Phantom Offers Real Estate
Dirty tricks of crooked Realtors
Most of you may never hear about this terminology but if you are Real Estate Investor, who is buying Real Estate from decade you might have been a victim of Phantom offer. Phantom offers exist virtually in the head of Listing Real estate Agent. The practice is very old and dirty trick of the trade. There are few bad apples who intend to give the whole industry bad name. This type of practice get rarely challenged.
What is a Phantom Offer in Real Estate?
Phantom offers can be used by selling agents to spark extra rounds of bidding or to spook potential buyers into rushing or raising offers. The practice is considered a breach of ethics under the Real Estate Boards.
How phantom offers benefit greedy Listing real Estate agents?
Usually these offers intend to raise offering price from the current offers. Listing agent will ask you and all other competitive agents that he have several offers and after reviewing all of them, the seller have asked everyone to up their offer to compete with others. Due to multiple offers, the buyer led to believe that this must be a great property and they must offer premium price to get their property. Usually the listing agent will create a big rush and manipulate and exert tremendous pressure for the potential buyers until they find their victim. It means double or more commission especially when they are also represent ting the buyer.
What is the law or ethics?
It is illegal, breach of trust and unethical.
How to expose this practice?
The best way to expose needs a game plan. The best recommendation will be to register your offer with the office and ask the Realtor to represent to the Seller. If you think the listing agent has a phantom offer, back off and send a letter to the Home seller congratulating them on attaining more multiple offers and ask if the property is available or sold to the highest bidder. Also, report this matter to the Listing broker's office and please do not forget to send a carbon copy to Local Real Estate board. If there was a phantom offer, the listing agent has lot of explaining to do with the seller, their own broker and the Real Estate board.
Chances are the crooked listing agent can lose their license.
Being a professional Real Estate investor, we do not need to be a victim of Phantom offers; instead we should get rid of ill practicing realtors who intend to look after themselves instead of home sellers and or Real Estate buyers.
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The above information is provided as a guideline and is not intended to give a professional legal advice. Please consult a real estate lawyer for their opinion on your particular case
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