Obviously suggesting that there are 'interested parties' for a property is common practice, and to be expected – but just how far can agents go with this deceit?
Can they lie to prospective buyers by saying that an actual offer/offers HAVE been made, when nothing has actually occurred?
Can they lie about the actual price of those offers, in an attempt to getaway prospective user to bid higher than they would have otherwise?
Also, are there any measures that buyers can take to gauge the reality of either claim?
Hi Jay
I'm not sure about the legalities in respect to the offer/negotiation process when purchasing real estate – but I'm pretty sure there's a rule in there somewhere that prohibits real estate agents from lying. Whether or not they all abide by the rule is a different story.
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
An agent is required to present all offers to the owners, they don't however need to tell prospective buyers whether those offers are still under consideration by the owner ie if they have been rejected. So telling you that the owner has received offers is true (but not disclosing that they have been rejected is also OK).
Can you ask for the actual amount of the other offers – and if so, to what extent is the agent bound to tell the actual truth?
Good luck proving they have lied about an offer. It'd be a messy business, word would get around town, and it would be hard for you to deal with agents in town afterwards.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
So…basically the only way of knowing that they have lied about an offer is if the promptly is still on the market in a few weeks time?
Further to this, is there anything preventing them from taking the liberty of inflating the amount of any offers – real or otherwise?
I remember inspecting a property which had a great city view but in front of it was a property under construction.
A very well respected agent in the are told me they were building a single storey property and certainly would not block my City view.
Thankfully a little bit of DD proved she was wrong but someone end up buying it and when the new house was finished there was no City view at all.
Sure misrepresentation but again try proving it.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
You just have to entertain the possibility that everything they say is a bit untruthful. Ultimately, you have to think well I don't care what everyone else is up to. I wish to pay no more than $x for this property. If someone else wants to pay a bit more they are welcome to do so. But I am not going to get all hurt and offended about being "beaten". I am often saying "I am not disputing whether or not the property is worth what the vendor is asking. However due to budget constraints, I am only able to offer $x. However my buyer means business and will act immediately. Here are the reasons we are strong buyers: ……… Do you accept my offer?"
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Good advice JacM, thanks.
Jay, if the agent has received an offer then there is nothing stopping you from submitting one also. The agent must present all offers to the vendors (make yours in writing with a sunset clause).
In the unlikely event
that the agent is lying, then they have your offer& conditions to present to the principal. They can always come back and ask you to increase the offer.
that the agent is lying, then they have your offer& conditions to present to the principal. They can always come back and ask you to increase the offer.You must be logged in to reply to this topic. If you don't have an account, you can register here.
