A Sydney real estate agent has revealed a tactic often used by agents to pressure homebuyers for higher offers – and the only way to call their bluff.
Amir Jahan, 25, owner of A-Class Estate Agents, warns buyers to be careful when agents claim they have received higher bids.
‘Many agents try to get extra money for the seller by saying they have higher offers, when that is not the case. They are lying,” he told Daily Mail Australia.
Jahan believes that this tactic is not just about securing the best price for sellers, but it is also a way for agents to showcase their skills and attract more listings.
‘It’s greed. “Say there’s a building or an area and most of the properties sell for $1.5 or $1.6 million,” he said.
“But if one agent sells more than all the others, who is likely to win the next deal?
“It’s not fair to the buyers because they could lose a lot of money for no reason.”
Mr Jahan explained that even if a property owner is satisfied with an offer, the agent can still try to “prove himself” by telling the buyer that a higher offer has been made, even if that is not true.
“And now that buyer likes that property and may just want to pay it off to secure the house,” he said.
Real estate agency owner Amir Jahan, 25, (pictured) has exposed how some real estate agents lie about receiving higher bids
The agent (pictured) said buyers can ‘play the same game’ by not showing too much interest in a property
Mr Jahan urges buyers to use the same tactics as real estate agents.
“Don’t show much interest in the property,” he said.
“If you want to make an offer, just do it and leave it there.
“Don’t try to chase the officer. Leave it at that.
‘And if the agent doesn’t have a buyer and really wants to sell it, he will contact you.’
He also warned buyers to stand firm if an agent responds with, “Your offer is good, but we had a higher offer.”
He advises: ‘Don’t show interest. Say “Okay, you go with the higher offer,” he explained.
‘Because if they really have a higher offer, there is no point in the agent wasting time on you if your budget is lower, they will immediately go for the higher offer.’
Mr Jahan (pictured) claims that if an agent really made a higher offer, he would not waste time on people who had made a lower offer
Mr Jahan admits that sometimes there really can be higher bids for a property – and that there is an easy way to find out.
“You can ask for proof,” he said.
‘If it is a private agreement, an agent can announce what the offers are.
‘But if it concerns an auction item, an estate agent cannot make the bids public. It’s illegal.
“However, there is nothing stopping them from telling you what the higher bid amount is on a private treaty property.”
Mr Jahan explained that the best way to avoid overpaying for a property is to do your research.
Mr Jahan said to ensure an agent is genuine, potential buyers can ask for proof of the higher offer if the property is a private treaty (photo of buyers inspecting a Sydney property in August)
“A lot of first home buyers are just excited to buy property, they don’t think,” he said.
‘They just say they love it and are willing to pay for it.
‘But do your homework. Look at the street: what was the recent property sold for?
“Are there others around that are similar to the one you like on the market?
‘Are you paying the right amount or are you paying too much for the home?’