Why understanding ‘agent speak’ can save you time and energy with your property search

I couldn’t believe my ears.

This was the third property inspection I had been to today and every agent I came across was spinning me the same line.

“There’s a lot of interest on this one. We’ve had some early offers and there are 6 contracts out already. You’ll need to put your best foot forward”. Or so they said…

I’ve been in the industry long enough now not let it bother me. Like any industry, there is probably a handful of trainers and top performers that people learn from and after a while the same lines get regurgitated without thinking.

Given that most people rarely buy property, agents who spin the same lines and use the same negotiation tactics don’t get into trouble too often. Given that my role as a buyer’s agent puts me in front of agents every day though, I hear these lines over and over and they no longer pull at the emotional heartstrings that others might feel.

Interpreting what is being said and what they actually mean though is an art in itself and one worth understanding. Cutting through the proverbial crap will often save you weeks of effort chasing a property that you may have never had the hope of winning in the first place because you didn’t understand what was really happening behind the scenes.

While I certainly haven’t been able to capture all the weird and wacky terms that agents slip past me, here are some of the more common terms that spring to mind that are worth remembering.

On first inspections

I’m always surprised at the phrases I hear at open homes. I’m often given the impression that hoards of eager buyers have all been in before me and have been bidding for the property like they were on a trading floor. Without question, there’s “strong interest” on every property I’ve ever walked into…

“This is such a good deal I’m thinking of buying it myself” — translates to — “I may have to buy this myself if I want to make a sale because no one else is interested”.

“We’ve had strong interest already” — translates to — “the other agents in the office have all taken a look at it and would love to have a shot at selling it if I can’t”.

“Early interest has been around…” — translates to — “the other agents in the office came through and thought I would be lucky if I could sell it for…”

On Pricing

I often get queried about what the agent is really expecting on price when a “price guide” is being quoted. While this really got out of hand in Sydney this year, recent regulations have now started to crack down on underquoting and often agents will tell you the price range that they put on their Agreement with their vendor.

That being said, as a very basic rule, if the agent gives you a price between x and y, they always mean y (the higher figure). Take that rule with you and you’ll rarely be disappointed by the end result.

“We’ll be guided by the market on this one” — translates to — “We’re too busy to look at comparable sales in the area and we’re not really sure ourselves”.

“We expect pricing in the low 700K’s” — translates to — “Add another 10% or you’re wasting your time”.

“The offer will need to have an 8 in front of it” — translates to — “We’re hoping to get an offer with a 9 in front of it”.

On Negotiations

In my experience, most properties are negotiated in the same fashion — the vendor doesn’t need to sell and there’s always another party who’s made an offer at the same time as you but the agent will “see what they can do” to help you own it.

Rather than be surprised by this consistency, always start with a respectable offer but never your best, and always draw your own line in the sand when it comes to what you’re prepared to pay rather than have someone else do it for you. That means doing a little research into what sold in the area that was similar. If you can find a similar sale in the same street or building, this is even better.

It’s also wise to realise that not every deal is a good deal and even the selling agent can struggle to get vendors across the line because they have unrealistic expectations.

“If they don’t get the price they’re looking for they’ll just rent it out” — translates to — “If I don’t get absolute top dollar the vendor has threatened to take the sale from me”.

“The vendor doesn’t need to sell” — translates to — “The vendor really does have unrealistic price expectations”.

“The vendor’s keen to do a deal” — translates to — “The vendor is on the verge of bankruptcy or has bought elsewhere and is getting nervous”.

“I don’t think the other buyer has much left in them” — translates to — “You’re the only buyer I’m dealing with at the moment”.

“The other party doesn’t have much left in them” — translates to — “I’m going to keep bouncing the offer between you and the other buyer until one of you drops out”.

While all of this ‘agent speak’ can be frustrating at times, just remember to stay focused and on point with your budget. Getting frustrated won’t serve you at all and burning bridges with agents who push you over the edge often means you can miss out on other great deals.

Listen to what’s being said, ask clear and direct questions and treat others how you would want to be treated yourself, even if you’re not getting the same treatment back. You’ll quickly work out the type of agent you want to deal with and no doubt they will one day earn your business.

P.S. If you liked this post, you might enjoy our BuySide blog where you’ll find out useful tips about investing in property.

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