Key takeaways
The selling agent works for the vendor, so any information you reveal may be used to strengthen the vendor’s negotiating position.
Keep your maximum budget private and speak only in general terms about the price range you are considering.
Avoid revealing that you need to buy quickly, as urgency can reduce your negotiating leverage.
Do not volunteer your estimate of the property’s value because it may be higher than the vendor’s expectations.
Show enough genuine interest to remain part of the conversation, particularly if the vendor receives multiple offers or decides to sell before auction.
Remain professional and responsive while keeping your emotions, urgency and upper price limit to yourself.
A buyer’s agent can provide emotional distance, gather information about the vendor and negotiate without revealing your strongest hand.
Buying a property can be an exciting experience, and it is easy for emotions to take over when you find a home or investment that seems to tick all the right boxes.
However, successful property investment should be approached differently from buying a home to live in because investors need to remain objective and make decisions based on research, numbers and strategy.
Either way, we are all human, and sometimes our enthusiasm can reveal more than we intended.
One of the worst times for that to happen is when speaking with the selling agent.
Remember, the real estate agent works for the vendor. While they are marketing the property, they are also gathering useful information about potential buyers that may help their client during negotiations.
This information can be particularly valuable when a property is being sold by auction, so it is generally wise to keep some details to yourself.
Of course, there is a fine line between maintaining a poker face and showing enough genuine interest to remain part of the conversation.
Here are four things you should avoid saying to a real estate agent.
1. Your maximum budget
Smart property buyers establish a strict budget before they begin negotiating, and they stick to it.
That figure should only be known to you and the trusted members of your property team.
The selling agent doesn't need to know the maximum amount you can spend because their job is to achieve the best possible result for the vendor.
Agents naturally try to learn as much as possible about potential buyers, and your budget is one of the most valuable pieces of information they can obtain.
For example, imagine you have a budget of $800,000 and are inspecting a property advertised with a price beginning with seven.
If the agent knows you can spend more, they may use that information to push you towards the top of your budget, even if the vendor might have accepted less.
A better response is to keep your answer general by saying something such as, “I’m looking at properties around this price range.”
This keeps the conversation moving without revealing your maximum buying capacity.
2. How urgently you need to buy
Timing can play an important role in property negotiations, which is why an agent may try to determine how quickly you need to buy.
At the same time, you or your buyer’s agent should try to understand the vendor’s preferred timing.
The seller may need a quick sale, want a longer settlement, or have another condition that could create a more attractive offer without necessarily increasing the price.
However, if the agent knows you are under pressure to secure a property, perhaps because you have already sold your home or your lease is ending, they may use that urgency to speed up the negotiation.
This can leave you with less time to properly consider the property, complete your due diligence and assess whether the purchase fits your longer-term plans.
It is generally better to remain flexible and avoid giving the impression that you must buy immediately.
3. Your estimate of the property’s value
Many homes are advertised with a price range, while others are listed without a price at all.
Properties that attract strong interest can be difficult to price precisely because the final selling price will be determined by buyers competing for them.
Note: The market will always dictate property price, and it's usually an emotion that drives that price up.
However, offering your own price estimate too early can weaken your negotiating position.
Your figure may be higher than what the vendor was originally prepared to accept, giving the agent valuable information to use during negotiations.
Rather than volunteering a price, discuss recent comparable sales and ask the agent questions about the vendor’s expectations.
This shows that you have researched the market and understand the property’s likely value without revealing the amount you may ultimately be prepared to pay.
4. That you are not interested
Buying property involves negotiation, but giving the agent the silent treatment or pretending you're not interested is unlikely to help.
The agent works for the vendor, but they also need to identify genuine buyers and communicate with them throughout the sales campaign.
If you appear completely uninterested, the agent may assume you are unlikely to make an offer and focus their attention on other buyers.
A more effective approach is to show enough interest to remain informed without revealing how emotionally attached you may have become.
That means communicating professionally with the agent, asking sensible questions and ensuring they know you are a potential buyer.
Of course, having a professional buyer's agent represent you puts a go-between you and the agent, and puts you in a much stronger position.
If the vendor receives multiple offers or decides to sell before auction, you're more likely to be included in the conversation.
The bottom line
Buying property should not become a game of high-stakes poker, but you should still be careful about the information you reveal.
There is little value in announcing how much you love the property, disclosing your maximum budget or explaining that you urgently need to buy.
At the same time, trying to outsmart the agent by criticising the property or pretending you have no interest can work against you.
The most effective approach is to remain professional, communicate clearly and keep your negotiating position private.
A skilled buyer’s agent can also help create some emotional distance, gather useful information about the vendor and negotiate on your behalf without revealing your budget or urgency.
After all, good negotiation involves giving the agent enough information to take you seriously while keeping your most valuable cards close to your chest.





