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

saajan_12

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).

Usually agree with this logic, but as an alternative scenario, if the vendor won't sell for less than £305k in your example, or if there's multiple agents and they are competing with another equivalent offer through another agent, then a pretend offer at £302.5 might encourage a buyer to beat it at £305k. That trickery could encourage an offer that's just high enough meaning the agent gets £3050 commission rather than £0. 

ReadySteadyPop

Sapindus said:

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?

It is general conversations with people since rates started going back to normal - Less take away, less meals out, less time at the pub, one big holiday a year instead of loads of trips here and there and mortgage debt monthly payments too expensive are common themes. Have a look at the Dominos share price today to see belt tightening across the debt addicted nations, or to see the drop in demand for UK property have a look at Plumplot sales numbers for 2024 compared to previous years.

newsgroupmonkey_

ReadySteadyPop said:

Sapindus said:

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?

It is general conversations with people since rates started going back to normal - Less take away, less meals out, less time at the pub, one big holiday a year instead of loads of trips here and there and mortgage debt monthly payments too expensive are common themes. Have a look at the Dominos share price today to see belt tightening across the debt addicted nations, or to see the drop in demand for UK property have a look at Plumplot sales numbers for 2024 compared to previous years.

None of which are people saying they're not buying houses that you claimed.

So let's put some facts on the table.
Apart from 2023, house prices have risen every single year since 2012.

They're still increasing year on year, despite you suggesting a house price crash has been imminent since 2003 (although there was a dip of about 5% back in 2009) - there is absolutely NO evidence to say otherwise.
If you want to compare sales numbers, 2024 was 17% higher in terms of residential house sales than 2023.
The number of house sales actually stays static since 2021.

OK, and data from the ONS also suggests that 2023 aside, expendable income continues to increase. Wages are going up higher than inflation at the moment.

Oh and McDonald's share price is up. As is KFC owners (who also own Pizza Hut). Although Burger King have dropped 1% over the year. Pizza Express have announced that their year-on-year profits are up too.

Hoenir

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.

While it's most. Some still are.  Every day properties return to the marketfor sale. That's purely the cycle of life.