“It was Sunday in the early evening when the call was made to the listing agent:
Buyer’s Realtor® – “We’d like to make an offer!”
Seller’s Realtor® – “Ok that’s great but, I need to tell you that three others who visited the weekend open house have also declared their intent to make an offer as well,” said the listing agent.
Buyer’s Realtor® – “Oh – well then, I will inform the buyers I’m representing to advise them that you expect multiple offers – I’ll get back to you with their decision.”
Later Sunday Evening:
Buyer’s Realtor® – “The buyers I’m representing have decided that they do not want to participate in a multiple offer situation.” “Thanks for your time and good luck with your multiples.”
Monday Morning:
Seller’s Realtor® phones. “Would your buyer’s reconsider their decision?”
Buyer’s Realtor® – “Why?”
Seller’s Realtor® somewhat embarrassed – “the other three offers that were declared Sunday evening have decided not to go forward.”
- Local Realtor Larry Yatkowsky recounts a story he heard over coffee with his Realtor buddy, at yattermatters.com 23 Jan 2012.
Inventory is rising rapidly this year, and has yet to be met by convincing sales.
This next month or two could be where the bust declares itself.
Remember, it’s not about buyers vs sellers; it’s about sellers vs sellers.
- vreaa
Sellers vs sellers, buyers vs buyers, buyers vs sellers, it’s a circus normalis, all for our vulgar cravings.
In other words, there never were any other offers. The selling agent was just engaging in the usual shennanigans in hopes of triggering a hasty panic offer. And the prospective buyers (or their agent) called the agent’s bluff.
Still, this is a good sign. The tactics that worked so well until recently are suddenly not working anymore, and in fact blowing up in the agents’ faces.
Bingo – after my second life-time house purchase I finally figured out that the multiple offer is usually complete bull. I believe my own realtor would use this to increase her commissions. On my third transaction I called her bluff and jumped on a plane. Sure enough, Monday morning I was suprisingly the only offer because the other party came down with pneumonia or some such garbage. Knowing this can save you 10% based on my experience.
I think part of what has just made me ill this past decade with the RE industry is shenanigans such as this, where lying is a normal part of how they do business. I don’t know how these people live with themselves honestly.
Exactly. One of the most unpleasant aspects of looking to buy RE is dealing with Realtors.
I think they live very well with the big commission check. In fact, I think they probably dream about even more effective ways to extract more money from both buyers and sellers.
I guess it depends on your definition of living well. I don’t equate having wealth or money with a life well-lived. Being a liar or a predator, enriching yourself at the expense of others, isn’t generally a desirable character trait. Most people don’t like, respect, trust or befriend such people knowingly and the truth always comes out, sooner or later.
At least there will be a lot fewer of them in a couple years, and the least professional will wash out first.
Yes, and we can add all the incompetent, predatorial contractors and tradesmen to the refuse heap as well. I should clarify here that I am not lumping all contractors and trades people into the same boat. Of course there are some excellent and honest ones. But this boom has brought out far too many of the other kind, and I’m looking forward to seeing thosecrawl back under the rock from hence they came.
Can we please stop calling them realtors and call ‘em what they really are…used home salespeople? Brings up a certain image in your mind doesn’t it.
Polyester suit and cheesy smile? Hey I know! Bring back those orange REMAX blazers!!
I regularly read Larrys Blog. Reggie is a complete idiot on there drinking massive kool aid. Even Larry a realtor, is becoming bearish.
Not so on Realestatetalks, the market is hot hot hot right now, apparently. There are fancy plans for the Year of the Dragon.
I’d like to see charges laid in cases of attempted fraud such as this. It will never happen though as it would ‘shake confidence’ in Canada’s real estate market.
I remember a discussion last year with some of my home-equity junkie co-workers. One was detailing how her sister had to move quickly to secure her bid for the house she had recently bought, otherwise she’d have ‘lost out’ as there were multiple bids (apparently).
The same conversation also detailed how her sister’s basement became flooded the day prior due to a cracked foundation after torrential rains. I asked, “Did she not get a home inspection as a condition of sale?” My co-workers looked at me as though I was from another planet and said, “But you’ll never get the house if you do that!” My response was, “Then don’t buy it, I wouldn’t buy a car without a test drive or mechanics inspection.”
A twist on the phantom offer scam:
You’re interested in a place that has been sitting on the market, but it’s priced too high. Get a buddy to make a serious low ball offer on a place. Something below what you would be willing to pay. Wait awhile and get another buddy to bid even lower. After a few of these bids, then come in with your real offer.
Brilliant!
I like it. The important thing is that the callers all have some knowledge of local markets, and sound like they know things are tanking. After a few such calls, the selling agent’s confidence will start to sag. They’ll be going back to their client saying, “The offers are all coming in way low, and none of them have even called back! You’re going to have to lower your asking price and do it soon!” This wouldn’t work on a good agent, but given some of the no-talents currently involved in the field, it would certainly be worth a try.
It’s all a scam, and people were incredibly naive to have fallen for it.
The broker’s job is to fleece his/her clients for all they can. Your job as a buyer is to get a good deal. This is a market – it’s designed to take people’s money if they are so willing to let go of it. Smart buyers don’t buy if it’s too expensive. If this becomes the prevailing psychology, then prices start to fall. Then it really is smart money vs dumb money. Stay smart!