{"id":3078,"date":"2022-07-17T05:47:29","date_gmt":"2022-07-17T05:47:29","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/do-real-estate-agents-lie-about-offers\/"},"modified":"2022-07-17T05:47:29","modified_gmt":"2022-07-17T05:47:29","slug":"do-real-estate-agents-lie-about-offers","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/do-real-estate-agents-lie-about-offers\/","title":{"rendered":"Do real estate agents lie about offers?"},"content":{"rendered":"

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Are real estate agents hon\u00adest, do they bend the truth or are they just try\u00ading to do the job without being sued?<\/strong><\/p>\n

Some\u00adtimes I won\u00adder why real estate agents have con\u00adsist\u00adently had a bad repu\u00adta\u00adtion over many years.<\/p>\n

In my exper\u00adi\u00adence of work\u00ading for dif\u00adfer\u00adent real estate agen\u00adcies I have come across the good the bad and the ugly.<\/p>\n

But I just want to put one thing out there.\u00a0\"property<\/p>\n

We are not just money hungry vul\u00adtures look\u00ading for our next vic\u00adtim to sink our claws into, this is what the media would like to per\u00adceive us as.<\/strong><\/p>\n

I am not against the media as they are just look\u00ading for that one story that gen\u00ader\u00adates the public\u2019s interest.<\/p>\n

For the most of us we are reg\u00adu\u00adlar people work\u00ading a job, doing our best to be the best, in a very com\u00adpet\u00adit\u00adive industry.<\/span><\/p>\n

It is nor\u00admally that one rogue real estate agent that quickly gets caught out by the ATO, or fair-trading because of the impossible to cover-up paper trail.<\/p>\n

I will admit most of us don\u2019t have degrees and haven\u2019t always been suc\u00adcess\u00adful.<\/span><\/strong><\/p>\n

We have failed at many things but what we do know is real estate and people.<\/p>\n

Some of the best real estate agents were never the best at school but found an avenue by which they could suc\u00adceed<\/p>\n

It is a heavily regulated industry<\/strong><\/span><\/h2>\n

The para\u00adnoia of the real estate industry \u201cplease don\u2019t sue us, we were only try\u00ading to help.\u201d<\/p>\n

To be quite hon\u00adest a lot of us are just try\u00ading to do our job, to the best of our abil\u00adity without being sued.\u00a0<\/p>\n

Today because of these rogue real estate agents, our industry is heav\u00adily reg\u00adu\u00adlated and we can be audited without a moment\u2019s notice.<\/strong><\/p>\n

In fact because of the new types of law\u00adyers out there will\u00ading to work on a \u201cno win no fee\u201d basis, real estate agents are even more para\u00adnoid about say\u00ading and doing the wrong thing by anyone.<\/p>\n

Real estate agents accord\u00ading to the law are in a pos\u00adi\u00adtion of a \u201chigh degree of trust\u201d (this is funny because we have been voted one of the most trus\u00adted pro\u00adfes\u00adsions).<\/p>\n

This is why when a real estate agent that commits a crim\u00adinal offence we are judged more harshly than the aver\u00adage per\u00adson, this is called a \u201cbreach of trust<\/strong>\u201d.<\/p>\n

The more breach of this trust the more of an impris\u00adon\u00adment for us real estate agents.<\/p>\n

Ignor\u00adance is not a defence for us and even if we have had no pre\u00advi\u00adous crim\u00adinal offences we will still be sen\u00adtenced harshly.<\/p>\n

The truth about real estate agents lying<\/span><\/h2>\n

When we attend our train\u00ading to become a real estate agent we are told about all the laws we can be pun\u00adished by and believe me there are a lot of them!<\/p>\n

So if a real estate agent delib\u00ader\u00adately or reck\u00adlessly lies for fin\u00adan\u00adcial gain they are play\u00ading a deadly game of cat and mouse with the author\u00adit\u00adies that will even\u00adtu\u00adally catch up with them.<\/p>\n

[note]Most agents just want to do the best job pos\u00adsible for buy\u00aders, sellers, land\u00adlords, and ten\u00adants.<\/strong>[\/note]<\/p>\n

They don\u2019t want to be sued just as much as the next sane per\u00adson.<\/p>\n

There\u00adfore with our extra trust the law has put on us, no real estate agent in their right mind ever wants to lie for fin\u00adan\u00adcial gain, this is the cold hard truth about our industry.<\/p>\n

Are agents allowed to lie about mul\u00adtiple offers?<\/span><\/h2>\n

This is a com\u00admon issue for buy\u00aders and I came across it myself when I bought my prop\u00aderty.<\/p>\n

I can under\u00adstand that angry and wor\u00adry\u00ading thoughts, try\u00ading to find out if the real estate agent is lying about this.\u00a0\"Couple<\/p>\n

On top of that, I do know of the heated dis\u00adcus\u00adsions that hap\u00adpen back at home, on whether you should make a higher offer<\/a> for that dream property.<\/p>\n

I do know of dodgy real estate agents that when des\u00adper\u00adate to sell a prop\u00aderty that they will lie about hav\u00ading other offers on the prop\u00aderty.<\/p>\n

Smarter agents would say \u201cwe have mul\u00adtiple inter\u00adested buy\u00aders\u201d which is not illegal to say.<\/p>\n

We are bound by a strict code of eth\u00adics and law that is taken very ser\u00adi\u00adously by Fair Trading.<\/strong><\/p>\n

If you feel as though you are being straight out lied to about other offers, I recom\u00admend you make a com\u00adplaint dir\u00adectly to the busi\u00adness owner (this may not be the dir\u00adector, you may find them under prin\u00adcipal).<\/p>\n

No prin\u00adciple of a real estate agency wants to lose their real estate licence, and this will quickly spur them into action because it is a ser\u00adi\u00adous alleg\u00ada\u00adtion to them.<\/p>\n

If the dis\u00adpute is not resolved after three attempts take your prob\u00adlem fur\u00adther up the food chain.<\/p>\n

8 little white lies real estate agents tell<\/span><\/h2>\n

As a property strategist I\u2019ve dealt with my fair share of real estate agents, and I’ve found most of them follow a very professional code of conduct<\/a>, however a few\u00a0agents can and do adopt certain ways of doing things and speaking with potential buyers to push a teetering sale across the line.<\/strong><\/p>\n

\"Fomo\"<\/p>\n

I\u2019ve heard pretty much all of it by now.<\/p>\n

And in today’s hot property market, many buyers are suffering from FOMO (fear of missing out) \u2013 being scared the market is running away from them.<\/p>\n

They feel they must get into the market making them more likely to be swayed by the persuasive arguments of selling agents.<\/p>\n

So to help you out when next negotiating a property purchase, here are 8 \u2018little white lies\u2019 real estate agents might tell you\u2026and what they really mean.<\/p>\n

1. We have another interested party\"Real<\/h3>\n

Essentially they\u2019re implying another buyer is waiting to pounce if you take too long to make your move, thereby playing on your fear of \u2018losing out\u2019 to \u2018the competition\u2019.<\/p>\n

This creates a sense of urgency and can be a very effective psychological play in tipping a hesitant purchaser across the line.<\/p>\n

While you shouldn\u2019t necessarily dismiss the possibility that someone else is nipping at your heels, never feel pressured into a purchase because you might not be the victor in what\u2019s possibly a fictitious battle.<\/p>\n

A good way to determine if the agent\u2019s story is legitimate is to ask questions like, \u2018Has a signed contract been presented to the vendor?\u2019<\/p>\n

Remember that in real estate, there\u2019s always another deal to be done so don\u2019t be afraid to walk away.<\/p>\n

2. We\u2019ve had an offer of\u2026<\/h3>\n

This is much the same as the above tactic, in that it can persuade a reluctant buyer to make an actual offer.<\/p>\n

But how do you know if you\u2019re being played?<\/p>\n

Once again, asking if the other offer is in the form of a signed, contract of sale can indicate whether any genuine bid has in fact been put forward.<\/p>\n

If the answer is \u201cno\u201d, then you\u2019re competing with a verbal proposal at best, or a downright fabrication at worst. Don\u2019t be backed into a corner.<\/p>\n

3. We haven\u2019t had as much interest as anticipated<\/h3>\n

Agents who love a good auction are renowned for this. <\/p>\n

They reel in potential bidders with guide prices that are often far from the realms of reality to begin with.<\/p>\n

Then net them with rhetoric about sluggish market interest, providing (often false) hope that you stand to secure a bargain come auction day.<\/p>\n

To avoid paying money on pest and building inspections when all you might end up with is the taste of bitter disappointment, do some research around the current market.<\/p>\n

Start by asking what reserve the vendor might set on the day. <\/strong><\/p>\n

You probably won\u2019t get an upfront figure from the selling agent, but you can measure his response against comparable sales.<\/p>\n

You could be really bold and ask what price they quoted on the listing authority.<\/p>\n

Having your own knowledge of the local market is a sure fire way to know when guide prices and reported buyer interest levels are in the realms of reality, or a clever ploy to increase competition at auction.<\/p>\n

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4. The vendor wants contracts signed up tonight\"Man<\/h3>\n

Really?<\/p>\n

I would think that if a vendor has more than one eager buyer throwing offers their way, they\u2019d be happy to wait a while and see how the competition plays out.<\/p>\n

If an agent is applying deadlines to negotiations in this manner, you can almost guarantee they either have a personal commitment they want to get to \u2013 like a golf game \u2013 or the vendor has made no such time stipulation.<\/p>\n

If you require more time to do your due diligence or arrange various inspections, don\u2019t be afraid to put an offer in writing with a conditional clause, making this requirement clear.<\/p>\n

5. The vendor hasn\u2019t really given us a good indication of their expectations yet<\/h3>\n

Any real estate agent worth the commission they\u2019re paid knows what their client wants, whether they\u2019ve stated it outright on a sales authority form, or in subtle undertones during an informal chat.<\/p>\n

If you\u2019re getting stonewalled on this point, perhaps change your approach slightly and question what type of limit you should set yourself on auction day, given the level of interest in the property.<\/p>\n

That way, the agent will be compelled to give you some type of figure, instead of dismissing your query with a little white lie.<\/p>\n

6. We\u2019re happy to present any offers prior to auction day\"auction<\/h3>\n

This strategy can say a lot about the circumstances surrounding the listed property, including a vendor who has a specific time-frame in which to offload their home for some reason.<\/p>\n

More often than not, agents will entice you into making pre-auction offers<\/a> to test buyer interest, thereby gaining a better insight into how much the market might pay and preparing the vendor to set their target reserve accordingly.<\/p>\n

More ruthless agents can use this information against unsuspecting emotional buyers in particular.<\/p>\n

If you make an overly generous offer for instance, they might use this to set a higher reserve, knowing the desperate bidder will compete to meet it and either pay more than they should at the fall of the hammer, or later during post-auction negotiations.<\/p>\n

7. You don\u2019t need a solicitor to look over the contract<\/h3>\n

Err, no!<\/p>\n

How does a real estate agent know whether the vendor\u2019s statement (in Victoria) is accurate, for a start?<\/p>\n

\u2018Buyer beware\u2019 definitely applies to the significant financial commitment you make when purchasing a property investment.<\/p>\n

It\u2019s essential that you have any contract ok\u2019d by your solicitor or conveyancer<\/a>, before it becomes unconditional and you\u2019re locked in.<\/p>\n

8. We don’t need to include that as a special clause, the vendors will be fine with it<\/h3>\n

While it\u2018s nice to think any special requests you want to attach to a contract of sale will be honoured on the basis of a verbal say-so, there are no guarantees without a signed, agreed and executed contract.\"legal2\"<\/p>\n

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\u00a0<\/p>\n

Remember, \u2018He told me so!\u201d is not a legitimate legal argument. <\/strong><\/p>\n<\/blockquote>\n

Neglecting to incorporate any and all requests into a legally binding, written agreement is just setting yourself up for a fall.<\/p>\n

How to call their bluff about another offer<\/span><\/h2>\n

Ultimately, the best way to protect yourself against the possibility of an agent extrapolating the truth to talk you into a less than desirable deal is to be prepared.<\/p>\n

Arm yourself with a good understanding of the market and importantly, recent comparable sales.<\/p>\n

If in doubt, consider using a buyer\u2019s agent<\/a> to help translate \u2018agent speak\u2019. \u00a0While it might cost you a little more at point of purchase, it could save you a lot in the long run.
Some people say to hold firm, don\u2019t look inter\u00adested, don\u2019t raise your offer and see what the agent does.<\/p>\n

Wait for a counter offer. \"Discussion<\/p>\n

Well what if that counter offer never comes and there really is a buyer?<\/strong><\/p>\n

This is how many people are gazumped.<\/p>\n

The other buyer offered more, you lose the home and get frus\u00adtrated at the agent.<\/p>\n

What is really hap\u00adpen\u00ading here, is the buyer has a lack of nego\u00adti\u00adation skills.<\/p>\n

Some people jus\u00adtify this by say\u00ading that there are other prop\u00ader\u00adties out there.<\/strong><\/p>\n

Well this may be true but it may take you another six months to find that dream home.<\/p>\n

A quick way to resolve this issue dur\u00ading nego\u00adti\u00adation is to purely say \u201care you sure there are mul\u00adtiple offers on this prop\u00aderty as it is illegal for you to lie to me about this\u201d this helps them either to cor\u00adrect them\u00adselves and offers them a way out (this is a great way to test the agent\u2019s nego\u00adti\u00adation skills), or they will hold their ground and feel a bit offen\u00added.<\/p>\n

This is exactly what happened to me and I found out there were mul\u00adtiple offers and it assisted me in secur\u00ading the prop\u00aderty against higher offers.<\/p>\n

Nego\u00adti\u00adat\u00ading with the seller dir\u00adectly good or bad?\u00a0\"deal<\/span><\/h2>\n

Does it cut out the lies?<\/p>\n

I have heard stor\u00adies about buy\u00aders that have made an offer and have been frus\u00adtrated over a mul\u00adtiple offers situ\u00adation.<\/p>\n

They have gone and door knocked the vendor\/seller try\u00ading get some straight answers.<\/p>\n

This usu\u00adally ends in more anger and stress for the buyer and seller.<\/p>\n

\u201cWhy\u201d you ask?<\/p>\n

Think about the situ\u00adation you could be walk\u00ading into;<\/strong><\/p>\n