Can an estate agent lie about a rival bid?

TessaW_2

Am bidding on a house and the estate agent has said there is a rival person bidding on the house too? Each time I go a bit higher she says they've outbid me - is there a possibility that they're just making this up in order to push me higher or is this unlikely?

SquatNow

Probably. It's not illeagle but it can be bloody stupid as you might pull out completely and then they've lost the sale.

Decide how much you want the house. If the "bidding" goes above that much just walk away. If the estate agent comes back quickly and says the "other bidder" has pulled out, start bidding down... "I've got another house I'm looking at and the seller is prepaered to accept £xxx,xxx... how much lower are you prepared to go"

It's now a buyers market. All 6 of them.

olly300

is there a possibility that they're just making this up in order to push me higher or is this unlikely?

Some estate agents play those games.

Others just give an indication (or say) what the vendor will accept.

Decide on the maximum amount you will spend and walk away if it goes over that amount.

Running_Horse

We were told we had a rival bidder so pulled out, but funnily enough the house was still on the market weeks later. As Olly said, decide how much the house is worth to you, then be prepared to walk away.

flying_solo_2

As a victim of a "bidding war" the answer is YES! I was fortunate enough to have pre-arranged a 2nd viewing on the house i fell in love with the same day my war started! By the time of the appointment i had increased my offer 5 times(10k more) each increase i made was too small to 'beat the opposition'!!! At the 2nd viewing the vendors mum apologised that her son was running late but that he was over the moon that we'd agreed a fair price... when he arrived he was stunned and bemused at my sarcasm(i couldn't help myself!) It soon became apparent that he hadn't spoken to the agents that day and was as shocked as me that there was another person making offers...In an effort to convince me of no foul play on his part he called the agents claiming i hadn't kept my appointment and asked was there a problem,he was told absolutely not and that they were about to call him to let him know that i was so committed to buying the house that i'd increased my offer substantially that morning to secure it!!!!!!! The vendor sacked the agent there and then informing them that he was proceeding with the sale with me and not to expect their fee... How could they refuse? We did proceed at the original price agreed and the vendor saved on fees. I WAS LUCKY but as always BUYER BEWARE!! Good luck tessawoolfson..x

Conrad

Unlikelt. EAs never want to risk losing a buyer as this could mean thousands in comission lost whereas the gain say on an extra £10,000 would be about £200 commission, so not worth the risk.

flying_solo_2

Yes but greed is greed and if you find a lemon you squeeze it.. I was a lemon telling the agents the house seemed to good to be true for the price!!!
EASY MONEY!!

arrgee

TessaW wrote: »

Am bidding on a house and the estate agent has said there is a rival person bidding on the house too? Each time I go a bit higher she says they've outbid me - is there a possibility that they're just making this up in order to push me higher or is this unlikely?

Make your offer and walk away. If there is another person offering more let them. But as I have discovered, estate agents will soon be in touch if your offer is bonafide.

Going through this right now. Made an offer on Monday, rejected on Tuesday, but didn't offer more, and then on Thursday the other bidders suddenly couldn't afford the property, so asked to increase bid again! I did a little, but again rejected so just left the offer again.

IF they come back again I will be offering less than my first offer. As then I'll know the house is definitely not selling!

Estate agents are guilty of raising seller's expectations and not vetting purchasers. Lying is a bit strong, but I suspect they do get fairytale bidders (people who seriously can't afford the property, and they would know this) involved in order to up the offers from bonafide bidders.

neverdespairgirl

Is the Pope Catholic?

maninthestreet

Conrad wrote: »

Unlikelt. EAs never want to risk losing a buyer as this could mean thousands in comission lost whereas the gain say on an extra £10,000 would be about £200 commission, so not worth the risk.

Do you have any more fairy stories for us??

zappahey

maninthestreet wrote: »

Do you have any more fairy stories for us??

More like a historical tale, I would have thought.