Fake Multiple Bidders?

[coreground]

Do Sellers / Real Estate agents insinuate multiple bidders to get you raise your bid?

I've made three offers this summer and each time they've said there were other bidders.

The 1st one is still on the market today.. They accepted my then increased bid, but fell apart after inspection. The second appears to have actually been sold. The 3rd is saying there are "multiple offers and to submit the best and final by 4:30 today or asap" ... aka 24hrs after notice...

I have a friend who has a dozen or so rent houses and he swears that 9/10 its a ploy by the sellers. Comments ?

[Malok]

Are there times when there multiple bids? Of course.


My opinion:
Don't worry about the multiple bids. Submit what you are comfortable with in paying for the property - and if they reject, move on.


[And if it stays on the market - resubmit your same offer if you would like. Worse they can do is say no.]



A lot of investors get 1 out of 20 or 30 offers accepted.


Spend less time dwelling on what MIGHT be happening - and more time looking for the next deal. :)

[Codythebest]

Are there times when there are multiple bids? Of course.

And I know for a fact that some real estate agents produce verbally a 'fake' higher bid.
You may ask to see the first page of the other bid. They don't have to show it to you, but you may give it a try.
I lose a deal that way. I didn't know until I met the seller later telling him that $xxx,xxx is the highest I could do. He said: "$xxx,xxx ??? I never saw that !! I sold my property for $yyy,yyy (or $5,000 less)". The agent tried to get more, and finally, got less...

[Malok]

If you really feels thats the case - file a complaint and take them before the board of Realtors, or the Real Estate Commission.


Once you develop a reputation in the real estate community for not tolerating that type of behavior, the other scumbags are less likely to do the same.

[Mike Taylor]

I believe this happens as well, however it is usually pretty easy to uncover. I usually just tell them that my clients probably won't put an offer in if their is another offer on the table. If they start to backpedal and change the story you know they are not being fully honest.

[Kleimer Company]

I believe it is a common strategy of some real estate businesses of having multiple bids but its kind of bad for the customer. I agree with what others posted here. Be smart, outwit them and be not one of their victims. :D

[getofftheporch]

Mike Taylor, I loved your answer and think I will have a few of my agents try it. How often have you thought they were bluffing and found out they actually had multiple offers?

Brian

[Greg]

I believe this happens as well, however it is usually pretty easy to uncover. I usually just tell them that my clients probably won't put an offer in if their is another offer on the table. If they start to backpedal and change the story you know they are not being fully honest.

I agree. Always call their bluff and write your offer like you would if there were no other offers. Especially with the inventory on the market these days.

[jcboy460]

I totally agree with Malok. I am sure there are some shady agents and homeowners that make up multiple offers. But it actually does happen quite a bit, especially if you find a great property in a hot market. Just offer what you think the home is worth and if you don't get it move on to the next one. Remember to keep in mind that price is not the only factor sellers look at when accepting an offer.

[TomAnto]

We flipped a home that ended up with multiple offers. We just picked the offer we wanted & negotiated some simple terms like the closing date. They won because they seemed the most reasonable and easiest to close with. We didn't mess with the price, they came in at our asking price off the bat.

I don't think pressing for multiple bids on a home or driving the price up through a biding war is a good idea whether it is legit or not. It places too much stress on a deal that is already full of anxiety.

[PPP]

Unfortunately it's the kind of thing that gives agent's a bad name because there are always those out there who will put in fake bids to try and pressure someone into a sale.

I've only ever ended up in multiple bid situations when there are more agencies selling the same house, sometimes we've both got offers on the same day. I think it has to be up to client at the end of the day - how much will they pay and do they feel comfortable with it. If it's worth enough to them to go higher then great. If not, another house will (hopefully) be just around the corner for them.

[bwiley]

The bottom line is that when you buy a house you need to set the top price that you are willing to pay prior to making your offer. If you do this then you don't have to worry about fake multiple bidders because you won't go over your top price. houselistedfree.comDo Sellers / Real Estate agents insinuate multiple bidders to get you raise your bid?

I've made three offers this summer and each time they've said there were other bidders.

The 1st one is still on the market today.. They accepted my then increased bid, but fell apart after inspection. The second appears to have actually been sold. The 3rd is saying there are "multiple offers and to submit the best and final by 4:30 today or asap" ... aka 24hrs after notice...

I have a friend who has a dozen or so rent houses and he swears that 9/10 its a ploy by the sellers. Comments ?

[mercedes19]

I think bidding is just part of the business of selling , especially when it comes to high priced property.

I myself have used online auction sources in addition to my Real Estate Agent and have found it to be a great source as it allows me to bid for a property that is local at a price I am willing to pay.


Because of the positive experience I've had , I've started my own site for buyers to go online to one location and look up property by type or location and even provides a forum to share information and experiences.

Love,Kim