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My buyer's agent sent me an e-mail saying that there are "multiple offers" on a home that I put an offer on a few days ago.
Is this reality or is this BS? I've come to distrust real estate agents in general due to this shopping experience which has dragged on for a year now (I am picky, but I also feel like these games have always been afoot)
1.) How would he learn this information?
2.) Why tell me this? Is it to coax me into offering more so that the commission is higher?
3.) What role would the selling agent possibly have in this?
4.) Why tell ME as opposed to some of the other supposed buyers who are supposedly also making offers?...and all at the same time??
5.) There is no way of knowing what others have offered (right?), maybe I "lose" out on this one, but so what? There are other houses out there.
Do I have a right to be skeptical? I'd like some professional as well as some non-professional opinions please.
My buyer's agent sent me an e-mail saying that there are "multiple offers" on a home that I put an offer on a few days ago.
Is this reality or is this BS? (Who knows for sure. It could be a lie, it could be the turth. Do YOU trust your agent? Then believe him) I've come to distrust real estate agents in general due to this shopping experience which has dragged on for a year now (I am picky, but I also feel like these games have always been afoot) (You should always present your BEST offer up front. If it's not taken, then stay happy and move to the next house. There's ALWAYS a better one if you continue to look)
1.) How would he learn this information? (The listing and/or selling agent would tell him this)
2.) Why tell me this? Is it to coax me into offering more so that the commission is higher? (It's to give you a chance to UP your offer, if you so choose)
3.) What role would the selling agent possibly have in this? (Selling agent is working for the seller, and has a duty ONLY to the seller, to get the best offer he can)
4.) Why tell ME as opposed to some of the other supposed buyers who are supposedly also making offers?...and all at the same time?? (How do you KNOW the other buyers weren't also informed about other offers?)
5.) There is no way of knowing what others have offered (right?), (CORRECT, your agent can't divulge that info legally, even IF he actually knows what the offers are) maybe I "lose" out on this one, but so what? There are other houses out there.
Do I have a right to be skeptical? (YES, of course you do! However, you NEED to do some research, and find an agent that you can TRUST. Believe me, they ARE out there!) I'd like some professional as well as some non-professional opinions please.
My answers are in bold. I am not a RE professional, but my wife and I have a buyers broker we've made many deals with over 22 years, as buyers/rehabbers/resellers)
I TRUST my agent, out of many I have dealt with, she's the best of the bunch. There are plenty of shady RE agents, and you have to do your due diligence to find the right one for YOU.
It's very hard to leave emotions out of purchasing a house, especially if it's going to be your personal residence. You have to learn that you MUST NOT"mentally move into" any house that you are making an offer on, because there's too much possible heartbreak involved, and things like the above that you are feeling right now.
Good luck in the future, I hope you finally find and close on the house that is perfect for you.
> Why tell ME as opposed to some of the other supposed buyers
The seller may well have directed his agent to tell the other agents that there were multiple offers. After all, the seller want the highest price.
> Why tell me this? Is it to coax me into offering more so that the commission is higher?
You have expressed an interest in the house so presumably you want to buy it. Most buyers do not offer their top price immediately. Your agent is giving you the opportunity to adjust your bid. If you don't buy he gets nothing. He would probably be very happy with the commission associated with your first offer.
> maybe I "lose" out on this one, but so what? There are other houses out there.
Yup, that's your fallback.
Quite apart from ethics- an agent who would play games when there are not multiple offers is risking a very small increase in commission against possibly getting nothing.
Last edited by rational1; 03-22-2016 at 03:57 PM..
Reason: missing word
I agree with MikeBear's answers except for this: (and I assume it was an unintentional error is stating "buyer's agent."
5.) There is no way of knowing what others have offered (right?), maybe I "lose" out on this one, but so what? There are other houses out there.
If his agent is also not the seller's agent (dual agent) the buyer's agent would have a responsibility to tell the OP of the other offer amounts IF s/he knew them. It's unlikely the buyer's agent does not know the other offer amounts. It's not in the seller's interest for the seller's agent to disclose the amounts of the other offers.
5.) There is no way of knowing what others have offered (right?), (CORRECT, your agent can't divulge that info legally, even IF he actually knows what the offers are) maybe I "lose" out on this one, but so what? There are other houses out there.
That is incorrect. A Buyer's Agent can divulge that information if known. In fact, they would be failing to do their job if they didn't disclose it. The problem is that most Listing Agents will not divulge that information to a Buyer's Agent (nor should they). They may only do so on the rare occasion that the Seller wants that info to be shared.
My buyer's agent sent me an e-mail saying that there are "multiple offers" on a home that I put an offer on a few days ago.
Is this reality or is this BS? I've come to distrust real estate agents in general due to this shopping experience which has dragged on for a year now (I am picky, but I also feel like these games have always been afoot)
1.) How would he learn this information?
The listing agent typically informs all buyer agents that there are multiple offers and calls for highest and best offers by each buyer by a certain date and time.
Quote:
Originally Posted by InchingWest
2.) Why tell me this? Is it to coax me into offering more so that the commission is higher?
Most buyers offer lower than they are willing to pay initially expecting negotiations to happen. Your buyer agent is informing you in case you didn't offer your best offer initially. It is their job to inform you of facts that may impact your offer or purchase.
Quote:
Originally Posted by InchingWest
3.) What role would the selling agent possibly have in this?
The seller's agent (who is NOT the selling agent) is doing their job and information all potential buyers of offers so that they have the opportunity to come up in price, if they so choose. This will get their client, the seller, the best price, terms, and conditions to choose from.
Quote:
Originally Posted by InchingWest
4.) Why tell ME as opposed to some of the other supposed buyers who are supposedly also making offers?...and all at the same time??
The other buyer agents have all been informed as well. This is standard practice.
Quote:
Originally Posted by InchingWest
5.) There is no way of knowing what others have offered (right?), maybe I "lose" out on this one, but so what? There are other houses out there.
No, the point is to get buyers to bid blindly which will give the sellers the best terms. This is what happens in sellers markets. Whether or not there will be other homes depends on you, your taste, and your ability to get over what you seem to think are real estate games. It sounds like you might be in a sellers market where there isn't enough demand so they control negotiations.
Quote:
Originally Posted by InchingWest
Do I have a right to be skeptical? I'd like some professional as well as some non-professional opinions please.
You have the right to think or feel any way you want. Whether or not your thoughts are based on understanding market forces and the real estate process seems dubious.
My buyer's agent sent me an e-mail saying that there are "multiple offers" on a home that I put an offer on a few days ago.
Is this reality or is this BS? I've come to distrust real estate agents in general due to this shopping experience which has dragged on for a year now (I am picky, but I also feel like these games have always been afoot)
Could be a lie. But for little gain IMO.
1.) How would he learn this information?
He wouldn't. Unless the listing agent disclosed the amounts bid
2.) Why tell me this? Is it to coax me into offering more so that the commission is higher?
Sure. He wants the highest price possible. You want the lowest price possible. It's a game.
3.) What role would the selling agent possibly have in this?
None really. He simply tells you what the seller said through his representative
4.) Why tell ME as opposed to some of the other supposed buyers who are supposedly also making offers?...and all at the same time??
They tell everyone who bid. But you may be bidding against one or more people.
5.) There is no way of knowing what others have offered (right?), maybe I "lose" out on this one, but so what? There are other houses out there.
Yup. I bid the best offer I'm willing to pay. I don't play the bring me your highest and best offer.
Do I have a right to be skeptical? I'd like some professional as well as some non-professional opinions please.
Sure you can be skeptical. Do you trust your agent? If not you'll be going through this at every house you bid on. Let your rep do his job. He's not gonna lie to you. He has a fiduciary duty to you
If the market is hot and the listing is priced well, a multiple offer situation is more probable than not.
You don't describe the market, your offer compared to listing price, or the listing itself in your post.
Has this house sat on the market for months without showings or offers? Did the seller do a price adjustment that triggered new interest?
Did the house come on the market at a comparable price with many showings?
There are so many things to rule out before you jump to a fallacious judgment of the agent/seller.
I don't like games, either. I made an offer (full price, no sale contingency, underwritten pre-approval from lender) on a place that had 3-4 showings in 90 days and magically, 2 hours later, my agent called to inform me that the seller had another offer and asked if I wanted to submit a new, higher offer. I walked. I know that house did not sell for another 3-4 months--but no idea if the seller got their bidding action or their price.
But, in my current market, comparable-priced listings are lasting 2-7 days. Inventory is low. People are getting multiple offers in 7 days and are under contract.
Being picky and skeptical is not the same as having trust issues with RE folks. I am not a RE agent.
Why does this myth continue to survive? Would any agent, knowing the likelihood of a suspicious buyer walking away, risk losing the deal by making up a multiple offer situation? [see post above] Anyone who believes that agents make up multiple offers to earn a couple of extra bucks probably believes that Charlie Manson auditioned for the Monkees.
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