How do real estate brokers manipulate?
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Real estate brokers can use various tactics to manipulate both the market and their clients' perceptions. Here are some key practices identified by trusted experts:
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Market Control: Large companies like Zillow and Opendoor can manipulate the market by buying up significant portions of properties in specific areas. By controlling a large number of listings, they can artificially influence prices by releasing or withholding properties from the market, potentially driving prices up or down at will 1.
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Conflict of Interest: Real estate agents often have incentives that can conflict with their clients' best interests. Agents might push for quicker sales to receive their commission faster, even if it means not getting the best deal for the client. There's academic literature highlighting that agents tend to keep their own properties on the market longer and sell for more, suggesting a misalignment of interests 2.
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Use of Personal Tactics: Barbara Corcoran shared that in her experience, manipulation can also occur on a personal level. She used flirtation and personal charm to influence developers and gain control over large development projects 3.
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Emotional Manipulation: Brokers can increase emotional stakes for all parties involved, making transactions more stressful and pushing clients toward faster decisions. This technique can lead to higher commissions for brokers as they expedite the process 4.
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Advice Manipulations: Some brokers may give unsolicited financial or regulatory advice to push clients towards decisions that best serve the brokers' interests, rather than the clients'. This approach can lead to clients accepting offers or making sales that don't maximize their financial benefit but ensure quicker transactions for the broker 5.
For further details on these practices, refer to the discussions in episodes from podcasts like and .
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