Can realtors lie about other offers?

Buying & Selling Real Estate
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Can realtors lie about other offers?

Ben Clark
Investor · Newark, NY · Member since 2016 · 19 posts · 41 votes

Hey everyone, 

I've bought 2 properties in my life so I know a lot of you guys have a lot more experience. Can a realtor lie about having another offer? There isn't much in my area listed for sale. Because I want to get more into investing I've been running the numbers on everything listed around me and felt like I needed to get out and see some of the properties near me. There is one property that has some problems as far as repairs needed, and is listed too high (in my opinion) that I'm going to see tomorrow morning. I know a number already that makes sense for me to offer at and won't go over that number. The property has been listed on the MLS for 267 days. My agent called the sellers agent today and asked to set up tomorrow to look through the property. The sellers agent said yes, but that they had gotten an offer today. I'm not saying the agent is for sure lying because obviously an offer could come in at any time. It does seem odd though that it's been on the market for that long and the day before I go to look at it another offer comes in. If I liked the property I planned on offering less than my best offer to start and see what happens I would assume the best course of action would be to stick to that and not let the agent saying that change my mind. Like I said I know the max offer I would put in and won't go over that. Just wondering what everyone thinks. Can agents lie about offers or is that a big no no.


Thanks!!!

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Brent Zande
Contractor · Cornelius, NC · Member since 2011 · 123 posts · 89 votes
6y

@Ben Clark

I would ask why it would even matter to you? When you place an offer it should always be what you dictate. Did they call for a highest and best? Stay clear and focused on your plan the rest is just noise.

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  • Account Closed
    Real Estate Agent · Powell, OH · Member since 2019 · 18 posts · 18 votes
    6y

    No, they can’t. Real estate agents are required to treat all clients AND customers with the fiduciary duty of honesty.  Even if the seller told him/her to say that, he/she should not.

    1Reply
  • David M.
    Morris County, NJ · Member since 2020 · 5k+ posts · 2k+ votes
    6y

    @Ben Clark

    Yeah it does sound fishy on the surface. But, you’d be surprised how the “market,” ie you, seem to get interested in one property at the same time. Happened to me a lot recently.

    Not sure what sort of property you are looking at. To expand on the prior post, the Realtor Code of Ethics requires honesty in all things. That being said, not all real estate agents are Realtors, ie members of the National Association of Realtors. Generally, residential agents are members. However I know in NJ most commercial agents are not members. Nothing requires them to be and commercial is different than residential, one major aspect being commercial is not regulated. All the consumer protections and regulations are for the residential side.

    Good luck.

    2Reply
  • Ali Artero
    Member since 2020 · 1 post · 4 votes
    6y

    @Ben Clark

    If youd like you can report them to the board and they’ll start an investigation and he’d have to show proof that he received an offer.

    Imo you should, agents that lie to get an advantage for their seller is against the law and the fact he got an offer the same day when it’s been up for almost a year is too much of a confidence. I’d bet he’s lying and has done this before to give his seller an edge.

    Really, the same day or so when it’s been up for that many days??? Jeez

    4Reply
  • Nick Rutkowski
    Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
    6y

    @Ben Clark

    Technically no, agents can’t lie to you but there are ways around that. It seems like the other agent is baiting you to hurry up and put in an offer. Typical mediocre technique agents use all the time to rush people into making a decision.

    Next time ask what the buyer has offered, the sellers agent has no fiduciary to the buyer so that information can be made public. Either the agent is lying or you have a competitor. It’s a good way to gut check agents.

    2Reply
  • Brit F.
    Rental Property Investor · DFW · Member since 2017 · 143 posts · 120 votes
    6y

    @Ben Clark, if the agent said it exactly like that, notice what words weren't included to describe the competing offer: solid, strong, or above asking, for example.  And, the agent didn't say the seller was likely to accept and that yours could be a backup offer.  If the offer is real, it may be very weak.  If the offer isn't real, you're not competing against anything.  

    Stick to your own strategy because that's all you can control - unless you find out the specifics from the potentially competing offer, which your agent can help with depending on how forthcoming the seller's agent wants to be.

    3Reply
  • Steve Morris
    Real Estate Broker · Portland, OR · Member since 2019 · 4k+ posts · 2k+ votes
    6y

    "If I liked the property I planned on offering less than my best offer to start and see what happens I would assume the best course of action would be to stick to that and not let the agent saying that change my mind. Like I said I know the max offer I would put in and won't go over that. Just wondering what everyone thinks."

    I think that is the best strategy. If you have a walk-away number stick to it.  The listing broker should be aware real quick and not play jerk-around games if that's their intent.  Now if you start missing out on deals,  you may need to reassess your calculations to get your walk-away.

    Am a broker and brokers in almost any place are supposed to be open (within what a seller legally allows) and honest to all parties?  Yes.  Do some lie?  Yes.

    I wish it was otherwise, but at least in OR, it's tough to make a case to the REA besides something obvious like theft of funds.

    2Reply
  • Brent Zande
    Contractor · Cornelius, NC · Member since 2011 · 123 posts · 89 votes
    6y

    @Ben Clark

    I would ask why it would even matter to you? When you place an offer it should always be what you dictate. Did they call for a highest and best? Stay clear and focused on your plan the rest is just noise.

    5Reply
  • Account Closed
    Real Estate Agent · Powell, OH · Member since 2019 · 18 posts · 18 votes
    6y

    @Nick Rutkowski Agents actually do have a fiduciary duty to all persons they deal with; they just have more duties with those they have a legal agency relationship with.  All agents are required to follow the duties of reasonable care, obedience (within the law), loyalty, disclosure and confidentiality with their clients that they have a agency relationship with.  However, they are also still required to follow the duties of honesty, reasonable care and material disclosure (specific to a transaction) with all persons they work with.  That disclosure does not extend to revealing the presence or absence of competing offers and/or the amount of those offers, unless the seller gives permission to reveal that information.  Could the agent be lying?  Sure.  Like others have said, it would be difficult to prove it and probably not worth the time.  Just because a property has been on the market for 200+ days doesn't mean the seller hasn't received offers; maybe he/she is just sticking to a certain price and not compromising (or being unrealistic).

    2Reply
  • Russell BrazilBusiness Member
    Moderator
    Real Estate Agent · Washington, D.C. · Member since 2012 · 17k+ posts · 30k+ votes
    6y

    Everyone always thinks it sounds fishy....then everyone gets pissed when they inevitably sell that property to someone else. 

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  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    6y

    @Ben Clark there are times when it seems like a lie and it isn't at all and then there are times when agents are outright lying. I had it happen to clients of mine and we ended up filing an ethics complaint against the agent after giving them a million ways to avoid it. They had other violations, including not disclosing that the agent was also the owner. At the hearing, it came out that they did not have other offers at all and we had text messages clearly showing that both the agent and her broker said there were other offers. They were caught in so many lies at the hearing it was almost unbearable to watch. The agent ended up being found guilty of four separate counts and received three separate reprimands and punishments.

    Long story short, don't jump to conclusions, but also make sure there is accountability. On-market real estate is just as murky as off-market, but sometimes it is the buyer's agents who are misreading the situation. Asking pointed questions and getting documented answers via text is how to do it.

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  • Tushar P.
    Member since 2019 · 332 posts · 171 votes
    6y

    If the agent is lying then it should be a good situation for you - you can force them to sell at much lower price or they face consequences for lying. You should be willing to walk away while you try to find out if they lied or not.

    Not sure what the consequences could be though. Reprimands, really? Maybe the agents and the board are like cops - they commit crime and also get away with it.

    0Reply
  • Roger Hefner
    Yuma, AZ · Member since 2015 · 140 posts · 137 votes
    6y

    @Ben Clark many lie not suppose to but they do just like any other used car sales men..just life but if you can catch one lying burn them to the ground.

    3Reply
  • Jeff S.
    Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    6y

    @Ben Clark If it isn't in writing it does not matter what is said. Saying there is another offer means nothing because it is all hearsay. If something is important than get it in writing. Sales is all about creating urgency. Saying there is another offer has nothing to do with the property and does not change it's value.

    1Reply
  • Gi'angelo Bautista
    Flipper/Rehabber · San Francisco, CA · Member since 2017 · 176 posts · 70 votes
    6y

    When I was in brokerage, I told my my mentor that I think that a top producing agent I was dealing with was lying about having another offer.  He laughed and then said,"Of course! We all do!"

    When I listen to my current broker's conversations with other agents in regards to offers, she always "stretches the truth".  

    Many agents lie.  We just have to learn how to deal with it. 

    3Reply
  • Joe S.Pro Member
    Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
    6y
    Originally posted by @Ali Artero:

    @Ben Clark

    If youd like you can report them to the board and they’ll start an investigation and he’d have to show proof that he received an offer.

    Imo you should, agents that lie to get an advantage for their seller is against the law and the fact he got an offer the same day when it’s been up for almost a year is too much of a confidence. I’d bet he’s lying and has done this before to give his seller an edge.

    Really, the same day or so when it’s been up for that many days??? Jeez

     I personally wouldn’t recommend reporting someone with no real justification other than suspicion.

    0Reply
  • Craig McLaughlin
    Rental Property Investor · Robins, IA · Member since 2015 · 45 posts · 18 votes
    6y

    @Ben Clark

    On my first rental property I put in my offer and then the seller said they had another offer come in the same day and for me to give best and final offer. It had been on the mls for about 90 days. I stayed put with original offer and got the house. The other offer could legally be $100 but “another offer” could just be a ploy to get higher offer from you.

    1Reply
  • Ben Clark
    OP
    Investor · Newark, NY · Member since 2016 · 19 posts · 41 votes
    6y

    Thanks for the replies everyone! 

    1 I don't plan on reporting the agent because i understand totally there could be another offer.


    2 It doesn't change what I'm going to try and get the property for, but I was curious if lying about offers is frowned upon but ok or if it is a serious no no to do that.

    3. I looked at the property today. The agent said let us have your best and final offer by the end of the day because that's how long they have to accept the other offer. I decided that because I didnt want to be rushed into my second deal I'm going to look at what it costs to do the work I would need to do. If this other offer is accepted great it makes the decision of, no not this property for me. If it's not accepted then I can put my offer in later if I decide to do so. 

    Thanks for all the responses you are all a great help!

    2Reply
  • Jeff S.
    Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
    6y

    Sounds like a good plan @Ben Clark.

    0Reply
  • Calvin Thomas
    Developer · New York City, NY · Member since 2015 · 812 posts · 718 votes
    6y
    Originally posted by @Account Closed:

    No, they can’t. Real estate agents are required to treat all clients AND customers with the fiduciary duty of honesty.  Even if the seller told him/her to say that, he/she should not.

     That's cute to believe this.

    3Reply
  • Jonathan R McLaughlin
    Rental Property Investor · Boston, Massachusetts (MA) · Member since 2016 · 2k+ posts · 2k+ votes
    6y

    Can we please stop using “fiduciary duty” incorrectly? People will get burned. The phrase means a requirement to act in the best interest of the client. Realtors do NOT have a fiduciary duty to the other party. They have a requirement to be honest within certain limits with the other party but that is NOT the same thing.

    2Reply
  • Joe Cassandra
    Rental Property Investor · Woodstock, GA · Member since 2017 · 517 posts · 772 votes
    6y

    I follow someone in the marketing arena who was just shopping for a house in CA (so we're talking a multi-million dollar house). 

    They were going back and forth, but the guy I followed wasn't getting the number he wanted. 

    His realtor texted (not the listing agent HIS agent):

    "So there’s another offer on the house. But I begged the seller’s agent to just send us a counter, and they did. They countered at $XXX. I think you should just accept it so we can get this house locked up."

    It was possible as it's a hot area of CA. 

    But he felt something was off, and told the agent he didn't believe there was another offer. 

    He voiced his concerns. Agent responded (again, HIS agent): 

    "Let’s start over. There is no second offer. But the seller’s agent did let me know that there’s another couple who will be looking at this house + a few others that are close by tomorrow. And if they like the house you have an offer in on, they could put in an offer too, and I’d rather avoid that because it creates multiple offers which is never fun."

    ---

    I.e. his own agent lied to get the deal done. 

    And looking back, I think my agent for my SFH (personal) did the same technique.

    I should've known as the house was on the market for like 6 months, and we had submitted a low offer they countered at. 

    She pulled the same technique "Oh, just accept their counter, there's another offer on the table." 

    Probably could've got our house for much cheaper. 

    (I never hired the agent again despite a few deals since...I think because my gut tells me she was lying about it...so she ultimately loses).

    ....

    Agents...desperate agents.

    0Reply
  • Sarah Latif
    New to Real Estate · Member since 2020 · 10 posts · 0 votes
    6y

    @Ben Clark

    I can’t tell you how many times brokers have tried to bait me. They probably think you won’t call their bluff. It seems every time a good property or business comes on the market they say, oh there’s a lot of interest, Bette thirty up and make an offer.

    My mom had an agent who kept pressuring her to lower her price on her fully remodeled sfr. Needless to say we never worked with that agent again.

    0Reply
  • JD MartinBusiness Member
    Moderator
    Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
    6y

    😂😂😂  Can a bear scat in the woods? 

    Yes, it happens all the time. Proving it is not an easy matter. Generally, if you get the "highest and best" return, it means there's either a real second offer, but it's still not what they want to get, or it doesn't exist at all and they're just trying to get you to come up to a number that is better for them or gives them room to try to negotiate with you without being miles apart. This is assuming that the property isn't priced way under market value to try to create a bidding war. Think of it this way: if there is a second, or third offer that is the money the seller wants, and the buyer is qualified, why would they take a chance on alienating that buyer to contend with several other lower-priced buyers? If I want $100k for a house, and I get 2 offers, one for $100k and another for $95k, unless I think I can significantly expand my upside for minimal downside risk, it would be foolish to reject and say "best and highest". The 100k buyer may walk and the 95k buyer may stay put, or come up to 97k, or maybe even 100k. So I've accomplished nothing and lost a buyer in the process. Now if I thought I could turn that 100k offer into 120k, then 20k of upside at the risk of 0-5k downside might be worth the gamble. Depends on the market, the house, everything. 

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  • William C.
    Real Estate Agent · Souderton, PA · Member since 2016 · 591 posts · 414 votes
    6y

    Interested to see how this plays out.  Also, you need to be very careful of the exact language the Agent uses.  For example when I am asked if we have any offers, and we do not, I let them know how many I am "expecting", sometimes within the next few hours.

    Every time I said 'That agent is lying, there is no way they got an offer after this long on the market"  It's sold to someone else...

    If they are lying, it will become obvious when it's still available in 24 hours.  That's when you make them pay with an even lower offer.

    0Reply
  • Matt Greer
    Real Estate Agent · Mesa, AZ · Member since 2017 · 231 posts · 169 votes
    3y

    No agents can't lie. Their client can tell them to disclose the presence offers or not to disclose them, but they can't lie. 

    It is fishy that this happened and there instances where it is a fabrication. When this happens to me I typically carry on and make my offer the way I planned to anyway. Don't play their game. Know your numbers and stick to them. 

    0Reply
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