Najib Blog

Avoid These 5 Real Estate Agency Tactics: How to Choose Your Agent Wisely

Table of Contents


Tactic #1: Overpromising on Price

Tactic #2: No Price Guide

Tactic #3: The Auction Tactic

Tactic #4: Agency Size and Representation

Tactic #5: Commission Discounts




When it comes to buying or selling a home, it is important to be aware of the tactics used by real estate agencies. These tactics can have a significant impact on your home selling experience and the outcome of your purchase or sale. Choosing the right real estate agent (and not the agency) is crucial to ensure that you are working with someone who has your best interests in mind.

The objective of this article is to inform readers about the common tactics used by real estate agencies and to provide tips on how to navigate these tactics effectively. By understanding these tactics, you can make informed decisions and avoid potential pitfalls that may arise during the buying or selling process.

Tactic #1: Overpromising on Price

One common tactic used by real estate agencies is overpromising on the price in order to attract sellers. Agents may give sellers a price that is significantly higher than the market value to attract them to sign with their agency. This can be enticing for sellers who believe their home is worth more than it actually is.

This tactic often involves a strategy known as "condition with control." Agents will initially promise a high price to get the property listed, but then lower the price shortly after it is on the market. This can leave sellers feeling deceived and disappointed with the outcome of their sale.

For Sellers: Overpromising on price can have negative consequences. If the price is lowered after the property is listed, it may sit on the market for a longer period of time, potentially leading to a lower final sale price. 

For Buyers: Additionally, buyers may be deterred from considering the property if they perceive the price as unrealistic.

It is important for sellers to be aware of this tactic and to carefully consider the price guidance provided by agents. It is advisable to do thorough research on the market value of the property and to consult with multiple agents before making a decision.

By being cautious of overpromising on price, sellers can avoid disappointment and ensure that they are working with an agent who has their best interests in mind.

Why choose Najib?

At Najib, we strive to provide truth in an industry often marked by overpromising and underdelivering. Our agents are committed to bringing the best result for our vendors and providing realistic market trends and conditions.

Thinking about selling your Christchurch or Selwyn home? Get a Free Appraisal today 

Tactic #2: No Price or Price Guide Indicator

Another common tactic used by real estate agencies is not displaying a price guide for a property. This can have a negative impact on both buyers and sellers.

When a property is listed without a price guide, it can deter potential buyers from considering the property. 

Research has shown that 72% of buyers will skip right through a listing if there is no price or price guide indicator. Buyers often view this lack of information as a sign that the property may be overpriced or out of their budget.

Having a price guide is important because it helps attract buyers and generate increased interest in the property. When buyers see a price guide, they have a better understanding of the property's value and are more likely to make an offer. More buyers and more offers creates competition, thus leading to a higher sale price.

Not displaying a price guide can also lead to underselling the home. Without a price guide, buyers may underestimate the value of the property or assume it is outside of their budget. This can result in lower offers and ultimately a lower sale price for the seller.

Read our in-depth blog on Price Guides to help you understand in detail.

What makes Najib different?

At Najib Real Estate, we redefine the home-selling experience. Unlike other Real Estate Agents, we don't just assign a single agent; we provide you with an entire team dedicated to selling your unique home, your way.

With us, you're not just a client; you're part of a winning partnership and we're here to guide and

support you at every turn. 

Discover the difference that a dedicated team can make.

Tactic #3: The Auction Tactic


One common myth is that every home should be auctioned. Real estate agencies often push for auctions as a solution, but it may not be the best option for every seller, especially first-time home buyers.

The primary reason agencies promote auctions is because of the revenue they generate. 

Auction revenue is a significant source of cash flow for agencies, especially in tough markets. However, this focus on auction revenue may not align with the best interests of sellers.

First-time home buyers: auctions can be intimidating and overwhelming. Many first-time buyers prefer a more traditional buying process where they can negotiate and have more control over the transaction. Auctions, on the other hand, require buyers to bid and potentially compete with other buyers, which can be daunting for those new to the real estate market. First-time home buyers, for example, may be less likely to participate in auctions. By not opening the property to all potential buyers, sellers may not achieve the highest possible sale price.

Sellers: sellers should consider whether auctioning their property will maximise its value. While auctions can create a sense of urgency and competition among buyers, they may not attract all potential buyers. 

The question you should ask your real estate agent

It is important for sellers to question whether their property is suitable for auction and to discuss this with their agent. Sellers should ask how many first-time or second-time home buyers would be likely to bid unconditionally at an auction. This will help sellers determine if an auction is the right strategy for their specific property.

Ultimately, the goal when selling a property is to maximise its value. This is best achieved by considering all potential buyers and not limiting the property to a small percentage of the market through an auction. 

There are times when an auction is the best method of sale, but if you are selling a home that may attract first or second time buyers, a deadline method may be better. 

Read more on Auction vs Deadline Sale

Tactic #4: Agency Size and Representation

Another common misconception in the real estate industry is the belief that agency size directly correlates with the ability to sell a home. However, the size of the agency does not necessarily determine the success of a sale. It is crucial for sellers to understand this misconception and focus on the agent representing them instead.

The agent's role in representing the seller is of utmost importance. The real estate agent is responsible for marketing and selling the home, negotiating with potential buyers, and ensuring a smooth transaction process. Regardless of the size of the agency, it is the agent's skills, experience, and dedication that will ultimately lead to a successful sale.

In today's digital age, the relevance of the agency itself may be less significant compared to the agent's abilities. With the internet providing access to listings for buyers from all over the world, the focus should be on finding an agent who can effectively market the home online and attract potential buyers.

The agent's role in marketing and selling the home cannot be underestimated. A skilled agent will utilise various marketing strategies, such as professional photography, virtual tours, and targeted online advertising, to attract qualified buyers. They will also provide guidance on pricing the home appropriately, and negotiate affectively to ensure you find the right buyer.

Tactic #5: Commission Discounts

Real estate agencies often utilise the tactic of offering commission discounts or a free marketing package to sellers. While this may seem like a good deal for sellers, it can actually make them vulnerable to certain risks and consequences.

When an agent offers a commission discount, they may be more inclined to prioritise selling the property quickly rather than maximising its value. This is because the agent is carrying the cost of marketing the property and needs to recoup their investment as soon as possible. As a result, they may not put in the same level of effort or resources into marketing the property effectively.

Additionally, when an agent pays for the marketing of the property, they may opt for cheaper or less effective marketing strategies. This can limit the exposure of the property to potential buyers and ultimately impact the final sale price. Sellers who choose an agent that offers commission discounts may find themselves in a situation where they are selling their property quickly but at a lower price than it could have achieved with better marketing.

Paying for your own marketing also gives sellers more control over the process. 

Read an in-depth blog on Tips for Selling a home with the right marketing


In conclusion, it is advised to be aware of the tactics used by these agencies when buying or selling a home.

By taking control of the selling process and carefully selecting an agent, you can maximise the value of your home and achieve a successful and profitable sale. It is important to prioritise your goals and interests as a seller or a buyer and work with an agent who shares your vision.


Q: What are some common tactics used by real estate agencies?

A: Real estate agencies often overpromise on the price of a property, market homes without a price or price guide, auction every home, emphasise agency size and reputation, and offer discounted commissions or pay for marketing expenses.

Q: Why is it important to choose the right real estate agent?

A: The individual agent representing the seller plays the most crucial role in selling a home. Regardless of the size of the agency, it is the agent's skills, experience, and dedication that truly matter. Sellers should prioritise finding a skilled and reputable agent with a proven track record.

Q: How can sellers avoid falling for real estate agency tactics?

A: Sellers should be cautious and realistic when considering the initial price offered by an agency. Thorough research on the market value of the property and consulting multiple agents can provide a more accurate estimate. Asking for justifications and evidence behind the initial price offered is also advisable. Sellers should insist on a clear price guide and ensure that their property is marketed with a price. Additionally, sellers should question agents about the reasoning behind an auction and consider whether it will attract the right buyers. Finally, sellers should hire the best agent and pay for their own marketing to prioritise maximising the value of their home.

Looking to sell your Christchurch or Selwyn home, request a free property appraisal here.

Previous Article Next Article