In my market, where multiple offers are almost guaranteed at certain price points, we present offers typically with a 4 to 12 hour window. Most of the time the seller's agent will abide by this, sometimes they'll call and ask for more time, but I go in with the goal of winning the bid for my client. I ALWAYS call the seller's agent ahead of time and try to ask them how can I win their grace and what their client's goals are, and what they're willing to take as an offer. The seller's agent will most likely have a convo with you to help you structure your offer. The I structure the offer that favors a quick response and I've already alerted them an offer is coming, then I give them 4 hours to decide. I hardly ever lose an offer to competing offers unless they're already on the table.
@Charlie MacPherson In many parts of the United States, offers from people associated with seller's agents are common. They are often used as back stops to set a price floor.
It is much more common than you think.
@Account Closed I'll consider myself educated - thank you.
I have literally never seen or heard of that around here. If that agent (or co-conspirator might be more like it) doesn't actually intend to follow through on the offer, that seems to violate the principle of fair dealing.
I'll reserve the right to be educated further, but that just seems unethical. Even the NAR Code of Ethics (and probably your state law) says you must deal honestly with all parties to a transaction.
In other words, even though I'm the seller's fiduciary, I cannot lie to get him a better deal. That would include fabricating an offer or causing a shill offer to be presented.
My other point stands though. If the other offer in the "multiples" was a lowball from the agency, just standing your ground - or even reducing your offer slightly - would have won you the deal.
I can assure you that type of thing does not happen for my clients. I have a real estate business here in Reno Nevada. It is our fiduciary responsibility to inform our clients the market value of their home. There are times when offers are provided before it goes live on the MLS. In this type of situation, it is the SELLER'S decision whether to wait to see what happens when it hits the MLS or whether to take the live offer at that time. I agree there are some unscrupulous individuals out there, however, without all the information, its difficult to have an opinion on this specific situation. Sometimes time & type of funding are more motivating factors for sellers. While most are out to net the most, each situation is different.
It's bad business if it's the agent's doing. Don't be completely shocked if the strategy is coming from the owner. I've seen it happen before and it is terrible for the listing agent when he/she is being manipulated by the genius seller.