Is it true when a broker says there are offers but the open house is still on that there really isn't offers?

Asked by Ade, 11104 Sat Jan 21, 2012

Really interested in a specific coop but broker slitley pressuring fact that it's a hot property and that there have been many offers and that it will probably be sold on open house over the weekend

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Mack McCoy, Agent, Seattle, WA
Sat Jan 21, 2012
No, it's not true.

This has been a popular question recently, and I think that if you think this through, telling people there are already offers will scare off some people, especially people who were hoping to come in and "negotiate hard." If the agent doesn't have any offers, s/he runs the risk of scaring off the few people s/he could "negotiate" with.
2 votes
Ron Thomas, Agent, Fresno, CA
Sat Jan 21, 2012
First of all, the Seller may have instructed him to hold all Offers for the first 7-10 days.
Secondly, The Agent is certainly allowed to hold Open Houses, anytime.
Thirdly, why don't you have your own Agent representing you?

Good luck and may God bless
2 votes
Michael Emery, , Minneapolis, MN
Sat Jan 21, 2012
I schedule my open houses days ahead of the actual event. In that period of time between placing the open online and the actual open, I have received offers. But since the open is already scheduled, I go ahead with the open but I may also inform potential buyers that the seller is considering an offer, or that an offer is pending.

Sometimes when an agent and their client get an offer that is too low, they will use the open house as a vehicle to shop for better offers. On my last two listings it was the 2nd or even 3rd offer that was eventually negotiated and accepted.
1 vote
Alan May, Agent, Evanston, IL
Sat Jan 21, 2012
An offer is just that.... an "offer". It's not a signed and ratified contract.

We don't stop "marketing" (and open house are part of that marketing) unless and until we have a rock-solid contract in hand, and past its contingencies. The broker may not be pressuring you, instead they may be doing you a favour by telling you that if you're interested... this property has a lot of action.

You'll know if they were blowing smoke rather soon, if it's still on the market in three weeks, with no contract.
1 vote
Suzanne MacD…, Agent, Succasunna, NJ
Sat Jan 21, 2012
It's not at all unusual for the open house to take place even with offers on the table. It's a mis-conception that Open Houses are designed to find a buyer for a particular property. Open Houses are to find buyers, period! Most don't buy the house they visit, but a savvy realtor can follow up with Open House visitors and perhaps keep them as a buyer client and ultimately sell them a different house. And remember, depending on the laws where you live, offers may have to survive an 'attorney review' period during which they can be cancelled without penalty, so it makes sense to continue looking for other buyers just in case.
1 vote
Anna M Brocco, Agent, Williston Park, NY
Sat Jan 21, 2012
The seller may be holding out for the best offer, with the best terms, therefore not unusual for an agent to hold an open house, even though offers may exist; until an offer is accepted and a contract is in place, the seller can authorize as many open houses/showings he/she wishes; what is your agent advising....
1 vote
Jim Walker, Agent, Carmichael, CA
Sat Jan 21, 2012
When there are many offers, it is called a multiple offer situation. Brokers and agents are ethically required to disclose this as a fact when this is the situation.

If no offers had been made the broker could not have made the statement. If a broker lies to a consumer about the existence or non-existence of offer (offers), that broker could face serious discipline for lying.

Is it possible that you have encountered a dishonest person that decided to lie to you for no good reason? What? to encourage you to overbid the list price? That is of very little benefit to him.

As many people react to the report of multiple offers by declining to compete as those who choose to join in the bidding.Lying to you would have been a self-defeating strategy for slitley.

If you think most people are lying to you most of the time, then feel free to go through life that way. Though I warn you, carrying that level of universal distrust is as naive as believing that everyone tells the truth all the time. (Watch the movie "The Invention of Lying" starring Rick Gervais.) http://www.youtube.com/watch?v=yfUZND486Ik

Realistically, if the reward for telling the truth has a better expected outcome, then even a basically dishonest person will tell the truth in that particular instance, simply because it is in his own best interests.

The exception to the above theory is pathological liars. My theory is that normal humans do often lie when the apparent benefit to them of telling a lie is greater than the apparent immediate penalty. Pathological liars will lie to you, rather than tell the truth even when it imparts no outward benefit.

So if you have know this guy for quite some time, and he is always lying about everything, then the answer to your question is "yeah, maybe"

If you don't know him that well, you should understand that the percentage of pathological liars in our midst is still fairly low, though it seems larger than it is because of the damage they do, and the fact that even normal humans lie sometimes.
0 votes
Marie Souza…, Agent, Centerville, MA
Sat Jan 21, 2012
There could be offers & they are waiting until after the Open House to decide what to do. There could even be an accepted offer, but the agent still holds the open house for backup since there is quite a bit of marketing that goes into a successful open house.
Like mentioned below, it's best to let your agent explain this to you. Don't have one yet, now is the time!

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