All Topics / Help Needed! / To what extent can agents lie about offers on a property?

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  • Profile photo of Jay SizzleJay Sizzle
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    Obviously suggesting that there are 'interested parties' for a property is common practice, and to be expected – but just how far can agents go with this deceit?

    Can they lie to prospective buyers by saying that an actual offer/offers HAVE been made, when nothing has actually occurred?

    Can they lie about the actual price of those offers, in an attempt to getaway prospective user to bid higher than they would have otherwise?

    Profile photo of Jay SizzleJay Sizzle
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    Also, are there any measures that buyers can take to gauge the reality of either claim?

    Profile photo of Jamie MooreJamie Moore
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    Hi Jay

    I'm not sure about the legalities in respect to the offer/negotiation process when purchasing real estate – but I'm pretty sure there's a rule in there somewhere that prohibits real estate agents from lying. Whether or not they all abide by the rule is a different story.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
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    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of Scott No MatesScott No Mates
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    An agent is required to present all offers to the owners, they don't however need to tell prospective buyers whether those offers are still under consideration by the owner ie if they have been rejected. So telling you that the owner has received offers is true (but not disclosing that they have been rejected is also OK).

    Profile photo of Jay SizzleJay Sizzle
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    Can you ask for the actual amount of the other offers – and if so, to what extent is the agent bound to tell the actual truth?

    Profile photo of Jacqui MiddletonJacqui Middleton
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    Good luck proving they have lied about an offer.  It'd be a messy business, word would get around town, and it would be hard for you to deal with agents in town afterwards.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Jay SizzleJay Sizzle
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    So…basically the only way of knowing that they have lied about an offer is if the promptly is still on the market in a few weeks time?

    Further to this, is there anything preventing them from taking the liberty of inflating the amount of any offers – real or otherwise?

    Profile photo of Richard TaylorRichard Taylor
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    I remember inspecting a property which had a great city view but in front of it was a property under construction.

    A very well respected agent in the are told me they were building a single storey property and certainly would not block my City view.

    Thankfully a little bit of DD proved she was wrong but someone end up buying it and when the new house was finished there was no City view at all.

    Sure misrepresentation but again try proving it.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Jacqui MiddletonJacqui Middleton
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    You just have to entertain the possibility that everything they say is a bit untruthful.  Ultimately, you have to think well I don't care what everyone else is up to.  I wish to pay no more than $x for this property.  If someone else wants to pay a bit more they are welcome to do so.  But I am not going to get all hurt and offended about being "beaten".  I am often saying "I am not disputing whether or not the property is worth what the vendor is asking.  However due to budget constraints, I am only able to offer $x.  However my buyer means business and will act immediately.  Here are the reasons we are strong buyers:  ………    Do you accept my offer?"

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Jay SizzleJay Sizzle
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    Good advice JacM, thanks.

    Profile photo of Scott No MatesScott No Mates
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    Jay, if the agent has received an offer then there is nothing stopping you from submitting one also. The agent must present all offers to the vendors (make yours in writing with a sunset clause).

    In the unlikely event ;) that the agent is lying, then they have your offer& conditions to present to the principal. They can always come back and ask you to increase the offer.

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