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lying about pertinent facts and we're supposed to treat everybody honestly. There might be an occasional agent who would lie in an attempt to squeeze more out of you, but if I ever caught one lying to me about multiple offers, I would take them up on ethics charges in a heartbeat. I promise.
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37 Comments on You Are One of Multiple Offers! Is the Other Agent Lying?
I think we have all heard our buyers question whether or not another offer actually exists. I agree with most that a listing agent could get burned by lying as it may cause a buyer to back out and I try to explain this to my buyers when the situation presents itself. I believe most agents are up front on this issue, although I don't blame a consumer for being skeptical. I like J. Philip's idea though.
I was just asked this same question. I am an REO agent and I move A LOT of inventory. I have yet to see a listing of mine NOT have multiple offers. These deals are too good to pass up, and the investors know this. This buyer client of mine, who has bought over 29 houses from me, wanted to put in a bid for one of my listings. Of course, I told him the same thing I tell other agents, this is multiple offer situation and if you are serious about buying, DO NOT LOW BALL. Well he did low ball. And when I told him the offer was rejected, he told me to go ahead and bring the offer up. By this time the offer is already accepted...There are no second chances. If you see a good deal, then I can ASSURE you there are 5 more people that are putting in offers and probably closer to asking price because they know the property is worth it and do not want to lose it. I very rarely have a house with multiple offers that sells BELOW asking price. Keep the offers within 5% of asking price. I know people are wanting to steal these houses, but they have to understand, the lower they get their bargain, the longer it takes for that neighborhoods values to come back up. So in the long run, it is hurting them.
My client made an offer on an REO that was overpriced by quite a lot. He offered market value.
The listing agent came back saying they now had multiple offers and wanted our highest and best.
My client said that our offer is OFF THE TABLE, PERIOD. There is no way he would play that game.
Two weeks later the listing is still ACTIVE.
Don't get sucked into the multiple offer game. (Unless you're offering on one of my houses)
If you have to ask yourself if they are lying, the answer 99% of the time is YES. There's an agent in my market that always says they have an offer and they are countering it right now "but you still have time to make an offer if you hurry". Same line on every house. Kind of funny.
We have had our fair share of multiple offers on our listings, but until I read your post I had not thought of lying about it. I can't and do not want to believe that some agent would be so desperate as to fabricate a multiple offer situation. It violates so many aspects of being a REALTOR it would take an hour just to type up.
I loved how your post generated so many great comments about a properly priced home in great condition WILL generate multiple offers. We as listing agents should always strive to educate our sellers on this fact.
Had the same recently, 3 offers in one day on a property on the market for 6+ months-you have to be kidding me. But the listing agent was right there showing us each contract with pertinent info blacked out. We did not even had to ask, he knew we were all bound to be suspicious.
I have a studio coop that has been on the market for what feels like forever.
In the last week I did get 2 offers on it - who would have thunk it?
It is getting harder and harder to have a trust level within our industry after seeing and reading all these blogs on how agents are just cutting so many corners. I would definitely want proven evidence of these other offers. With escalation clauses, that verbiage is built in.
Oh my- I'm not used to getting comments!
Eileen- Thank you! I think I got the photo from Istock Photo or Big Stock Photo. You can buy a license for pretty cheap. They have multiple licensing options.
Karen- Better mood today. My business partner and I were in 4 multiple offer situations this week (and it was only Tue). The good news- our buyers won out in 3 of the 4.
Jack- I would wonder in their position, too. I'm sure it happens on rare occasion, but I can't think of any time recently that I felt a listing agent lied to me about the amount of offers.
I will be back to address the rest of you shortly.
Word travels fast who the unethical people are so honesty is always the best and should be the only policy.
Over half of my buyers offers have been in multiple offer situations over the last few months. REO listings are being priced to move and too many short sale listings are being drastically underpriced in order to attract attention and bring offers to the bank. I appreciate your light hearted take on this "CRAP!"
Amen, I hear that question almost every time a multiple offer situation comes up. I am glad you got to vent a bit and feel better myself.
LOVE that picture!
The multiple and over asking offer thing is making it all the more difficult to price property and educate our buyers and sellers. In our market, it's more like the dotcom mentality-you have to underprice to get people to write offers-and when they do, they write over. If you price appropriately, it might sit on the market-with eventual price reductions. And then, of course, there's all the listings that are so severely overpriced. Why are agents taking overpriced listings? Don't they have enough to do?
Yep, we're seeing multiple offers on good, well kept homes that are priced RIGHT.
Had an offer in on a REO last week. It's been listed for about 3 months and no activity really. We were on our third counter with the bank when the LA sent me an email that he was getting another offer. I was immediately suspicious but an hour later, he sent another email notifying me that were in a multiple offer situation and needed our highest and best by 9 a.m. the next day. Thankfully, he copied both agents on the same email so there was no doubt about what was going on!
We are also seeing more buyer interest which is leading to multiple offers. Hard to believe, but even in this market homes are selling for asking price.
Barbara- I think we're going to see multiple offers where there's a high foreclosure rate
Margaret- I always ask before we write if there are any other offers. I have also have buyers not write if they felt they were getting into a bidding war
Sally and David- That seems to be the one constant in any market. Well priced = quick sale= probable multiple offers
Tracie- Regular sellers need to price like a short sale or bank owned in order to sell. I'm finding in this area that no matter how long a house has been on the market, they usually sell within 2 months of hitting their final asking price. Some of the regular sellers eventually just decide to stay or keep reducing.
Andrea and Darrin- This is a time for some to build wealth. Price will come back. In the meantime there is an increased need for rentals. I have a client who is a local teacher who has bought 3 houses so far- each house payment under $500/month and getting around $1000/house.
Jeffrey- I'm in 100% agreement
Laurie- Sometimes it takes losing a few before they believe us
Irene- That happens here too- buyers backing out right at the end and if the price negotiated was a good one there are plenty of buyers rushing to replace the original. Then it becomes a matter of the strongest buyer who meets the required price.
Sheila- I'm seeing more cash buyers than ever in the past.
Bryant- It is a rare occurrence. There's no real benefit to lying- houses still have to appraise, too (unless it's cash)
Claudette- We all deal with people for a living. If something feels hinky it's worth asking for proof.
J. Philip- That's a great solution. Also, when you've been around a while you get to know who's honest and who to question. There doesn't seem to be a big influx of new agents lately.
Michael- If he always does it, nobody will believe him when it's true
Dan and Amy- I like J Philip's idea too. I understand buyers questioning the existence of other offers. Some of the foreclosure agents are putting H&B until X date in the MLS remarks after they've started receiving offers. That may help.
Ginevra- Sometimes they are shocked when their offer isn't countered. Why counter an offer that's not good enough when there's as least one that is acceptable.
Bill- There could be multiple low offers. And I'm sure some agents lie- I just don't think is common place.
Andrew- If I have to ask if they're lying, they probably are. The buyers don't communicate with the listing agent directly so it's understandable when they question what they're told. There used to be an agent here who always had other offers- I'd relay the info to the buyer along with the fact he always says the same thing. Becomes a grain of salt
Brent and Deb- I don't think most agents lie about multiple offers. Most are honest. Some who may be less than honest probably won't see and advantage in lying
Corinne- If I'm on the listing side and I feel the buyer's agent is suspicious I'll offer up proof. I also pend in the MLS quickly
Donna- that happens. Hope at least one was acceptable
Don- I trust most of the agents I deal with. A lot of what we read about bad behavior of other agents is from one perspective and condensed enough to fit into a readable post
Kiersten- Totally agree
Jason- I can laugh or cry. Used to work only with sellers. I'm working heavily with buyers now- I hate telling someone they're worth less than they owe and what is the best course to screw up their credit the least.
Jeremy- Thank you- I do feel better. We were in 4 multiple offer situations just this week.
Eric- there have always been a high per cent-age of over priced listings and always will be. Not everybody has the same motivation. Some don't want to believe the comps- holding out hope?
Erica- Same here and it doesn't matter who owns them- bank, short sale or regular sale. Properly priced houses sell quickly
Gayla- At least the listing agent was smart enough and thoughtful enough to send to you both- takes away suspicion from the get go
Tammie- Prices have come down enough to broaden the buyer pool.