I immediately thought that this is highly unlikely since we saw the house one day after the price reduction and put our bid in immediately following. You can withdraw your consent at any time. Combine that with audits from the real estate commission (with him being a broker he is audited more), and there is like a 95% chance he would get caught. Power of Attorney: Allowing One Person to Act on Behalf of Another, If you think you've been discriminated against, U.S. Department of Housing and Urban Development. @Joseph Chan , I am curious why you would want to try and catch the agent lying about multiple offers. $40k is real money but represents less than 6% of original sale price of $699k. An agent may stretch the truth or outright lie about these matters, so before selecting an agent, check the facts. Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! The best agents are great salespeople and the reason for this is simple. I hoped this would be the case the second time around, and it was. For these reasons there is just very little chance an agent lies about multiple offers. Sometimes that perfect buyer is just a little to perfect—and does not, in fact, exist. I just find it very hard to believe that there were 4 offers near asking one day (first Monday) after the price dropped (no offers in 2 months) , and that a week later the seller had not heard about one offer when I asked him directly. Closing costs are the expenses, beyond the property cost, that buyers and sellers incur to finalize a real estate transaction. THE PAYOFF: Double commission. Some might say it's a low number, but the property had sat for 2 months and the comps supported my bid. Power of attorney is a legal document giving a person broad or limited legal authority to make decisions about the principal's property, finances, or medical care. If you sense either agent is lying, feel free to use this method to call BS. He merely hadn't presented them to the seller yet. I just find it unlikely). Agents may also shift the responsibility of a listing accuracy by adding “BATVAI” (buyer’s agent to verify all information) or “IDRBNG” (information deemed reliable but not guaranteed) to listings. Mortgage lending discrimination is illegal. You then go on to say this whole thing saved you money, which is a good thing. Did another offer come in? Real estate agents may attempt to lure property owners to list their property with them by insisting that they have the perfect buyer for their property already lined up. That's another 28.8k a year in his pocket. The buyers were expecting a contract addendum that contained standard release of all contingencies stuff. What's funny is you think you caught the agent in a lie, yet clearly there was other offers since someone else won the bid. :P. @Wayne Brooks yes the selling agent did get a higher price but the question is that the true market clearing price? The seller is obviously going to act in their own self-interest, which may include a soft fib here or there to avoid an uncomfortable situation with you walking through their home. An agents job is to get the best price for their client and some agents lie all the time (Some are also very honest, so no disrespect intended). What's his chances of getting caught? I had friends who were buyers, who after negotiations had the perfect house for their needs under contract for $720k. To obtain a listing, a real estate agent may also falsely say they have a buyer lined up for the property. Your email address will not be published. A few days later I had the written revision lowering the price to $700k. I also asked if they wanted offers only on our standard GRAR contract? Now, do you think the sellers had the same opinion of me as my buyers did? You have 2 million agents in the US and you are telling me that zero have ever fudged numbers? @Russell Brazil I love how agents say they have zero incentive to cheat. good properties tend to draw multiple offers but also often times Agents get one contract that there clients don't want and then they use that offer to shop for additional offers. 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! Because it does not put my client in the best position. @Carolina E. You can always put an escalating clause where you will pay $X dollars higher than highest bid subject to a ceiling price. You think an agent is going to walk away from a guaranteed $17k commission for the slight possibility that he could get $19k. Put your brain to better use and let Nekst remember the details. Going through this right now. He wants to sell it quickly. I am just too busy today to get over there tonight". They were happy enough at $720k that they told me "if you do anything to make us lose this house, you'll have to leave the state". By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions. 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