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tenoverwater
Posts: 6
Registered: ‎08-08-2008
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Are realtors allowed to lie?

Specifically, can a listing agent tell a buyer's agent that there are multiple offers on a property, when in fact there aren't? Of course, I understand that anyone can lie at anytime, and I imagine there are agents that do lie, but I am wondering if there are any laws that are intended to address this.

 

If a buyer wanted to (or the buyer's agent), do they have the ability to require the seller's agent to show proof that there are multiple offers? 

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BobPhillips-RE
Posts: 1,701
Registered: ‎12-13-2010
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Re: Are realtors allowed to lie?

A buyer OR their agent COULD ask the listing agent such a question, but in a STRONG seller's market like today's it might not be prudent.  The simple fact is, for the majority of properties coming onto the market, ESPECIALLY any priced under $700k, there are probably going to be multiple buyers making offers.

 

You COULD make offers quickly, as soon as properties hit the market, but, even then, you wouldn't be the only buyer using such a tactic - especially after losing out on numerous previous houses.

 

To counter-act such strategies, a prudent ( Or greedy.) listing agent will probably take a few steps to s l o w down the incoming buyers, with a few tactics of their own, such as not getting back to the buyer's agent for a day or two, or claiming that their client - the seller - is out of town, or something like that, in the hopes of either A.)  Getting more offers to choose from, driving up the price, or B.)  latching onto a buyer of their own, where they are in the Kingpin position to use all the other offers to help construct the best one for THEIR buyer, thereby ensuring a double commission.

 

Back to the original question, instead of speculating whether the listing agent might be lying, you might make sure YOUR offer, is the one that is chosen, by making it as strong - or irresistible - as you can.  If you have less than 20% down, or Heaven forbid, some sort of contingency, chances are pretty good that you'll be either outbid, price-wise, or out qualified by a buyer with stronger capabilities, such as offering all cash - more than 20% of sales - or, at the very least zero contingencies.

All this, of course, is merely MY opinion. Thanks for reading.

Bob Phillips - Realty ONE Group - South Orange County, CA
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sheriff
Posts: 2,343
Registered: ‎06-01-2012
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Re: Are realtors allowed to lie?


tenoverwater wrote:

Specifically, can a listing agent tell a buyer's agent that there are multiple offers on a property, when in fact there aren't? Of course, I understand that anyone can lie at anytime, and I imagine there are agents that do lie, but I am wondering if there are any laws that are intended to address this.

 

If a buyer wanted to (or the buyer's agent), do they have the ability to require the seller's agent to show proof that there are multiple offers? 


They can and do lie.  It has happened to me multiple times.  The problem is they do not divulge specific information about offers so it is difficult to prove, but they do it OFTEN.

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missanh
Posts: 3
Registered: ‎12-12-2012
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Re: Are realtors allowed to lie?

This is what happening to me.  I am not a realtor. My home is listed for sale by owner thru a broker.  So i pay a commission fee of 2.5% to the buyer agent.  I get multiple offers on my home above my asking price.  They fall in love with the house but as soon as i accept the offer they back off so i have to restart showing my home again.  Now that i am selling my own home i can relate to the real estate agents out there and i feel sorry for them. Buyers go thru buyers remorse and back out all the time. So no i dont lie.  I tell people i have multiple offers already and stop showing my home but then the buyers change their minds so fast.  my house is listed for 7 days and i got at least 8 offers already.  This market is tough on the sellers too

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fourpheb
Posts: 95
Registered: ‎12-21-2012

Re: Are realtors allowed to lie?

tenover - There are laws against lying in any transaction; fraud.  There is an ethics code for "realtors".  And some agents lie a lot and get away with it.

 

Personally, I could care less about multiple offers.  The only offer I care about is mine, and what the property is worth to me.  I would never get into a bidding war with other buyers, or try to make my offer "competitive".  That is a sure sign that I am making an offer based on emotion rather than financial prudence.  I make an offer based on what a property is worth to me.

 

That is one of the many reasons I don't use a buyer's agent.  I could care less what their opinion of a "good" offer may be, and I really don't care to listen to the motivated by commission claptrap.

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sheriff
Posts: 2,343
Registered: ‎06-01-2012
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Re: Are realtors allowed to lie?


fourpheb wrote:

tenover - There are laws against lying in any transaction; fraud.  There is an ethics code for "realtors".  And some agents lie a lot and get away with it.

 

Personally, I could care less about multiple offers.  The only offer I care about is mine, and what the property is worth to me.  I would never get into a bidding war with other buyers, or try to make my offer "competitive".  That is a sure sign that I am making an offer based on emotion rather than financial prudence.  I make an offer based on what a property is worth to me.

 

That is one of the many reasons I don't use a buyer's agent.  I could care less what their opinion of a "good" offer may be, and I really don't care to listen to the motivated by commission claptrap.


That was a good post, but the only problem is if you don't use a buyer's agent you won't get a response from many seller's agents because they assume you are not serious about buying.

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fourpheb
Posts: 95
Registered: ‎12-21-2012
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Re: Are realtors allowed to lie?

[ Edited ]

sheriff wrote:

fourpheb wrote:

tenover - There are laws against lying in any transaction; fraud.  There is an ethics code for "realtors".  And some agents lie a lot and get away with it.

 

Personally, I could care less about multiple offers.  The only offer I care about is mine, and what the property is worth to me.  I would never get into a bidding war with other buyers, or try to make my offer "competitive".  That is a sure sign that I am making an offer based on emotion rather than financial prudence.  I make an offer based on what a property is worth to me.

 

That is one of the many reasons I don't use a buyer's agent.  I could care less what their opinion of a "good" offer may be, and I really don't care to listen to the motivated by commission claptrap.


That was a good post, but the only problem is if you don't use a buyer's agent you won't get a response from many seller's agents because they assume you are not serious about buying.


When your say, "if you don't use a buyer's agent you won't get a response from many seller's agents because they assume you are not serious about buying", YOU are using second person phrasing refering to ME, so your statement is unqualifyably untrue.  I have no problem getting a response from a seller's agent, and if I did, I would go straight to the seller.  There is no law saying that I have to deal with a real estate agent to buy a house.  The listing contract is between the seller and the agent, not me.  What do you think would happen if I contact the seller and tell them that their agent will not return my calls?  The fact that I do not have an agent just means there is more room for negotiation and the seller will have a greater probablitiy of receiving a larger net  with less agents involved.

 

And it seems to me that firing an agent for non-responsiveness is both reasonable and prudent, so there would be no commission to be paid and an even better chance for successful negotiation.  If I was a seller, I would be very interested in any potential buyer who does not have an agent and to whom my agent was ignoring.

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irvinehomeowner
Posts: 67
Registered: ‎11-16-2010
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Re: Are realtors allowed to lie?

@fourpheb:

 

So how many homes have you bought without an agent?

3CWG
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fourpheb
Posts: 95
Registered: ‎12-21-2012
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Re: Are realtors allowed to lie?

[ Edited ]

Personally, 4.   

Total in my family, 6.

 

I have never purchased a home with an agent representing me before the offer was made.  When making the offer, the listing agent has always told me that I can't complete the transaction through them until I sign a dual agency contract, but at no time have I ever kidded myself that the listing agent was representing my interests.

 

I just realized, why should have to sign a dual agent agreement to buy property?  I do not have to make an offer through the agent, so why don't I just make my offer directly to the seller? 

 

I am glad the listing agent was involved in the present home we purchased, maybe if only because he was a nice guy and the short sellers were flaky as heck.

 

First home I bought, the agent was ok, but probably unneccessary.

Second home, the agent was a flake and a liar and the seller and I both would have been better without him.

Third home, the agent was the seller's sister and was probably unneccessary.

And like I said, with this purchase I am glad the agent was there to smooth things out with the sellers.  They were quite stressed, had used the default system to it's fullest, and were still trying to squeak out more.