- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Are phantom bids legal (real estate)?
Posted on 8/30/17 at 8:52 pm
Posted on 8/30/17 at 8:52 pm
The wife and I are looking into buying a home. We put in an offer today on a house thats been on the market for 5+ months. This evening I get a phone call from our buyers agent stating another person toured the property this evening and gave a "verbal offer" to the listing agent that was higher than ours. The listing agent wants our highest and best by tomorrow afternoon.
I find it unlikely that a house sits on the market for 5 months only to have two bids come in on the same day (although admittedly possible). I dont plan on budging on price, but this got me thinking, assuming the other offer is fictional, is this an accepted real estate practice?
I find it unlikely that a house sits on the market for 5 months only to have two bids come in on the same day (although admittedly possible). I dont plan on budging on price, but this got me thinking, assuming the other offer is fictional, is this an accepted real estate practice?
5
Posted on 8/30/17 at 9:07 pm to NYNolaguy1
quote:
We put in an offer today on a house thats been on the market for 5+ months. This evening I get a phone call from our buyers agent stating another person toured the property this evening and gave a "verbal offer" to the listing agent that was higher than ours.
Did the price just get cut?
quote:
is this an accepted real estate practice?
Realtors lie almost as much as politicians.
Posted on 8/30/17 at 9:10 pm to tom
quote:
Did the price just get cut?
Last price cut was two months ago.
Posted on 8/30/17 at 9:20 pm to NYNolaguy1
I've wondered about this in an auction setting, myself. I suppose as long as the seller is okay with the idea of scaring off their main potential buyer in an attempt to drive the price up there's nothing that can be done.
You can bet that if it backfired on them and they then tried to come back to me, though, I'd cut them to the bone on price.
You can bet that if it backfired on them and they then tried to come back to me, though, I'd cut them to the bone on price.
Posted on 8/30/17 at 9:48 pm to Decisions
It's illegal and immoral. But it happens frequently.
My sister and son just went through it. Bad part is you have no way of knowing.
My sister and son just went through it. Bad part is you have no way of knowing.
This post was edited on 8/30/17 at 9:52 pm
Posted on 8/30/17 at 9:57 pm to ItzMe1972
I'm sure you want the house.
But I would love to tell the listing agent that you're withdrawing your offer.
But I would love to tell the listing agent that you're withdrawing your offer.
Posted on 8/30/17 at 10:58 pm to NYNolaguy1
quote:
The listing agent wants our highest and best by tomorrow afternoon.
Just give them this.
Legally, a "verbal" offer ain't shite. If they want to offer a written counter, fine. Otherwise, stick to your current offer and call their bluff.
Posted on 8/31/17 at 12:43 am to LSUtigerME
Drop your offer by 5000 and give them 24 hours to agree
Posted on 8/31/17 at 4:24 am to diat150
Agree - drop your price a little bit. Give them a "phantom comp" and say you walked through another property you like better that's a lower price point.
I think realtors believe that making up a fake verbal offer vs a fake written offer is less unethical somehow.
I think realtors believe that making up a fake verbal offer vs a fake written offer is less unethical somehow.
Posted on 8/31/17 at 5:08 am to ATLdawg25
I promise they will turn down your lower offer and call back in a week to say the higher offer couldn't get financing and ask you to go to your initial offer.
Posted on 8/31/17 at 6:38 am to Finch
Either way, they are staring down a long winter on the market after hoping to capitalize on the spring/summer buying season. Especially if it's in an area of primarily families with children, I would play hardball.
Edit: unless this is a house you just absolutely have to have. If that's the case, hold with your initial offer and have the agent let you know if they get another WRITTEN offer.
Edit: unless this is a house you just absolutely have to have. If that's the case, hold with your initial offer and have the agent let you know if they get another WRITTEN offer.
This post was edited on 8/31/17 at 6:40 am
Posted on 8/31/17 at 11:18 am to ATLdawg25
Good advice above, how badly do you want the house? If not that badly, re offer the same or lower. Play the game just the same.
FWIW this happens fairly often with investment grade properties. There's investors that tell realtors they are interested at price $X and the investor fades away waiting for the price to drop. When a legit offer comes in, the realtor calls the investor and they make an offer also.
Those offers are not always legit, sometimes they are low and often times the offer is just there until the investor determines they really want the property by doing a further inspection or whatever. Then they drop out.
ETA: For example on foreclosures, banks have a time frame to list a property before lowering the price. Some banks/ bankers list for 30 days some 60 or whatever. Investors know this, and they'll often wait 29 days to make a low ball offer right before the bank is about to drop the price. It seems very low, but the bank was about to drop anyway so they'll accept.
FWIW this happens fairly often with investment grade properties. There's investors that tell realtors they are interested at price $X and the investor fades away waiting for the price to drop. When a legit offer comes in, the realtor calls the investor and they make an offer also.
Those offers are not always legit, sometimes they are low and often times the offer is just there until the investor determines they really want the property by doing a further inspection or whatever. Then they drop out.
ETA: For example on foreclosures, banks have a time frame to list a property before lowering the price. Some banks/ bankers list for 30 days some 60 or whatever. Investors know this, and they'll often wait 29 days to make a low ball offer right before the bank is about to drop the price. It seems very low, but the bank was about to drop anyway so they'll accept.
This post was edited on 8/31/17 at 11:22 am
Posted on 9/3/17 at 2:43 pm to baldona
I wanted to bump this to see how the OP decided to respond.
Posted on 9/3/17 at 4:00 pm to NYNolaguy1
It's called shill bidding, and typically very hard to prove but it is illegal. I work in the world of car auctions, so I see it every day.
Posted on 9/5/17 at 6:44 am to NYNolaguy1
I would walk or my best and final would be the exact offer I made. I would also ask for the listing agents license number, & managing brokers information as you are aware verbal offers mean nothing and pen to paper is the only way to legally bind a real estate contract. Using a verbal to attempt to enter into a multiple offer situation seems to push the ethical standards set forth by the National Association of Realtors.
Posted on 9/5/17 at 1:34 pm to Retrograde
Auto finance companies shill bid in their own auctions? I understand this could happen with a privately owned/managed seller of cars, but seems a little harder to believe with a publicly traded seller (E.g. Toyota/Honda GMAC finance companies) with a very large, relatively homogeneous product (2-3 year old lease returns).
I'm always interested in the market dynamics of auctions in general. Any insight as to the specific dynamics of auto auctions would be interesting too.
I'm always interested in the market dynamics of auctions in general. Any insight as to the specific dynamics of auto auctions would be interesting too.
Page 1 of 1
Popular
Back to top
Follow TigerDroppings for LSU Football News