Do EAs make up 'offers'?

jjlandlord

Anyone that had to deal with any kind of commercial negotiation knows that making stuff up is standard.
Of course, it can backfire.

ManuelG

ScorpiondeRooftrouser wrote: »

The few extra thousand does make a difference to your customer though, and as they are paying you to get the best possible price, why not?

Yup, you're more likely to use them again when you buy/sell in the future if you get a good price, and you're more likely to tell others to use that estate agent too.

Yep it can backfire (the potential buyer tells people *not* to use that agent!) but if skilfully done, then who's to know. And if everyone's happy with the price...

Surrey_EA

ScorpiondeRooftrouser wrote: »

The few extra thousand does make a difference to your customer though, and as they are paying you to get the best possible price, why not?

I don't think making up an offer is necessarily unscrupulous; it's a negotiating tactic. All you are really saying is that your customer wants more money. The reason why isn't material.

It is completely unscrupulous, and a serious breach of the Estate Agents Act of 1979 for an EA to invent an offer.

If the offer isn't high enough, and the vendor wants more money the EA should say exactly that, making up a fictitious offer is not the answer.

caronoel

Surrey_EA wrote: »

It is completely unscrupulous, and a serious breach of the Estate Agents Act of 1979 for an EA to invent an offer.

If the offer isn't high enough, and the vendor wants more money the EA should say exactly that, making up a fictitious offer is not the answer.

May well be a breach of the law, but how would a purchaser prove it?

What would their remedy be?

Surrey_EA

caronoel wrote: »

May well be a breach of the law, but how would a purchaser prove it?

What would their remedy be?

Not easily, unfortunately.

I am of the opinion that EAs making up offers is nowhere near as common as has been suggested. It is right that an EAs job is to achieve the best price for their client, but making up other offers and jeopardising a genuine sale is not the right way to do it in my view.

ScorpiondeRooftrouser

Surrey_EA wrote: »

Not easily, unfortunately.

I am of the opinion that EAs making up offers is nowhere near as common as has been suggested. It is right that an EAs job is to achieve the best price for their client, but making up other offers and jeopardising a genuine sale is not the right way to do it in my view.

It doesn't jeopardise the sale. You can always go back and say that the other offer never materialised or fell through or "the vendor has decided you are in a better position". You must know this. It's happened to me a number of times.

As for the breach of the Act you can always cover your back as offers are of course not worth the paper they are not written on. Who can say whether somebody phoned you and offered X amount then pulled out a few hours later. And if you are really worried you just say that you are sure somebody else is about to make a higher offer.

Windsorcastle

ScorpiondeRooftrouser wrote: »

The few extra thousand does make a difference to your customer though, and as they are paying you to get the best possible price, why not?

I don't think making up an offer is necessarily unscrupulous; it's a negotiating tactic. All you are really saying is that your customer wants more money. The reason why isn't material.

Of course a seller wants the best price, but then why don't they market the property at the price they want, instead of just getting greedy once they get some interest?


When I sold my last property, I accepted an offer and then a week later someone who had viewed it previously made a higher offer. I was tempted of course, but I felt that I had made an honourable agreement with my buyer, who had already instructed a solicitor, etc, so I thought it would be bad karma to ditch her and go for the higher offer. As it is, the sale went through smoothly and I absolutely felt it was the right decision rather than screwing someone over for a few thousand more in my pocket.

ScorpiondeRooftrouser

Windsorcastle wrote: »

Of course a seller wants the best price, but then why don't they market the property at the price they want, instead of just getting greedy once they get some interest?


When I sold my last property, I accepted an offer and then a week later someone who had viewed it previously made a higher offer. I was tempted of course, but I felt that I had made an honourable agreement with my buyer, who had already instructed a solicitor, etc, so I thought it would be bad karma to ditch her and go for the higher offer. As it is, the sale went through smoothly and I absolutely felt it was the right decision rather than screwing someone over for a few thousand more in my pocket.

You are assuming valuing property is an exact science. People want as much as they can get for their houses. They market them at the value that seems best to achieve that, but if events of the first weeks show that a mistake may have been made, they change things.

In addition you are talking about a situation where an offer has already been accepted. I am talking about the situation before the offer has been accepted and negotiation is still continuing, as was the OP.