An Australian real estate agent has shed light on a widely disliked tactic used in the industry, revealing how it works and why it has become so prevalent.
Josh Lloyd, a leading agent at Harcourts Newcastle, has sold around 58 properties in the past year. Recently, he appeared on the Australian Property Show podcast, hosted by property expert Tom Haigh, where he explained some of the tactics real estate agents use to secure the best possible price for properties.
One tactic that has drawn ire from buyers is the common omission of a listed price for properties. Instead of showing the price, listings often feature terms like “contact agent,” “price guide on request,” or simply “auction.” This practice frustrates many potential buyers, as they must go through additional steps to find out if a property fits their budget. Buyers have vented their frustrations on social media, criticizing the extra effort required to obtain a price guide.
“Why is this a thing? It drives me nuts. The seller and the agent know exactly what they want. Why can’t they just provide a price range?” one person complained.
Despite the backlash, Josh Lloyd explains that withholding the price guide is a deliberate strategy to ensure the best possible outcome for the seller. For the first week of a property’s listing, he does not advertise a price publicly. However, when prospective buyers inquire, they receive an automated email with the price guide. This, according to Lloyd, allows agents to gather valuable data on interested buyers.
Lloyd explained that this approach works by casting a wider net. For example, if a property is listed for $1 million, the goal is to attract buyers who are willing to spend between $920,000 and $1.1 million. If the initial asking price proves too high, the agent has the contact details of those who were interested but could not afford the listing, allowing them to return to these buyers with a revised offer.
“We always give them a guide. It’s just in that initial week, I want to protect my owners to make sure I have all of the data I need,” Lloyd said.
For those buyers who want to bypass this tactic, mortgage broker and former buyer’s advocate, Kobe Clarke-Jacobs, has revealed a simple hack to uncover the hidden price guide. By using a few keyboard shortcuts on a computer, buyers can access the background coding of the property listing and find the price range that may not be visible on the page.
Additionally, Lloyd discussed another common strategy known as “off-market showings.” Before a property is listed publicly, agents often invite potential buyers from their existing databases to preview the home. This early access gives agents a strategic advantage, as interested buyers feel the “fear of missing out” (FOMO), motivating them to offer a higher price in order to secure the property before it hits the open market.
Lloyd explained that leveraging this sense of urgency helps create a competitive environment, where buyers are willing to pay more to avoid losing out on a property they’ve already seen and liked.
These behind-the-scenes tactics are part of a broader effort to navigate the competitive and often challenging real estate market, where securing the best price is key to success.
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