Can an estate agent lie about another offer?

Question

I just put an offer on a flat. Then I heard from the estate agent that there were two other higher offers. What does the estate agent legally need to tell me? Could this be a compete lie to get me to bid higher.

i'm in england

Answer 1

I work in an estate agents and we at our company would not do that.
Can't speak for other companies but it is a possibility.
Depending on how low your offer is, I would go back and raise it a little and say it's your best and final offer.
If there are other offers, you'll find out then if yours is the most acceptable one.
Don't forget, though, that it isn't necessarily the highest offer that wins, your situation will be taken into account too. I would rather accept a cash offer that is £5k less than one from someone who is in a long chain.

Answer 2

It is possible that the agent could be lying to see if you will increase your price. However it's also possible that there are more offers. Was your offer rejected or did the agent tell you that they were presenting multiple offers and wanted to know if you would be willing to increase your price?

If you are still interested in the property then re-submit your offer at the same price however include an escalation clause. This is a statement that says that you will increase the purchase price by X amount (say $500 for example) over the next best bonafide offer, based on sellers net (not sales price), up to a total sales price of $$$ (whatever is the max you are willing to pay on this property). Also state that seller to provide evidence of next best offer. This way you will have proof that there were other offers. Talk to your attorney about escalation clauses.

Also request that sellers sign if they reject your offer. Sometimes an agent will not even present your offer if they have some vested interest in another offer they are presenting (for example if they are representing the buyer as well). Yes this is illegal and unethical but we all know that not all agents are honest. And this of course makes it hard for the rest of us who are trying to do the right thing.

And ask the agent if there is anything else you could do to make your offer more attractive to the sellers. It isn't always about the money. Perhaps sellers are concerned about closing date or maybe being able to remain in possession for a week or two after closing to facilitate moving. The agent may or may not tell you but it wouldn't hurt to ask.

Good Luck.

Answer 3

Being an agent myself, I can tell you for a fact that some Real Estate agents will lie. Lieing is illegal and unethical. Probably why Real Estate agents rank up there with lawyers. If you can prove the agent has lied, then you can report them to their Broker, their Board of Realtors and the State Commission. Agents are subject to fines and/or loosing their license. Depending on the lie and how it affected your transaction, you may can even sue for damages.

Real Estate agents only need to inform you that your offer was refused or accepted. They do not have to say whether there was a higher offer or not. Sometimes the agent doesn't know the reason. There may be another agent involved - the listing agent. It is somewhat immaterial if your offer was rejected. If so, you and your agent can discuss options such as a higher offer. Sometimes, the lower offer may be accepted. Nothing says the seller has to accept the higher offer. Sometimes higher offers may have contingencies that the seller doesn't like. On the other hand, the seller could lie saying they are considering higher offers hoping you will increase your offer. Your agent may or may not be aware of the seller's lie and will inform you as to the reason for your offer rejection.

If your agent knowingly lied to get a higher offer from you, that is unethical and illegal. If you can prove it, do as I said up above.

Answer 4

Its in the interest of an estate agent to do a quick deal rather than up the price for the simple reason that 5% or whatever of an extra £10 grand is peanuts when they could be tying up a deal and off on the next one. If you want the flat you may have to bid a bit more. Ask them how much.

Answer 5

The devil is in the details. Who made the offers and what is their relationship to all the parties? You'll never know but what if the real estate company makes standing bids at 50% of asking price and the bank does, too? That's two offers right there. Personally, if you have a Buyers Agent I'd merely tell him your best offer and then step back and wait. Never be pressured into a bidding war.

Answer 6

They shouldn't, some probably do, but it would be nearly impossible to prove.
The best advice I can give to anyone, anywhere in any kind of
'bidding' situation is, don't fall in love with the item. Be prepared
to walk away from it if it doesn't go your way.
If the deal starts to turn sour, it could be that there is something
about the flat, the car, whatever, that you missed and would be
unhappy with later on. Listen to your inner self, it will guide you.
Always, always, set your top bid/payment in your mind before you
say anything. What is it worth to you? Start lower, work you way
up to your top amount and don't go over that amount! Ever! Walk
away and find a better item elsewhere.
It's worked great for me ever since I figured out that when you bid
on something, you have automatically set yourself up to buy it!
THAT is what they count on. Don't fall for it.
Good luck.

Answer 7

it could be a lie. some realtors however, would not lie because it is illegal to do that for a higher offer. ask how much the other offers were. my mom is an agent, but she says its morally wrong to lie about that, however others may not.

Answer 8

They all lie,if I was you I'd stand by my offer and not up it a penny more.

Answer 9

its possible they are lieing, the best thing to do is stand firm by your offer and see what they do.

Answer 10

Yes some get back handers of their clients.