Bafflement from inexperienced newb: 'they've had a higher offer'/ 'oh really, please show me the evidence'

[KievLoverTwo]

I'm trying to get my head around just why people don't ask EA's for proof of higher offers and that sort of thing. It seems to be implied that you have to trust someone who is being paid to work for someone else.

If you go to a kitchen manufacturer and you want them to match a quote from someone else, they don't assume that cheaper quote is real, they ask for proof, you provide it, they match it.

So many businesses* seem to have price match guarantees.

What is it about the house purchasing process that makes folks sit back and just have to take the EA's word that they're not inventing higher bids?

Of course, we're British, so it's not polite to ask someone for proof that they're not fibbing, but I feel as though that doesn't quite seem to be enough.

So, what exactly is it about the house buying process that means EAs don't get held to account/truth checked by buyers? We all know they're legally obliged to put forward ALL offers, but we also know there are some very unscrupulous operators in the business who won't.

I don't have an offer in anywhere, I've got no skin in this game, it's just something that keeps rolling around in my head and I need answers, damn it!!

*I appreciate some won't consider this to be 'business', and others will

I don’t know if there is always a paper audit trail because the offer is usually made in person or over the telephone. They probably keep a note on file but it’s likely to be informal. I don’t know I’ve never worked in an EA.

Because at that point you haven't entered into any legal agreement with the seller, so you have no standing to be given any financial disclosure. You simply have no right to demand they disclose anything to you, any more so than the average person in the street.

It's not an open bid system like an auction.

HTH

What kind of proof do you expect them to be able to show you?

It could be a risky game to say "there is a higher offer" if there isn't

EA says there is a higher offer and there isnt
you say right OK that was my top offer so I'm out... EA hasn't made a sale then And lost a potential buyer

EA says there is a higher offer and there is- well you decide if the house is worth paying more for or not it's your choice

Agree! Have had an EA do that to me and it seemed pretty obvious they were telling porkies. I congratulated them and told them I couldn't go any higher and to let me know if it all fell through. Funnily enough the house was still on the market at the end of the day..... and in the end we bought it about two months later, for a lower price 😂

I don't expect anything. I'm just curious to know why it doesn't happen.

It probably doesn’t happen because no such proof exists that they could share, at least not in a GDPR complaint way.

Why would it though? it's good for you, but not for the seller..The EA is there to represent the seller and get the best price. That is literally their job.

Your job is to educate yourself in the market and set your own limit based on what you can afford.

Not sure why you think they should be working for you and not for the person paying their fee?

If I remember correctly it is an offence under the Estate Agents Act of 1979 to misrepresent an offer, that is to invent an offer that doesn't actually exist or to suggest an offer is for a higher amount than it actually the case.

It's a pretty dangerous and silly game to play for an agent to play. And ultimately makes next to no difference to their commission payments, whilst running the risk of losing a genuine buyer.

I didn't say they should be working for me. It's meant to be a discussion so I can better understand.

What does HTH mean, please?

Hope That Helps (HTH)

Higher offer can mean anything from a legitimate higher offer from an interested party to a less legitimate higher offer from their granny or the cousin of someone who works in the back office.

You have no way of telling which, so don't try to bother. Just give them the price you are willing to pay and ignore all the nonsense. That will either be enough to get it, or it won't.

Sometimes you can bluff them and you can tell from the call. For example their call might be of the tone, "there's a higher offer end of story". It also might be of the tone "there's a higher offer what are you going to do about it".

Sometimes you can detect which.

@MaryQueenofSocks yes, it does, thanks!

@GasPanic it all seems so cloak and dagger!

Higher offer can mean anything from a legitimate higher offer from an interested party to a less legitimate higher offer from their granny or the cousin of someone who works in the back office

I think that might fall in to the 'misrepresenting an offer' category.

People will only pay for a property they can afford and what's it's worth....

If you don't want to pay more, just say were just going to stick with our original offer and please let me know if anything changes .

If they accept the higher offer then you will know they got a higher offer to someone in a relatively similar position to you.

They may come back and say yes yours is accepted as you might be in a better position.

It's called negotiation and you need to be good at it to buy a property you want to buy

There's nothing you could be shown that would give any semblance of legitimacy (eg, not faked) that wouldn't also fall foul of GDPR.

that wouldn't also fall foul of GDPR

Data protection?

That makes sense.

I have worked in 4 different estate agencies in 2 cities, selling properties from £40,000 to £4million. I have never witnessed anyone EVER pretending there's a higher offer. It doesn't make any sense. If there's no higher offer then they risk losing a sale if the "lower offer" buyer decides to walk away.

They can't show you proof of a higher offer because that invades the other party's privacy.

That also matches my experience.

Yes exactly, they couldn't give you names or email addresses of the other potential buyers so other than "there's been an offer of £X" there isn't much they could do.

Well that's your answer. Because offers are usually made verbally so unless all calls are recorded (and potentially visits to the office) there wouldn't be any proof available. No point asking for something that doesn't exist.

For our first house search , we made all offers by phone.

For our second, we offered by phone and followed up by email, because we had to prove access to funds. It would not have been appropriate for that email to be shared (or indeed, any email that identified any buyer to another)

Estate agents can't show you other people's personal emails and financial details OP.
Many conversations are also verbal.