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We are under contract on a vacation/weekend property. Very unique place and we are excited.
We had it down to two contenders, very different places but both in markets that were a bit soft. In both instances, the realtors (different agents) had "another offer coming in." This was used to spur us into writing as it took a few weeks to make a decision between the two.
Neither of these other offers materialized and the house we decided against is still sitting on the market. I have heard this phantom offer thing before. How often is this used as a hurrying tactic for a fence sitting buyer and how often is it actually true?
There is another active thread in this forum discussing this very topic.
As seller's agent... when I've said it it has always been true. Of course, we don't know that incoming offers will be good offers until we see them.
I have, of course, as buyer's agent, often asked myself the same question, is it true or is this person BSing us? Still, if client wants the property, we have to assume it is true, and make our best offer.
Many times, buyer's agents jump the gun. I received a text on Friday that an agent was meeting with her buyers on Saturday to write an offer on one of my listings. Sunday came around, and I texted asking if I missed something. She said buyers were thinking and I would hear on Monday. It's now Tuesday, and I've heard nothing.
Listing agents don't purposely make stuff up to get offers from buyers who don't want to submit offers quickly. If I received a call asking if I had any offers, my response would be that I have nothing in hand, but I was told by an agent to expect something.
We are under contract on a vacation/weekend property. Very unique place and we are excited.
We had it down to two contenders, very different places but both in markets that were a bit soft. In both instances, the realtors (different agents) had "another offer coming in." This was used to spur us into writing as it took a few weeks to make a decision between the two.
Neither of these other offers materialized and the house we decided against is still sitting on the market. I have heard this phantom offer thing before. How often is this used as a hurrying tactic for a fence sitting buyer and how often is it actually true?
This tactic is used to create a sense of urgency to write an offer and in my experience, is widely used in residential real estate. It preys on the desire to not miss out on something.
One approach you might consider is to have a confederate submit an offer immediately after yours at a price that is below your offer. This reverses the situation and gives you leverage and control over the transaction by putting pressure on the seller to accept your offer.
One approach you might consider is to have a confederate submit an offer immediately after yours at a price that is below your offer. This reverses the situation and gives you leverage and control over the transaction by putting pressure on the seller to accept your offer.
Not only do I not see this working (I'm not sure I agree with your psychology)... I can't imagine an agent who would submit a 'fake' offer in the hopes of boosting the appeal of another one. I'm not in the mood to look it up... but I'm sure it would be expressly against both regulation and ethics.
Not only do I not see this working (I'm not sure I agree with your psychology)... I can't imagine an agent who would submit a 'fake' offer in the hopes of boosting the appeal of another one. I'm not in the mood to look it up... but I'm sure it would be expressly against both regulation and ethics.
I think you misunderstood. The second offer would not be a fake offer, but a real offer by a qualified confederate buyer using a different agent. It has been very effective in several of my transactions.
Not only do I not see this working (I'm not sure I agree with your psychology)... I can't imagine an agent who would submit a 'fake' offer in the hopes of boosting the appeal of another one. I'm not in the mood to look it up... but I'm sure it would be expressly against both regulation and ethics.
I think you misunderstood. The second offer would not be a fake offer, but a real offer by a qualified confederate buyer using a different agent. It has been very effective in several of my transactions.
Ok, I will be the dumb one here. What's a 'confederate buyer'?
Ok, I will be the dumb one here. What's a 'confederate buyer'?
Call me dumb too.
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