When Markets Get Tough, Deceptive Practices Rise
How Smart Homeowners Protect Themselves From Deceptive Practices When Selling a Home
There’s an old saying in business: pressure doesn’t create character, it reveals it.
Real estate markets are no different.
When inventory rises, buyer demand softens, and transactions slow, most professionals double down on skill, honesty, and education. Unfortunately, a small percentage take a different route — cutting corners or using deceptive practices to win business.
Below are five common real estate scams or misleading tactics we see surface more often in challenging markets, including how they work, why they hurt homeowners, and how to protect yourself.
1. The Pricing “Bait and Switch” (Most Common Today)
How It Works: An agent intentionally overvalues your home during the listing appointment to:
- Beat out competing agents
- Secure the listing agreement
- Tell you what you want to hear, not what the market supports
Once the home is live and showings are slow, the conversation quickly shifts to:
- “Let’s try a small price reduction…”
- Followed by another… and another…
Why It Hurts Sellers
- Homes priced too high sit longer, signaling problems to buyers
- Longer Days on Market often lead to lower final sale prices
- You lose early momentum, when serious buyers are watching most closely
Important truth: Sellers don’t set market value. Agents don’t either. A ready, willing, and able buyer does, by making an offer.
How to Avoid It
- Ask for multiple pricing scenarios, not just the highest number
- Don’t choose a real estate agent based on list price. Choose an agent based on experience, education and value
- Request sold data, not just active or pending listings
- Beware of anyone who guarantees a price without market support
2. Inflated Buyer Offers That “Fall Apart”
How It Works: Some agents encourage buyers to:
- Submit an aggressive offer to win the deal
- Then renegotiate heavily after inspections or appraisal
This can include:
- Excessive inspection objections
- Manufactured repair demands
- Pressure to reduce price late in the process
Why It Hurts Sellers
- Deals collapse after weeks off-market
- Your home returns as a “back on market” listing, raising red flags
- Buyers gain leverage while sellers lose negotiating power
How to Avoid It
- Work with an agent who vets buyers and lenders thoroughly
- Evaluate offers based on:
- Financing strength
- Tight dates and deadlines
- Inspection strategy
- Appraisal risk
- Earnest money commitment
3. Misleading “Net Sheet” Projections
How It Works: A net sheet is supposed to estimate what you’ll walk away with. Some agents:
- Underestimate closing costs
- Ignore concessions trends
- Minimize repair or negotiation risks
- Don’t provide a net proceeds sheet at all
The result? A number that looks great, but isn’t realistic.
Why It Hurts Sellers
- Surprise costs at closing when you are already committed to the sale
- Financial planning mistakes
- Broken trust late in the transaction
How to Avoid It
- Ask for conservative, best-case, and worst-case scenarios
- Ensure concessions and typical buyer requests are included
- Review fees line-by-line, not just the bottom number
4. “Buyers Are Lining Up” Pressure Tactics
How It Works: Statements like:
- “We already have buyers waiting”
- “This will sell instantly”
- “Homes like this never last”
…are sometimes used to push sellers into:
- Signing quickly
- Overpricing
- Skipping due diligence
Why It Hurts Sellers
- Decisions made emotionally instead of strategically
- Unrealistic expectations from day one
- Disappointment when reality doesn’t match the promise
How to Avoid It
- Ask: Where are those buyers now?
- Demand current market stats, not anecdotes
- Choose professionals who prepare you with data, not hype you
5. Cutting Corners on Marketing & Exposure
How It Works: In slower markets, some agents:
- Take photos themselves or reuse old photos
- Skip staging guidance
- Limit exposure to save money
- Not using all the tools like video and social media
All while blaming the market for poor results.
Why It Hurts Sellers
- Fewer qualified showings
- Weaker buyer perception
- Buyers ruling out the home because of poor online presentation
How to Avoid It
- Ask for a written marketing plan
- Confirm professional photography, pricing strategy, and launch timing
- Look for teams that invest before problems arise
- Ask what the marketing strategy is month 2, month 3 and so on. Do they have a long term plan?
Markets Don’t Hurt Sellers, Bad Strategy Does
Difficult markets demand:
- Honest pricing
- Clear communication
- Strong negotiation
- Data-backed advice
The right real estate team doesn’t tell you what you want to hear.
They tell you what you need to know and guide you confidently through it.
How to Protect Yourself as a Seller
Before hiring any agent, ask:
- How do you determine price? And what data do you rely on?
- What happens if the home doesn’t sell in the first 14–21 days?
- How do you protect me from unnecessary price reductions?
- How do you evaluate buyer strength beyond just the offer price?
A reputable team welcomes these questions.
An unscrupulous one avoids them.
Thinking About Selling in Today’s Market?
We believe education and experience beats pressure, and strategy beats shortcuts. Especially when conditions are challenging.
If you want:
- Straightforward pricing guidance
- Honest market feedback
- A plan built to protect your bottom line
We’re always happy to have a conversation. No hype, no pressure, just clarity.
Because in any market, integrity still matters.
Written by Nathan Weinland, leader of the Weinland Team at RE/MAX Alliance
Phone: (970) 690-4088
Email: Sales@TheWeinlandTeam.com
Written by fortcollinsexperience
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