Are Realtors allowed to advertise properties that don't exist? |
Emphatically, no.
However, the typical agent will do ANYTHING to get the phone to ring, then "switch" the buyer into another property. Please note: this is not a Bait & Switch on the property, itself. The property advertised must be active, in backup status, or in pending status to be advertised. But the agent can switch YOU into another property.
A common example is an agent who advertises "Lovely 3-BR home in beautiful neighborhood." Of course, you don't know how many bathroooms, the square footage, or whether it's a condo or a home. So you pick up the phone and call. The agent tells you, "Oh, it's a 3-bedroom, 1-bath, with 700 square feet .... but if you need something larger I do have other properties available ..."
This technique allows an agent to collect potential buyers, and build up their client base.
The agent's objective is to write the ad in a way that gets the phone to ring. Another example ad might be, "Waterfront condo. Bargain at $240K." You call to find out there's a $1200/month land lease, on top of the purchase price. It's legal. But is it still a bargain? Now the agent can open up the conversation to find out what you're really looking for, and perhaps convert you into a client.
I recently had someone ask me, frustrated, why all the properties in Huntington Beach are senior communities. Well, they're not -- but senior properties tend to be less expensive. If an agent can advertise what you think is a well-priced property, in a sought-after community, he can entice you to call. And it's perfectly legal.
That's the drawback to looking in the papers, going on the internet, and looking at the homes magazines. An agent writes an ad with the sole purpose of getting the phone to ring.
This is why you need an agent you can trust, and one who will send you properties by email -- so you can browse every available property and make up your OWN mind about what you'd like to be shown. My software searches the MLS, every night, for properties that are a perfect match for you and sends them to you as they come on the market. You won't have to search through the internet or newspapers, because you'll have your very own home data base.
Many agents won't give you an address, and require that you go into their office to be interviewed and prequalified before they'll ever take you out to look at properties. Or worse … they set you up on an automatic search, and then never call you again.
And remember, all Realtors use the same exact database, called the "MLS." From there, properties go out onto 84 different websites (and there's usually a 7-9 day lag on these websites). So you aren't missing out on anything by receiving my automatic emails. It is the freshest possible list, short of sitting in front of the MLS database and watching it minute-by-minute!
(If you’d like to receive properties as they come on the market, simply send your request to me by email.)
I often have clients who fear they are missing out on something, only to call me down the line after they've realized the advertising ploys of other agents -- to get the phone to ring!
Visit www.GoFindRealEstate.com to do a home search right now!
