Realtors work for the seller of a property, making sure their client gets the best deal possible. However, like any job, their goal is to make money. Real estate agents do an important job, but buyers should be aware of the tactics they can use to influence your decision when it comes to buying a property.
Modification of the guide price
An agent could list a property for a guideline price higher than the home’s value to see the interest it generates.
If the bids are low, the guide price could be adjusted downwards, which will attract more bids.
But more auctions can push the actual price up to, or even above, the original price.
This was common during the pandemic where high demand and a lack of supply drove up prices.
It doesn’t happen often, but realtors can make offers to get you to raise yours.
It can also happen after your offer has been accepted which can be overwhelming if you’ve spent money on surveys etc.
If you are unsure of the legitimacy of an offer, you can challenge an agent and ask for proof that it exists.
Some real estate agents operate goodwill charters where buyers and sellers deposit refundable down payments when an offer is accepted.
If one of the parties withdraws, the other party retains the deposit.
This can prevent buyers from being surprised, i.e. when a seller accepts a higher bid from a third party after accepting your offer.