Was there really another offer?

Ask Phyllis: a blog series of frequently asked real estate questions.

Dear Phyllis,

My mother reads your real estate question and answers and told me to get your opinion. My fiancé and I made an offer on a La Crescenta home that had been on the market for nearly three weeks. Our agent confirmed with the seller’s Realtor that there were no offers. When we sent ours in, the agent said she was expecting another and that we should quickly change to make ours for the full price to secure the home. We increased our offer, and the seller accepted. We are happy there but feel like we were played. Do you think there really was another offer?

Kristen

Dear Kristen,

Congratulations on your successful purchase. One thing to consider is if the listing agent represented her client properly. The presence of another bidder could have led to the home selling over the asking price.

It’s understandable to feel skeptical when you’re told there’s another offer coming in on a home you want to buy. This is especially unsettling when the home has been on the market for a while. However, there are several reasons why it may not be a bluff:

1. Agents risk their license: Real estate agents are bound by codes of ethics and regulations that prohibit us from lying about the existence of other offers.

2. Reputation matters: Agents value our reputation in the industry.

3. It could backfire: If an agent bluffs about another bidder and a buyer decides not to engage in a bidding war, it could lead to the loss of a genuine buyer.

4. In your case, although there was not yet another written offer, the listing agent said she knew of another buyer’s interest. In such cases, the agent may inform other interested parties to ensure everyone has a fair chance to submit an offer before deciding.

Ultimately, with your agent’s guidance and the information you’re given, you needed to decide. While it’s challenging to obtain concrete proof of another offer, considering the potential risks for agents and sellers, the information provided about another offer coming in was likely genuine.

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