Estate agents work for the seller of a property, ensuring that their client gets the best offer they can. However, like any job role, their aim is to make money. Estate agents do an important job but buyers should be aware of tactics they can implement to sway your decision when it comes to buying a property.
Changing the guide price
An agent could post a property at a higher guide price than what the home is worth to see how much interest it garners.
If offers are low, the guide price could be adjusted lower which will attract more bids.
But more bids can push the actual price back up to the original price, or even above it.
This has been common during the pandemic where high demand and a lack of supply have driven up prices.
Inventing offers
This doesn’t happen often, but estate agents can make up offers to sway you to raise your own.
This can also happen after your offer has been accepted which can be feel disheartening if you’ve spent money on surveys etc.
If you’re unsure about the legitimacy of a bid, you can challenge an agent and ask for proof that it exists.
Some estate agents operate good will charters where the buyers and seller put down refundable deposits when an offer is agreed.
If either party pulls out, the other side gets to keep the deposit.
This can stop buyers being gazumped which is when a seller accepts a higher offer from a third party after accepting your offer.
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