The U.S. housing market has cooled down slightly from the red-hot frenzy of 2021, but home prices are still climbing. According to the National Association of REALTORS (NAR), the median home price in August reached $416,700, marking a 3.1% increase from last year.
While mortgage rates are gradually dipping, inventory is improving, and the Federal Reserve is expected to make additional interest rate cuts, the home-buying process remains competitive. Having the right real estate agent can make things easier, but how you communicate with them is just as important.
To avoid losing negotiating power or ending up with a deal that’s not in your favor, here are three things you should never say to a real estate agent when buying a home—and what to say instead.
1. Never Reveal Your Income and Savings
Just like you wouldn’t casually share your salary with acquaintances, you should also avoid discussing your personal finances with a real estate agent. While it’s essential to be clear about your budget, your actual income and savings are details best kept between you and your mortgage lender.
Why? Real estate agents earn commissions based on home prices. If they know you can afford more than your stated budget, they may push you toward pricier homes to increase their earnings.
What to say instead:
- “I have a pre-approved loan, and my budget is set at $300,000. Let’s focus on properties within this range.”
- “I want to stick to a mortgage payment that’s no more than 30% of my monthly income.”
By setting clear budget expectations, you prevent agents from upselling you on homes beyond your comfort level.
2. Don’t Mention That You’re Searching for Homes on Your Own
It’s common for buyers to browse listings online or visit open houses, but revealing this to your real estate agent might make them put in less effort on your behalf. Agents only get paid when they close a deal, so if they think you’re working outside of their recommendations, they might deprioritize your search.
That being said, if you feel like your agent isn’t showing you the right homes, it’s okay to bring it up professionally.
What to say instead:
- “I’m looking for a home with X and Y features, and I haven’t seen anything that meets my needs. Do you have other recommendations?”
- “I appreciate the listings you’ve shown me, but I’d love to see more options in a specific neighborhood.”
This keeps your agent engaged without making them feel like they’re competing with your independent search.
3. Keep Your Excitement in Check When You Find a Home You Love
It’s exciting to find a home that feels perfect, but showing too much enthusiasm in front of your agent can hurt your chances of negotiating a better price. If your agent knows you’re emotionally attached to a property, they may not push for price reductions, and if they share information with the seller’s agent, you could lose leverage in negotiations.
What to say instead:
- “I like this home and want to make an offer, but I’d like to discuss strategy first.”
- “This property fits my criteria. What do you think would be a competitive yet reasonable offer?”
If you’re in a multiple-offer situation and truly want the home, you may need to be more upfront with your agent so they can help you secure the deal. But in most cases, it’s best to play it cool and let the negotiations unfold strategically.
Final Thoughts
Navigating the home-buying process requires both strategy and discretion. While real estate agents are there to help, they also have their own incentives. By carefully managing what you share, you can keep more control over your purchase and ensure you get the best possible deal.
Be mindful of how you discuss your finances, remain engaged without undermining your agent’s role, and don’t let your excitement impact your bargaining power. Buying a home is one of the biggest financial decisions you’ll make, and a smart approach can save you thousands in the long run.
Disclaimer: This article has been meticulously fact-checked by our team to ensure accuracy and uphold transparency. We strive to deliver trustworthy and dependable content to our readers.