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Downplaying building defects might push a deal across the line today, but it risks inflicting lasting damage on an agent’s credibility, referral pipeline, and long-term career. REB sits down with one inspector who lifts the lid on this unethical practice.
Across the property sector, stories of agents glossing over poor building reports or dismissing defects as “minor” have become depressingly familiar. In some cases, the consequences have been severe, including suspensions for withholding information from buyers.
But beyond regulatory action, there is a quieter, more corrosive cost: the erosion of trust that can end an agent’s career long after a deal is done.
Myles Clark, founder of Aus Property Report, told REB that buyers are acutely sensitive to any attempt to brush defects aside and will quickly form a negative view of the selling agent.
“Buyers see straight through it,” Clark said. “They can tell when an agent is trying to push a sale through by dismissing a report.”
He said that once doubt takes hold, it is almost impossible to undo.
“The doubt the buyer has for the agent becomes entrenched. That buyer will never respect the selling agent again. I’ve had clients refuse to deal with agents for other homes, and they certainly won’t use them when it comes time to sell. That relationship is gone,” he said.
“Buyers aren’t idiots.”
Clark said this distrust is magnified by the already fragile public perception of real estate agents.
That perception was laid bare in the Governance Institute of Australia’s 2025 Ethics Index, which showed real estate agents recorded a net trust rating of minus 22 per cent, the lowest of any of the 10 mainstream professions surveyed. The result marked a further four-point decline from the previous year.
“It’s unfortunate, but there is a stereotype that real estate agents are dodgy,” Clark said. “We know that’s not always true, but it’s what home owners expect. So any seed of doubt or subtle mistruth has a ten-times effect.”
Yet Clark argues that honesty, often viewed as a commercial risk, is in fact an underused selling tool.
Being upfront about defects, he said, can help agents quickly identify the right buyers, particularly renovators, builders or investors, without necessarily forcing a discount.
“I inspected a home that needed a significant amount of work,” he said. “The agent was simply open and honest from the outset and didn’t waste time with buyers who weren’t interested in large-scale renovations.”
The agent disclosed the major defects, encouraged prospective buyers to speak directly with the inspector, and allowed them to make an informed decision.
“I spoke to multiple people and gave them the cold, hard truth. They were all appreciative, and they respected the agent for being upfront,” Clark said.
“One of them ended up buying the house at the asking price, with no discount. She understood the issues and felt no pressure. She respected the honesty and made her own call.”
Clark said the lesson for agents was clear: sales come and go, but reputations last decades, if they can be repaired at all.
“Better to be honest than dishonest and erode your reputation,” he said. “Building back from a bad reputation is a tough gig.”
He was also blunt about where responsibility lies.
“It is not your fault the house has defects. It’s not the fault of the inspector for identifying them. The defects are the defects,” Clark said.
“As long as the buyer is aware of the critical issues, that’s it. You’re an agent, not a construction expert. Don’t try to explain them away.”
Rather than attempting to manage perceptions, Clark urged agents to manage processes, starting with credible, independent inspections.
“Get yourself a thorough, non-biased building inspector who puts their clients first,” he said. “The report for a vendor should be the same as the report for a buyer. No bullshit.”
He said working closely with inspectors and trusted trades could help agents properly contextualise defects, outline realistic pathways forward, and position properties honestly in the market.
“Find the right buyer,” he said. “Don’t waste your time or theirs. Be upfront. They’ll appreciate it. The vendor might complain, but the condition of the home is not your responsibility.”
In an industry already struggling for trust, Clark’s message is stark: one misleading sale may cost far more than commission. It may cost an agent their future.
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