Are these ethical sales tactics?

Are these ethical sales tactics?

9:26 AM, 21st September 2016, About 8 years ago 22

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I would be interested to know what other people feel about this behaviour from an estate agent? I saw a property that I very much wanted to buy and after having my original offer turned down I decided to offer the full asking price.Sales

I was informed that there were 2 other parties interested but I was the only one who had offered the asking price, however they had decided to give all parties the chance to offer a “final and best” bid. This in itself was strange as the asking price had been reached. I understand of course that they were looking to achieve the best price and so had little choice, but to go along with it. It was made very clear to me that the highest offer would get the deal.

Because I wanted the house I significantly upped my offer and baring in mind the other parties hadn’t even offered the original asking price I was confident of winning.

Now this is where it gets a bit murky. I failed with my bid, I pushed them for a reason as I was convinced my bid was highest. They seemed to imply that my bid may well have been the highest, but that other criteria had come into play. They were very vague on what this criteria was and would not tell me what the other bids were, stating this information was confidential. I doubt it is confidential especially as the winning bid would then be a matter of public record at the Land Registry when the sale completed.

I am suspicious that the “final and best” offers weren’t adhered to correctly and that underhand methods have been used. If indeed other criteria were involved, why was I not informed of what this criteria was beforehand. I offered what I believe to be the best price and was in a position to pay cash if required so I can’t see what other factors may have swayed the deal.

If I was cynical I would think that one of the interested parties had an inside track and were always going to win the deal, whatever I did. It could of course all be sour grapes on my part because I lost.

David


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Comments

Ian Narbeth

15:58 PM, 22nd September 2016, About 8 years ago

Reply to the comment left by "John Constant" at "22/09/2016 - 11:50":

It may not bother an unscrupulous agent but pretending there is another higher offer in order to induce a yet higher bid may be a criminal offence under s2 Fraud Act 2006 of fraud by false representation http://www.legislation.gov.uk/ukpga/2006/35/section/2

Onslow Clough

21:42 PM, 22nd September 2016, About 8 years ago

Thank you all for the feedback, clearly the "best and final" offer is very vague. I appreciate that the estate agent is obliged to get the highest offer, but i offered well over the asking price in my final bid and still failed.

I suspect my offer wasn't presented to the vendor. If my bid wasn't the highest offer then surely the estate agent could simply say that, but didn't. I made it clear that i was in a position to pay cash if needed but for obvious reasons preferred a loan, so that can't be a reason either.

The problem with escalating this to an ombudsman is one of proof. The estate agent gave back no feedback whatsoever other than suggesting that other criteria came in to play, but this criteria wasn't made clear either before or after the bidding process. Needless to say vendor details were not forthcoming so going direct is not an option.

Mark Alexander - Founder of Property118

21:47 PM, 22nd September 2016, About 8 years ago

Reply to the comment left by "Onslow Clough" at "22/09/2016 - 21:42":

It's easy enough to find the vendor. Start with an HMLR search. If you draw a blank from that using a no-find-no-fee search agent. It might cost you £50 all in.

Depends on how miffed you are about this and how far you're prepared to go.
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Adrian Jones

8:28 AM, 23rd September 2016, About 8 years ago

Reply to the comment left by "Mark Alexander" at "22/09/2016 - 21:47":

Or you could go round and knock on the door.

Mark Alexander - Founder of Property118

8:52 AM, 23rd September 2016, About 8 years ago

Reply to the comment left by "Adrian Jones" at "23/09/2016 - 08:28":

Yes if they live there, or you know where they live
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Onslow Clough

22:53 PM, 23rd September 2016, About 8 years ago

Reply to the comment left by "Mark Alexander" at "22/09/2016 - 21:47":

You're right Mark, £50 to the HMLR? I'm miffed but not that miffed.

Onslow Clough

22:56 PM, 23rd September 2016, About 8 years ago

Reply to the comment left by "Adrian Jones" at "23/09/2016 - 08:28":

That's part of the problem. It's a vacant investment property so no owner on site and the landlord is nowhere to be seen.

Mark Alexander - Founder of Property118

23:03 PM, 23rd September 2016, About 8 years ago

Reply to the comment left by "Onslow Clough" at "23/09/2016 - 22:53":

Only £3 to HMLR, the rest to a no trace no fee agent.
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Adrian Jones

9:20 AM, 24th September 2016, About 8 years ago

Reply to the comment left by "Onslow Clough" at "23/09/2016 - 22:56":

Sorry Onslow, are you David?

15:51 PM, 24th September 2016, About 8 years ago

Several years ago my sister lost out on a house in a similar situation. She ended up buying a house in the same street and found out the 'successful' purchaser of the house was the sister of the agent and when she checked on land registry she had offered a higher amount of money. She reported this to various bodies at the time, none of whom were interested. In reply to the complaint the agent simply said other criteria were factored in. My sister was a cash buyer able to move immediately. We simply have to accept some people are crooks.

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