Choosing the right realtor is critical when buying a home, especially in a competitive market like Portland, Oregon. A good realtor advocates for you, helps you navigate the home-buying process, and ensures you get the best deal. However, not all realtors prioritize their clients’ interests. In this post, I’ll share three major red flags to watch for, inspired by insights from Jennifer Beaston, a respected VA lender on YouTube, combined with my own experiences as both a home buyer and a professional realtor in Portland. If your realtor exhibits these behaviors, it might be time to reconsider your partnership.
Red Flag #1: Discouraging Lower Offers Without Explanation
One of the biggest red flags is when a realtor discourages you from making a lower offer on a property without providing a solid reason. This happened to me in 2005 when my wife and I were buying a home in Southwest Portland. The house we liked had been on the market for 8-9 months, with issues like sloped roads and overpriced upgrades. When we asked our realtor if we could make a lower offer, she shut us down, saying, “You can’t do that in this market.” No data, no comparable sales (comps), no explanation—just a flat refusal. We were first-time buyers in a rush, so we listened and ended up overpaying by an estimated $10,000-$30,000.
When we sold the house later, we took a loss because of that overpayment. Years later, as a realtor myself, I ran into that same agent in Hillsboro around 2015. She was still in business.
Why This Matters
A good realtor should analyze comps, assess market conditions, and explain why a lower offer might or might not work. For example, if there’s heavy competition or the home is priced below market value, a low offer could risk losing the property. But if the house has been sitting on the market or has issues, a lower offer might be worth trying. If your realtor says “no” without backing it up with data or reasoning, they’re likely not acting in your best interest. This could cost you thousands, as it did for me.
What to Do
Ask your realtor for comps and an explanation of the property’s price range. A professional realtor will provide a clear rationale, such as, “There are multiple offers, so a low offer is unlikely to succeed,” or “The home’s upgrades justify the price.” If they can’t or won’t explain, consider finding a new agent.
Red Flag #2: False Claims About VA or FHA Loan Eligibility
Another red flag is when a realtor claims a home “won’t go VA” or “won’t go FHA” without evidence. Jennifer Beaston highlights this issue in her videos, noting that some agents dismiss VA loans due to minor issues, like a tear in a window screen. She explains that VA loans focus on health and safety issues, such as missing handrails, which can often be fixed before closing. I’ve seen this firsthand. When representing a seller, I dealt with an FHA loan issue involving an unpermitted apartment unit with a stove. FHA and VA appraisers often flag stoves in unpermitted spaces, but we resolved it by removing the stove before the appraisal. The loan went through smoothly. Too often, agents make snap judgments based on hearsay or a single past experience, dismissing loan programs without exploring solutions.
Why This Matters
Dismissing VA or FHA loans can limit your options as a buyer, especially if you’re a veteran or using an FHA loan to buy your first home. A lazy or uninformed realtor might steer you away from a great property or discourage you from pursuing a loan program that’s right for you, simply because they don’t want to deal with the extra work.
What to Do
If your realtor claims a home won’t qualify for a VA or FHA loan, ask for specifics. What’s the issue? Can it be fixed? A good realtor will explore solutions, like requesting repairs before the appraisal, to make the deal work. If they dismiss your loan program outright, it’s a sign they’re not willing to go the extra mile.
Red Flag #3: Pushing Specific Lenders or Discouraging Certain Loan Programs
The third red flag is when a realtor pushes a specific lender or discourages certain loan programs, like VA loans, without a valid reason. Some realtors partner with lenders who cover part of their marketing costs—like flyers, websites, or open house expenses. While this isn’t inherently wrong, it can create a conflict of interest if the realtor prioritizes their preferred lender over your financial needs. For example, I don’t partner with one lender because there’s no guarantee they’ll offer the best deal for every buyer. Different lenders have different programs and fee structures. I’ve worked with a great lender at OnPoint Credit Union who consistently offers competitive deals, but I still encourage buyers to compare multiple lenders. If a realtor insists you use “their guy” or claims VA loans are too difficult, they might be more interested in their own convenience or financial incentives than your best deal.
Why This Matters
Your mortgage is one of the biggest financial decisions you’ll make. A realtor’s job is to guide you toward the best loan for your situation, not to push a lender they’re financially tied to. Discouraging VA loans, for instance, could prevent veterans from taking advantage of benefits they’ve earned.
What to Do
Insist on comparing loan offers from multiple lenders. If you’re a VA buyer, reach out to reputable VA lenders like Jennifer Beaston or local experts like Vince Kingston in Portland. A trustworthy realtor will support your decision to shop around and won’t pressure you into using a specific lender.
How to Choose the Right Realtor
To avoid these red flags, look for a realtor who: – Provides data-driven advice, including comps and market analysis. – Explores solutions to make your offer or loan program work. – Encourages you to compare lenders and prioritizes your financial interests.
If you’re in the Portland, Oregon market, I’d be happy to assist you with buying, selling, or investing. With 17 years of experience, I focus on getting my clients the best deal possible. Contact me at 503-515-4499 for a free consultation.
Conclusion
Buying a home is a major investment, and your realtor should be your advocate, not an obstacle. Watch out for these three red flags: discouraging lower offers without explanation, making false claims about VA or FHA loan eligibility, and pushing specific lenders or discouraging certain loan programs. By recognizing these signs and working with a transparent, client-focused realtor, you can save thousands and find the right home for your needs.
Have you encountered these red flags with a realtor? Share your story in the comments below!
Shawn Realty 