5 Signs You’ve Got a Bad Real Estate Agent Who Will Cost You Thousands
Written by
Laura Bogart
Edited by
Kristen Mae
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In an ideal world, you and your real estate agent would be true partners, working hand in hand to find your dream home or sell your house for top dollar. But as anyone knows, the world is far from ideal.
The agent who inspired confidence with a firm handshake in their office might suddenly stop returning your calls. And that highly recommended agent — your second cousin’s best friend’s neighbor swore by them — might leave your house lingering on the market for months.
Not all real estate agents are created equal, and some fall far short. But how do you know you’ve got a real lemon of an agent on your hands? GOBankingRates explored five red flags you shouldn’t ignore.
They Don’t Know The Local Market
When you hire a real estate agent, you’re putting a lot of faith in their expertise — especially their knowledge of the local market. Unfortunately, not all agents have a deep understanding of the area where they work.
An agent who isn’t as engaged or doesn’t have a track record of success in the region may struggle to answer even basic questions. According to Josh Wilson, realtor at That Florida Life, this kind of information should come right off the top of an agent’s head.
“A truly experienced buyer’s agent who’s handled lots of successful transactions and knows the area should be able to give you tons of information quite easily,” he said. “Of course, some specific details may need to be confirmed, but a lot of it they should really know by heart from their experience.”
They Don’t Follow Up — Even on Small Things
For Walter Johnson, founder and CEO of Sonos Capital — a real estate investment firm that works with accredited investors — one of the biggest signs of a bad real estate agent is a lack of follow-up.
Even something as minor as delayed email responses or slow answers to your questions can indicate a lack of passion and commitment. And that can ultimately impact their ability to get you into a new house, or sell yours, for the best deal.
“Another red flag I see a lot is someone who is hands off. When a real estate agent tells you that you don’t need to do anything and they will update you ‘if anything comes up,’ run,” he said. “You need to choose a real estate agent who almost over-communicates, as they’ll keep you informed of everything going on and typically will help you close on your home quicker, whether you’re buying or selling.”
They Overpromise and Underdeliver
Perhaps you’ve been dazzled by a real estate agent who promises the sun and the moon, but when it comes time to deliver, you’re left staring at an empty sky. If your real estate agent talks the talk but can’t walk the walk to put the keys in your hand or replace the “for sale” sign with “sold,” they’re probably wasting your time and money.
Ryan Nelson, founder of PropertyBuild, warns against agents who promise unrealistically high sale prices or a lightning-fast close — without justification. In his opinion, these agents are often inexperienced or desperate.
“Get a second opinion on pricing and timelines from another agent or appraiser,” he said.
They Don’t Have a Marketing Plan for Sellers
Another major red flag Nelson warns sellers to watch out for? They flat out don’t have a plan for marketing your home.
“If your agent can’t articulate a detailed strategy for marketing your home — including professional photography, virtual tours, and targeted online ads — they’re not equipped to attract top-dollar offers,” he said.
Before signing a listing agreement, Nelson suggests asking the real estate agent for a written marketing plan. If they don’t provide one, you should keep looking.
They’re Poor Negotiators
When it comes to negotiating, you want an agent with a spine of steel — not a wet noodle who folds at the first sign of pushback. Nelson says you can learn a lot by observing how your agent handles initial offers or counteroffers. If they seem too passive or hesitant, that’s a problem.
“An agent who caves too quickly to buyer demands or fails to advocate for your best interests can cost you money, whether it’s a lower sale price or missed concessions,” he said.
A skilled real estate agent should always negotiate confidently on your behalf, ensuring you get the best possible deal.
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