We were looking to build a house but while on the hunt for our land, we came across a house that ticked all the boxes for us - was only six months old - and would save us the hassle and time of building.
Anyway there was an advertised open house inspection. From what we understand, the house went to auction a month or so ago but didn't meet the reserve. It was then advertised for $570,000. Still not sold - it gets reduced to "offers between $540,000 - $560,000". While there and waiting for the agent to arrive (there were about 7 other couples including us wanting to view the house), we saw people getting phone calls and then driving off. We then got a phone call to say that the scheduled open house was cancelled and to come back at 2:30pm.
So we arrive back at 2:30pm and no other prospective buyers are there. The agent takes us around and says we can think about an offer and he will phone us back shortly. So we leave the property and hubby receives a phone call from the agent asking for an offer. The listed price is between $540,000 and $560,000 so he wants to know our offer. Hubby says first offer on the table is $540,000. Agent says he will draw the contracts and to meet at his RE office.
So we drive to the RE office and while there, the agent says that in the meantime from when we viewed the property another agent has taken another prospective buyer there and they have also made an offer but he can't disclose their offer to us so what is our next offer. We think and put in $547,000.
He says the other buyer's offer is higher than that and we have one last chance to make a proper offer otherwise we will loose the house and the other person who made the offer will have it.
So we offer $555,000. The agent says he is not going to write that one down so we need to do a bit better than that.
At this stage, we walk out of the RE office. We felt there was no other contract on the table and the agent was biting at us to reach the $560,000 mark which is presumably what the seller wants.
Is all this that transpired ethical? We need to know for next time? We really got the feeling that "something didn't quite add up".
Oh and the agent made a point of saying that the Seller used to be a real estate agent who worked at that office but is no longer doing real estate.
Thanks for reading. Hope you can provide some help!