Real Estate: Secret code of agents revealed – how to understand their world of buying and selling

Real estate agents speak their own language. Understanding their secret world could help you buy your new home. READ OUR INSIDER’S GUIDE.

Real estate agents speak their own language. This article will give you a backstage, deep dive so you can become an expert in agent jargon.

The next time you are talking to an agent, you might want to flex your vocabulary to let them know you are onto them.

SECRET CODE OF REAL ESTATE AGENTS REVEALED

Chasing

Describes the desired sale price a vendor is hoping to achieve.

Conditioning

Agents use this word to describe the process of getting a vendor to accept the reality of the market.

Double-Header

A sale that involves 2 deals. Eg: a vendor who is selling and buying from the same agent at the same time.

There are words within words when it comes to real estate. Picture: John Appleyard

Dump

In reference to a property that needs to be knocked down and rebuilt.

Hammer-blow

At an auction, this is an opening bid by a buyer that is higher than expected starting point. This is generally to intimidate other buyers.

Heart buyer

A buyer who is overly emotional and pays a premium on a property.

Real Estate Agent Corrinne Olsen at a Surry Hills dump she sold. Picture: Tim Hunter.

Kicker

This term is used to describe a commission scheme that has a bonus ‘kicking in’ after a certain number is achieved by the agent on the sale of a property. Eg: the commission scale could be 1.5 per cent up to $1,000,000 then 10 per cent thereafter.

Larry the Liar

This term is used to describe agents who deceptively overprice a property to win the listing with the view that as the time goes by, they will be able to condition (see above) the vendor.

Low ball

Used to describe a buyer who deliberately puts in a low offer to see what agent and /or vendor’s response is.

Catch the code words at open homes, auctions and referring to contracts. Picture: Jay Town

Off-market

This term is used to describe a property for sale that has little or no marketing attached to it. Where the confusion lies is that there are now varying degrees of off-market sales including direct to an agency’s buyer database and social media, but not listed on the portals.

Opener

Often used to describe the opening bid of an auction.

Out of liner

Agents use this term to describe a property that sold at a lot more or a lot less when looking at comparable sales data.

Quote them low – watch them go

The disgraceful practice that a minority of agents use to attract buyers to an auction by quoting a low number to the buyers. This is also known as ‘underquoting’ and is an offence.

Catherine Murphy (left) and potential buyer, Helen Valenzuela at an open house for a Beecroft property. Picture: John Feder/The Australian.

66W

The legal term agents (in New South Wales) use to indicate that a contract of sale has been signed and there is no cooling-off period. The contract is issued by a solicitor, making the sale immediately binding.

Tyre-kicker

In reference to the buyer. The agent feels like this buyer is a waste of time as they won’t make a decision and is a chronic-looker.

V.B.

Stands for Vendor Bid. A vendor bid is a bid that an owner can make on their property during their auction. This is a way of transparent way of ‘fast-forwarding’ the auction so a sale can be secured.

Final remarks

So there you have it, a basic explanation on agent talk. Next time you’re dealing with an agent, you may want to use some of these terms to let them know you are not an amateur in a marketplace where agents appear to have the upper hand.

Tom Panos has been a highly respected figure in the local real estate industry for three decades. He is Australia’s leading real estate coach, a sough-after auctioneer, founder of Real Estate Gym and a Sky News commentator.