Gerard Hagan, co-owner and agent at The Best Edmonton Real Estate Team, argues that the most costly mistakes real estate buyers make are emotional, not analytical. According to Hagan, buyers often become attached to properties and justify financial decisions after the fact, fixate on minor inspection issues that have little impact on long-term value, and fail to properly assess whether small price premiums are significant when spread over the life of a mortgage.
“There’s a lot of emotional mistakes sometimes buyers can make,” Hagan says. “You have to help buyers recognize those mistakes and guide them so they don’t make decisions that hurt them in the long run.”
Hagan observes these tendencies in all types of buyers, from first-timers to seasoned investors. He believes the problem is not buyer sophistication, but the lack of structured, objective guidance during what is often a stressful process.
Consultant vs. Salesperson: A Different Approach
Hagan contends that the traditional real estate agent model often makes these emotional mistakes worse. Agents focused on closing deals have little incentive to help buyers slow down, analyze the situation, and separate emotion from fact.
“I act more like a consultant,” Hagan says. “I don’t sell the home – the home is going to sell itself. My job is to answer questions and guide clients through the experience.”
He draws a clear line between a consultant, who provides context and helps buyers make informed decisions, and a salesperson, who is primarily focused on completing a transaction. In Hagan’s view, buyers need professionals who help them understand the financial implications of their choices, not just someone who facilitates a sale.
Quantifying Emotional Decisions
Hagan gives a concrete example of how a consultant’s approach can help buyers avoid emotional missteps. “If a home is ten thousand dollars over their budget, you calculate what that means over the life of the mortgage. Is the extra five or ten dollars a month worth it for a home they’ll truly enjoy?”
By breaking down what a price difference means in real monthly costs, Hagan helps buyers evaluate whether their emotional attachment to a property is justified by their financial reality. He says this kind of structured analysis keeps buyers focused on long-term value rather than short-term excitement or anxiety.
Navigating Home Inspections
The emotional pitfalls are especially clear during the home inspection phase. Hagan says buyers often receive lengthy reports listing every minor flaw and struggle to distinguish between serious problems and routine maintenance.
“Helping them understand the importance of different things, like why they need a home inspection, and what to look for in the report, is crucial,” Hagan says. “If there are small things in the inspection, those shouldn’t affect the overall decision to buy the home.”
Without guidance, buyers may fixate on minor issues and either walk away from suitable properties or negotiate aggressively over repairs that have minimal financial impact. Hagan believes a consulting approach helps buyers keep perspective, focusing on material concerns rather than reacting emotionally to inspection findings.
First-Time Buyer Support
Hagan says the consulting model is especially valuable for first-time buyers, who often lack experience evaluating mortgage terms, inspection results, and market trends.
“We work with a lot of first-time homebuyers, so there are many questions about mortgages and inspections,” Hagan says. “If we can answer them, we do. If not, we let clients know and work to get answers.”
He says these buyers benefit most from structured, educational guidance that separates emotional reactions from financial considerations. The goal is to build confidence and help buyers make informed choices, not just close deals.
A Business Model Built on Consulting
The Best Edmonton Real Estate Team has structured its business around this consulting approach. Hagan and his team position themselves as advisors who guide clients through each step, from mortgage mechanics to interpreting inspection reports and understanding current market conditions.
Hagan believes this model leads to better outcomes for everyone involved. Informed buyers make better decisions, resulting in more satisfied homeowners and fewer disputes or regrets after closing.
Industry Incentives and the Future
Whether other real estate professionals will adopt a similar consulting model depends largely on how agents are compensated. The current commission system rewards agents for closing deals, not for educating or thoroughly advising clients. This misalignment of interests, Hagan argues, is why the sales-driven model persists.
Until the industry’s compensation structures change to reward guidance and education, Hagan expects the consultant approach to remain rare. For now, he believes buyers benefit most when they work with agents who act as consultants, helping them avoid the emotional missteps that can lead to costly mistakes.
