Estate Agents and Bidding

[Introuble83]

A friend of mine is looking to buy in my area . He is looking a 3 properties at present with 3 different agent . Bidding prices are ranging from 10% to 18% above the asking price . Seems to be no shortage of interest . My query is can these bids be verified? What’s stopping the agents from artificially increasing prices to get a higher return rate for them ?

 

[Bilbo1]

No, you would have to decide whether you trust that the bid is legitimate.
What stops then from making up bids? The risk that you pull out and they actually loose the highest bidder.

 

[NoRegretsCoyote]

What’s stopping the agents from artificially increasing prices to get a higher return rate for them ?

It would be illegal and against their professional standards.

It would also be a counter productive. They want a sale that doesn't fall through. Fake bids make it more likely that a sale doesn't occur, in which case they get paid nothing.

No estate agent could stop average prices falling 50% from 2007 to 2012.

 

[SPC100]

They are meant to have a log of bids which can be audited.

Typically, from each extra 10k the EA firm only gets 1-200 euro extra (1-2p.c. commission).

The main motivation they would have to artificially inflate would be to get the seller to agree to actually sell.

They make their money from closing as many deals as they can

 

[lledlledlled]

I wouldn't put it past some estate agents to artificially inflate prices, although not in a rising market like we have at present. As SPC said, they make their money from closing sales.

 

[DeeKie]

It’s hard to know. There’s a house in our neighbourhood that we are interested in. 950k asking. We are told three bids without a viewing. Now at 1.16m. No viewings yet. Mad Ted.

 

[SPC100]

What do you think it is worth? what have similar sold at? Was the asking obviously too low?