Do estate agents make up gazumping offers to get you to increase prices after accepted offer

DullGreyGuy

RHemmings said:

DullGreyGuy said:

silvercar said:

Some EAs would do this. The old adage was, "how do you know an estate agent is lying? Their lips move."

The joke was typically applied to anyone who has "agent" in their job title. 

Was surprised several years ago watching some silly daytime tv programme about auctions and it talked about the auctioneer "taking a bid off the wall", ie they claimed there had been a higher bid which hadn't actually been made with the aim of driving up the price just in this case the auctioneer had got unstuck as no one outbid the wall. 

The above is allegedly legal practice so a little surprised that estate agents are strictly forbidden from playing similar tricks. Obviously nothing to stop the vendor for lining up a friend to pose as an alternative buyer and submitting a gazumping offer

I believe that in some cases 'taking a bid off the wall' is used when there is a reserve price. So, the bid is from the reserve price, not a person. This then should stop once the reserve is achieved. 

In the TV show the off the wall bid was above the reserve, can't remember how much above, because the seller was confused when the reserve was exceeded but the auctioneer declared it withdrawn at the end of the bidding. Im well aware this is tv so may be all fake and it could be just they way they increment bids that the next one following a real persons bid moved it above but would have thought the last bid to get it to the reserve off the wall would be immediately under or at the reserve rather than above. 

TheJP

Ybe said:

eddddy said:

The estate agent would be breaking the law if they 'invented' other offers. (But maybe some estate agents would consider breaking the law.)

BUT... why would an estate agent want to do what you describe?

• Typically, selling a £300k property might get them £3k in commission

• 'Tricking' you into paying an extra £5k would get them an extra £50

Why would they waste their time; risk prosecution; and risk you getting angry and walking away and losing £3k commission - for the sake of £50?


In general, estate agents don't like gazumping. It causes them extra work and it delays the sale (so delays them getting their fee).

True. So in these sorts of situations it’s more likely the vendor messing everyone around? If they decide to entertain the higher offer and/or ask the buyer to increase their offer? And also delay taking the property off the market/issuing memorandum of sale

Not sure i see it as messing around, if a new offer £5k higher comes in then they know there is competitive interest in the property. You might really like the property and increase it by £10k etc etc. Its a frustrating merry go round but someone will be willing to pay the higher price until they cant so the seller needs to play a safe game if they were to play.

ReadySteadyPop

TheJP said:

Ybe said:

eddddy said:

The estate agent would be breaking the law if they 'invented' other offers. (But maybe some estate agents would consider breaking the law.)

BUT... why would an estate agent want to do what you describe?

• Typically, selling a £300k property might get them £3k in commission

• 'Tricking' you into paying an extra £5k would get them an extra £50

Why would they waste their time; risk prosecution; and risk you getting angry and walking away and losing £3k commission - for the sake of £50?


In general, estate agents don't like gazumping. It causes them extra work and it delays the sale (so delays them getting their fee).

True. So in these sorts of situations it’s more likely the vendor messing everyone around? If they decide to entertain the higher offer and/or ask the buyer to increase their offer? And also delay taking the property off the market/issuing memorandum of sale

Not sure i see it as messing around, if a new offer £5k higher comes in then they know there is competitive interest in the property. You might really like the property and increase it by £10k etc etc. Its a frustrating merry go round but someone will be willing to pay the higher price until they cant so the seller needs to play a safe game if they were to play.

Very unlikely this game happens much in today`s market.

newsgroupmonkey_

ReadySteadyPop said:

TheJP said:

Ybe said:

eddddy said:

The estate agent would be breaking the law if they 'invented' other offers. (But maybe some estate agents would consider breaking the law.)

BUT... why would an estate agent want to do what you describe?

• Typically, selling a £300k property might get them £3k in commission

• 'Tricking' you into paying an extra £5k would get them an extra £50

Why would they waste their time; risk prosecution; and risk you getting angry and walking away and losing £3k commission - for the sake of £50?


In general, estate agents don't like gazumping. It causes them extra work and it delays the sale (so delays them getting their fee).

True. So in these sorts of situations it’s more likely the vendor messing everyone around? If they decide to entertain the higher offer and/or ask the buyer to increase their offer? And also delay taking the property off the market/issuing memorandum of sale

Not sure i see it as messing around, if a new offer £5k higher comes in then they know there is competitive interest in the property. You might really like the property and increase it by £10k etc etc. Its a frustrating merry go round but someone will be willing to pay the higher price until they cant so the seller needs to play a safe game if they were to play.

Very unlikely this game happens much in today`s market.

Sadly, this is the case
https://www.mfsuk.com/blog/what-is-gazumping/

It's very, very common and is increasing (see their links)

DE_612183

newsgroupmonkey_ said:

ReadySteadyPop said:

TheJP said:

Ybe said:

eddddy said:

The estate agent would be breaking the law if they 'invented' other offers. (But maybe some estate agents would consider breaking the law.)

BUT... why would an estate agent want to do what you describe?

• Typically, selling a £300k property might get them £3k in commission

• 'Tricking' you into paying an extra £5k would get them an extra £50

Why would they waste their time; risk prosecution; and risk you getting angry and walking away and losing £3k commission - for the sake of £50?


In general, estate agents don't like gazumping. It causes them extra work and it delays the sale (so delays them getting their fee).

True. So in these sorts of situations it’s more likely the vendor messing everyone around? If they decide to entertain the higher offer and/or ask the buyer to increase their offer? And also delay taking the property off the market/issuing memorandum of sale

Not sure i see it as messing around, if a new offer £5k higher comes in then they know there is competitive interest in the property. You might really like the property and increase it by £10k etc etc. Its a frustrating merry go round but someone will be willing to pay the higher price until they cant so the seller needs to play a safe game if they were to play.

Very unlikely this game happens much in today`s market.

Sadly, this is the case
https://www.mfsuk.com/blog/what-is-gazumping/

It's very, very common and is increasing (see their links)

A report that is 9 months old by a finance company that specialises in products that overcome gazumping...

newsgroupmonkey_

DE_612183 said:

newsgroupmonkey_ said:

ReadySteadyPop said:

TheJP said:

Ybe said:

eddddy said:

The estate agent would be breaking the law if they 'invented' other offers. (But maybe some estate agents would consider breaking the law.)

BUT... why would an estate agent want to do what you describe?

• Typically, selling a £300k property might get them £3k in commission

• 'Tricking' you into paying an extra £5k would get them an extra £50

Why would they waste their time; risk prosecution; and risk you getting angry and walking away and losing £3k commission - for the sake of £50?


In general, estate agents don't like gazumping. It causes them extra work and it delays the sale (so delays them getting their fee).

True. So in these sorts of situations it’s more likely the vendor messing everyone around? If they decide to entertain the higher offer and/or ask the buyer to increase their offer? And also delay taking the property off the market/issuing memorandum of sale

Not sure i see it as messing around, if a new offer £5k higher comes in then they know there is competitive interest in the property. You might really like the property and increase it by £10k etc etc. Its a frustrating merry go round but someone will be willing to pay the higher price until they cant so the seller needs to play a safe game if they were to play.

Very unlikely this game happens much in today`s market.

Sadly, this is the case
https://www.mfsuk.com/blog/what-is-gazumping/

It's very, very common and is increasing (see their links)

A report that is 9 months old by a finance company that specialises in products that overcome gazumping...

If you feel they're misrepresenting, unlike the USA, we have strict rules about making claims that are non-existent.
Off you go to Ofcom.

Frankly, I think they're probably full of it a bit, but Crashy is wrong in this case. It happens an awful lot.
It's probably more common now than it's ever been. 

ReadySteadyPop

DE_612183 said:

newsgroupmonkey_ said:

ReadySteadyPop said:

TheJP said:

Ybe said:

eddddy said:

The estate agent would be breaking the law if they 'invented' other offers. (But maybe some estate agents would consider breaking the law.)

BUT... why would an estate agent want to do what you describe?

• Typically, selling a £300k property might get them £3k in commission

• 'Tricking' you into paying an extra £5k would get them an extra £50

Why would they waste their time; risk prosecution; and risk you getting angry and walking away and losing £3k commission - for the sake of £50?


In general, estate agents don't like gazumping. It causes them extra work and it delays the sale (so delays them getting their fee).

True. So in these sorts of situations it’s more likely the vendor messing everyone around? If they decide to entertain the higher offer and/or ask the buyer to increase their offer? And also delay taking the property off the market/issuing memorandum of sale

Not sure i see it as messing around, if a new offer £5k higher comes in then they know there is competitive interest in the property. You might really like the property and increase it by £10k etc etc. Its a frustrating merry go round but someone will be willing to pay the higher price until they cant so the seller needs to play a safe game if they were to play.

Very unlikely this game happens much in today`s market.

Sadly, this is the case
https://www.mfsuk.com/blog/what-is-gazumping/

It's very, very common and is increasing (see their links)

A report that is 9 months old by a finance company that specialises in products that overcome gazumping...

Exactly, most people I talk to are delaying or cancelling house buying due to general inflation and increased monthly mortgage debt costs.

newsgroupmonkey_

ReadySteadyPop said:

DE_612183 said:

newsgroupmonkey_ said:

ReadySteadyPop said:

TheJP said:

Ybe said:

eddddy said:

The estate agent would be breaking the law if they 'invented' other offers. (But maybe some estate agents would consider breaking the law.)

BUT... why would an estate agent want to do what you describe?

• Typically, selling a £300k property might get them £3k in commission

• 'Tricking' you into paying an extra £5k would get them an extra £50

Why would they waste their time; risk prosecution; and risk you getting angry and walking away and losing £3k commission - for the sake of £50?


In general, estate agents don't like gazumping. It causes them extra work and it delays the sale (so delays them getting their fee).

True. So in these sorts of situations it’s more likely the vendor messing everyone around? If they decide to entertain the higher offer and/or ask the buyer to increase their offer? And also delay taking the property off the market/issuing memorandum of sale

Not sure i see it as messing around, if a new offer £5k higher comes in then they know there is competitive interest in the property. You might really like the property and increase it by £10k etc etc. Its a frustrating merry go round but someone will be willing to pay the higher price until they cant so the seller needs to play a safe game if they were to play.

Very unlikely this game happens much in today`s market.

Sadly, this is the case
https://www.mfsuk.com/blog/what-is-gazumping/

It's very, very common and is increasing (see their links)

A report that is 9 months old by a finance company that specialises in products that overcome gazumping...

Exactly, most people I talk to are delaying or cancelling house buying due to general inflation and increased monthly mortgage debt costs.

Let's be fair, you've always had these friends that are never buying.
You quote them, but they don't exist.

Hoenir

Ybe said:

I’m now being told the vendor hasn’t made a final decision yet and will make one today 

And have they? 

Sapindus

ReadySteadyPop said:

Exactly, most people I talk to are delaying or cancelling house buying due to general inflation and increased monthly mortgage debt costs.

Interesting bit of research - what is your sample size and how are they selected?