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Original poster

estate agent lying about another buyer

30 replies

ChipmunksInAttic · 30/04/2019 20:29

hello,
we have been looking to buy a house for ages and last weekend viewed a beautiful house. it was pricey but we are so fed up with house hunting that we immediately put an offer on the asking price. the EA called and said even though we offered the asking price, there were other viewers on the same day and he has to give them opportunity to have a say. at the end of the day, he called to say there is another buyer offering slightly higher than the asking price, they are also first time buyers like us, so he asked if we’re going to increase. we made a 5k increase, and the next day he called again, apparently the other party increased again. I had a disgusting feeling and felt being lied to, so did not make another bid. I said we can’t go any higher.

Then he said as they are giving more, vendors will accept their offer 99%.(why not 100%?) Same day he called again, saying he asked the other buyers for proof of deposit and waiting on that. he said he’s going to let me know first if they can’t prove their finances.

Now, I have a feeling that he will call me tomorrow and will say they couldn’t prove their finances so we still have a chance. The question is, if that happens, can I decrease my offer, as I had increased the bid only because of that other bidders? It doesn’t make sense to me to pay more than the asking price where there are no more rivals, but would it be disrespectful to the vendors? what would you do?

OP posts:
Geneticsbunny · 30/04/2019 20:48

We were lied to. House went to sealed bids but we were the only bidders and so got it for a steal. I think they thought they would spook us into offering loads but it backfired.

wigglypiggly · 30/04/2019 20:52

I hate bidding wars. If you still want to go ahead I would stick to the original offer. An ea did this to me once, I knew it was rubbish because I later discovered the other party was someone I worked with and I never put an offer in but they told him I had.

wigglypiggly · 30/04/2019 20:55

I wouldn't worry about the vendor, there may not actually be another buyer, it leaves a nasty taste.

househunter2019 · 30/04/2019 21:10

We had this and have had to increase 25k...after the house was on the market with no offers for 7 months! It is hard to trust that other offers are real.

wigglypiggly · 30/04/2019 21:13

I wish gazumping wasn't allowed.

Skiptheskip · 30/04/2019 21:15

When the estate agents calls you - and they undoubtedly will - tell them that on reflection you are retracting your second offer, but your original lower offer still stands.

Tell them you’ll leave that on the table for now, but you’ve lined up another few houses to go and view this weekend.

wigglypiggly · 30/04/2019 21:17

Good plan Skip

Thinkinghappythoughts · 30/04/2019 21:18

Nothing useful to add, but wondering if this is not illegal? Can it be proved the the estate is lying?

househunter2019 · 30/04/2019 21:21

It could be the vendors...if they put someone up to making an offer...#shesayscynically

rslsys · 30/04/2019 21:34

Fortunately, it is easy to tell when an Estate Agent is lying - you can see their lips moving . . .

RippleEffects · 30/04/2019 21:51

I'd get in first before they contact you. Put an offer in writting, via email, retracting previous unsuccessful bids and make the offer 5% under asking price to leave on the table should the current sale not continue.

Reinforce your strong financial position and that you are continuing to view other properties so this offer is subject to you not securing another property.

Kummerspeck · 30/04/2019 22:34

Something similar happened to a friend of ours. The agent told them there was another offer of similar price, both first time buyers, and the vendor would accept whoever was able to get mortgage in place first. Coincidentally the agent could guarantee their in-house broker could arrange this for a fee and our friends were so keen they went ahead.
After moving to the house, they found from the vendor there was no other offer. Friend went back to the agent, told him they would instruct solicitor, write to head office and complain to ombudsman if they did not get refund of the fee within the week. They got it back the following day!

Original poster
ChipmunksInAttic · 01/05/2019 04:51

Thank you everyone and very good advice Skiptoskip, that is what I was thinking. We will see if they call me again...

OP posts:
Saltystraw · 01/05/2019 04:58

I agree with skiptheskip.. play them at their own game. You can always go higher later if you really want too.

MadSweeney · 01/05/2019 11:08

This happened to us 25 years ago. Our first home. We'd seen it and had the offer accepted. A week later a mysterious second buyer appeared and EA wanted us to increase. DH is a stubborn sort , told the EA we don't play games and withdrew our offer.
Funnily enough the house was still on the market when we moved in to our home 6 months later.

TiddleTaddleTat · 01/05/2019 11:44

Been in this situation a number of times, and unfortunately the other offers were real.
We ended up losing out on about 4 houses!
I think it reflects the local market - here it is very buoyant and houses of the type we are after are in great demand - most houses go well above asking price, sealed bids etc.
So I would look at your finances, compare with recently sold prices, and stick with the offer you are happiest with. How would you feel if they were actually telling the truth and you then lost out?

Lovethetimeyouhave · 01/05/2019 11:49

Have they called OP?

Original poster
ChipmunksInAttic · 01/05/2019 12:06

They haven’t called and the property is marked as ‘under offer’ now in rightmove. So it seems they were not lying. :/ Don’t know what to think... I guess we wouldn’t increase the bid anyway...

OP posts:
Mildura · 01/05/2019 12:22

So it seems they were not lying

What was it that made you think the EA was lying? If the house was indeed beautiful, is it so implausible that someone else also liked it and wanted to put an offer in?

If you look at the financial aspect it is highly unlikely that an EA would completely invent another offer. It's not unheard of, but it's hardly commonplace.

Let's say the house is for sale for £300k. Typically EA fees are 1 - 1.25% of the sale price, so around £3000 - £3750. The individual negotiator might take 10% of that. So, for an additional £10,000 on the sale price the individual takes £12.50 (before tax). Is it really worth the bother?

magicstar1 · 01/05/2019 12:45

They can lie though. My parents put their house up for sale and had a viewing using an estate agent. The first person through the door put in an offer 20k over the asking price. There were another couple of viewings, then my parents told the ea to accept the offer. He went off and told the buyers that if they put another 2k onto their offer it was theirs! My mother went ballistic and told him he'd no right to do that and to accept the first price. Disgusting behaviour on his part.

Original poster
ChipmunksInAttic · 01/05/2019 12:57

Mildura,
It was only my gut feeling, but I also have reasons. Normally market is so slow where we live, properties prices are being reduces often, and I haven’t seen much properties selling at the asking price really. This was not an offers in excess only property. When we made our offer at the asking price, the EA said even if it is the asking price, he’s going to ask other viewers and I immediately thought oh he’s going to say there are other bidders. When he did so, I said ‘but we are first time buyers’, and he said so they are. Isn’t it a bit of an unlikely coincidence, that everything happens in one day, two first time buyers offering more than the asking price?

Apparently I was wrong, but I don’t think EA finds lying unworthy, as he makes his customer an extra 5-10k over the asking price, which will make them thankful and recommend them around... Don’t you think so?

OP posts:
collectingcpd · 01/05/2019 13:10

rslsys well said. We are selling/buying. House that didn’t sell over 9 months last year came back on the market, at a very slightly lower price. Nice house, but on a very steep hill/garden and needs a lot of work.we’d viewed it twice last year, so phoned EA and put on an offer £50k under asking price without another visit. EA phoned back a few hours later to say 1st viewing had put on an offer over the asking price. Obviously EA told buyers that they’d already had a ‘good’ offer and we really wanted the house.....all lies. The buyers have just been fleeced. I hate EAs.

Mildura · 01/05/2019 13:20

he makes his customer an extra 5-10k over the asking price, which will make them thankful and recommend them around... Don’t you think so

It is an illegal practice under the Estate Agents Act 1979 for starters.

Secondly it's a dangerous game to play. If by inventing a fictitious other buyer, the genuine buyer gets pissed off and either walks away or reduces their offer the customer is going to be less than happy.

Isn’t it a bit of an unlikely coincidence, that everything happens in one day, two first time buyers offering more than the asking price?

For an attractive property, sensibly priced that's just come on to the market, not especially no.

Fettfrett · 01/05/2019 13:51

@wigglypiggly accepting a higher offer at the bidding stage isn't gazumping. Gazumping is accepting an offer, letting the buyer get a significant way through the conveyancing process (i.e spending money) and then accepting an offer from someone else. If they haven't accepted your offer you can't be gazumped.

I think EAs generally play buyers off against each other, someone only has to be a bit interested and if they get told the house is going to go to someone else it spurs them on to make an offer so the EA can play them off against each other.

turning40 · 01/05/2019 14:08

I wish EA's would spend more time actually marketing properties and getting potential buyers through the door rather than playing mind games and encouraging unethical practices.