Friday, October 29, 2010

Real Estate Agent Tricks

Have you heard about these two tricks from real estate agents?

One is listing a property for sale by forthcoming auction, but never actually scheduling the auction. There is no list price, and the agent tells prospective purchasers do get in quick before the vendor has to pay for advertising, and that once the auction campaign commences, the vendor will not accept conditional offers subject to finance or building inspection.

The second trick is to set a high reserve at the auction. The agent then takes telephone bids, but in fact, the person bidding via telephone is a friend or co-employee. Because the agent knows the reserve, the fake telephone bidder comes in close to but just below the reserve. This bids the price up, and then when the property doesn't sell at auction (as it usually will not), the agent then lists the property at the reserve price and says that there was a bidder just below the reserve (which, of course is not true).

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