How to call BS on the listing agents "Multiple Offers"
I was recently searching for an investment property. I came across a very nice 3 family that was updated. The owner had listed with an agent and had no real offers for over 2 months. They had lowered the price by $40k. We immediately put in an offer. The selling agent immediately told us that there were "4 offers near asking" and to come with best and last. I immediately thought that this is highly unlikely since we saw the house one day after the price reduction and put our bid in immediately following. Since as most of you know, it is fairly tough to prove that a selling agent is lying. Since this agent owned his own agency, he also was the owner calling the shots with no large organization having oversight. I requested with my broker to see the house again. The first time we had seen the property the owner had been there and showed us the house (The selling agent was too lazy to show the property). I hoped this would be the case the second time around, and it was. My agent and I asked the owner if he had been shown our offer and if he was considering any other offers. Not only had he not been shown our offer, he was not aware of any other offers. So all unscrupulous agents you have been put on notice. It's not that hard to find out if you are lying. We could have easily also dropped by unannounced if clever agents are thinking that the buyers will never meet the sellers. Now unfortunately, since all communication was verbal there is not that much recourse to report this agent, but it did save me thousands of dollars in extra costs. In the end, we were outbid by another investor, but I was happy not to have to overbid on the property. I hate this classic ploy by listing agents to drive up prices for their clients and commissions for themselves. Unfortunately,with the exception of the buyer, all parties including both agents' economic incentives are to not report this deception. If you sense either agent is lying, feel free to use this method to call BS.