Wondering can real estate agents lie about offers? An industry expert confirms it’s a common bluffing tactic and reveals how buyers can protect themselves.

The Common Tactic: Inflating Offers to Drive Up Price

A Sydney real estate agent has publicly confirmed a widespread suspicion among home buyers: some agents will falsely claim to have received higher competing offers to pressure buyers into increasing their bids. An industry professional stated that this deceptive practice is used to secure a higher sale price and demonstrate an agent’s effectiveness to potential future clients.

This directly answers the critical question for many buyers: can real estate agents lie about offers? According to the insider, the answer is yes, and it happens more often than many realize. He describes the motivation as “greed,” noting that an agent who secures a record price for an area is more likely to win future listings.

How to Call the Bluff and Protect Your Budget

For buyers concerned about the question, can real estate agents lie about offers, clear strategies exist to counter this tactic. The key advice is to avoid showing excessive emotion or interest in a property, as this makes a buyer more vulnerable to pressure.

If an agent claims a higher offer exists, the recommended response is to calmly state, “Alright, you go with the higher offer.” This approach is effective because if the higher offer is genuine, the agent will pursue it. If it is a bluff, this response forces the agent to either accept the original offer or reveal their deception.

Seeking Proof and Doing Your Homework

Experts also highlight a crucial distinction for buyers navigating this issue. In a standard private treaty sale, you can ask an agent for proof of a competing offer. However, during an auction campaign, agents are typically prohibited from disclosing offer details.

Ultimately, the best defense is thorough research. Understanding recent sale prices for similar properties in the area helps buyers make confident, rational offers and spot when agents pressure them to overpay. This knowledge is the most powerful tool for anyone questioning, can real estate agents lie about offers.

Is it illegal for a real estate agent to lie about another offer?

In a standard sale, providing false information about competing offers can be considered misleading and deceptive conduct, which is illegal under consumer law. However, regulations can vary, and during an auction campaign, the rules are often different.

What should I do if I suspect an agent is lying about another offer?

You can call their bluff by politely telling them to accept the “higher offer.” If it’s genuine, they will. If not, they will likely come back to you. You can also ask for proof of the competing offer in a private treaty sale.

How can I avoid overpaying due to this tactic?

Do not become emotionally attached to a single property. Conduct thorough research on recent sales in the area to know the property’s true market value. Submit your best offer and be prepared to walk away if the price exceeds that value.