them, yeah, they’ll be in trouble by the real estate board, but
the problem is how are you going to prove it? Fake multiple offers, that’s just, unfortunately,
it happens sometimes in this industry. Just be careful that there are agents who just
make up those kind of things. Oh, yeah, so the fourth thing is fake deposits.
This friend of mine, who is also a realtor, was telling me that she … Let’s say I’m
listing your house for sale. It’s a three month contract, and after three months, it’s
about to expire, and I couldn’t sell the home. You’re like, “Gary, a week left in our contract,
I’m going to cancel the house or take it off the market, or I’m going to list it with somebody
else. Good effort, but see you later in a week.” Within the week, I come along and,
“Oh, hey, Mr. or Mrs. Client. I got you an offer.”
The problem is, what the tricky realtors do is they’re like, “Oh, here’s an offer,” but
actually, it’s not a real offer. It’s an offer written by their friend or their co-worker
or something like that. Here’s a fake offer, and I take it to the client, and the client
goes, “Oh, you have an offer.” I say, “Oh, yeah. You know, our contract is about to expire.
Let’s extend it so we can deal with this offer.” We extend it for another three months, but
actually, the offer was fake, and then I even brought a fake deposit in. Obviously, because
it’s fake, it doesn’t go through, but I’ve extended the contract for three months.
I’ve heard of this situation from multiple people happening, and it’s like, wow. How
do you compete with these tricky realtors who are doing that? Obviously, what I would
say is just because you extend the contract for another three months doesn’t mean you’re
bound by the contract to stick with them. You can cancel at any time. You can ask for
an unconditional waiver, unconditional termination, something for you to be aware of. Just because
you signed a paper doesn’t mean you can’t cancel it. If I list my friend’s home for
three months, and after a month, they’re like, “Gary, you know, I don’t want to sell it anymore.”
“Sure, here’s the cancellation form. Sign it, and it’s canceled.”
I don’t know. Some realtors don’t tell them that there’s a cancellation clause, or they
don’t talk about … Well, actually, the listing contract says, “If you want to cancel, here
are the steps.” I usually explain all the clauses, but I don’t know.
The last thing, number five, is representing the buyer and the seller without explaining
agency. This is important. I talked to you guys about this in the Know Your Agency video
a while back. Just to briefly explain it, if you’re representing a seller, and somebody
comes in on the open house and says, “Gary, you know, I want you to write an offer on
this house.” I’m like, “Sure, sure.” I’m supposed to explain there’s two types of agency. I
can either offer you customer agency, which is no agency, or I can offer you limited dual
agency. No agency means, just like you, if you walk
into a pre-sale, the sales rep there doesn’t offer you agency. They offer you no, or customer
agency or no agency. Same thing. It means, we just help you write the contract. We don’t
give you any advice about pricing. We represent the developer. We’re not looking out for your
best interest. We’re looking out for our client, the developer’s best interest. That’s called
no agency or customer agency. If I offer you limited dual agency, that means
I represent the seller and the buyer, both together, meaning you come in to the open
house, and you go, “Gary, can you write the offer for me,” and you say, “I want you to
represent me as well.” That means, you want me to look out for your best interest, as
well as look out for my seller’s best interest. How does that work? It sounds like a conflict
of interest, but if you can do it properly, it’s okay. Basically, I can’t reveal confidential,
personal information to each other. I can’t reveal to the buyer the seller’s lowest price
or the seller’s motivation to sell. I can’t reveal to the seller the buyer’s highest price
or the buyer’s motivation to buy. Other than that, I can represent both of them.
I can give the buyer comparables and that kind of thing, but in the end, let’s say the
buyer goes, “Gary, you know, what’s the seller’s bottom line?” I’d be like, “Sorry, I can’t.
I represent you, but I can’t reveal this kind of information under limited dual agency.”
The problem is, the trick some realtors use, is that they try to double end the deal. They
try to get both sides of the deal, and they try to look like they’re representing the
buyer, but they’re not. Then they don’t explain the agency problem,
the issue, or they just tell the buyer, “Oh, just sign this working with a realtor form.
Sign here, sign here,” don’t explain anything. The buyer later complains, “Oh, I thought
the realtor was representing me. I thought the realtor was helping me, looking out for
my best interest.” Wrong. Just be careful about that.
How can you prevent yourself from these kind of issues? Well, just be more informed. Ask
your realtor a lot of questions. Does your realtor look like they’re hiding some stuff,
or do they look like they’re really desperate to get your business somehow? It’s kind of
obvious when you work with realtors or when you work with … The majority of realtors,
they’re very honest, full of integrity, and that kind of stuff, but you come across some
that just … Their practices or the way they talk or the way they conduct their business
is a little bit skeptical. Just be careful of that.
Once again, that was my video, five tricks that some shady realtors play. Obviously,
once again, disclaimer that this is not a representation of the general majority. Obviously,
this is a very tiny minority, but it does happen, and you should just be careful. This
is Gary Wong from GaryWongRealty.com, and thanks for watching. Subscribe, comment below,
and God bless, and have a great day.