It has been quite fascinating at times to find just after a property has gone under contract, that another very upset potential purchaser comes forward (seemingly out of nowhere), not happy that they missed out. It does highlight that at times, hesitating or playing it cool can certainly backfire.
So what has actually happened in those situations? The potential Purchasers may have acted disinterested or decided to ‘wait’ before calling about it. Other times they may have even insisted that they definitely would not increase their offer, or even make one in the first place, knowing that there is another offer being presented. So the process goes on and the property is sold to someone else.
Why didn’t they make it clearer that they wanted the property? It may come down to the very unfortunate, inherent distrust people can have towards sales people (especially in real estate). It’s also just as common for any private sellers, and not just in Real Estate. They don’t know the seller so how do they know they can trust them when their main aim is to just achieve the highest price? Perhaps the Purchasers didn’t want to reveal how they really felt in fear that it may hurt them in negotiations later. Maybe they didn’t believe the Agent or the seller was being honest when they said they had someone else interested.
Something interesting to remember here is that it is in the legislation that a real estate agent cannot reveal what someone else has offered (Land and Business (Sale and Conveyancing) Act 1994 (SA), section 21 (1)(e)). It is also an offence to provide false or misleading representation to induce someone to purchase a property, such as by saying there has been another offer when in fact there has not (Land and Business (Sale and Conveyancing) Act 1994 (SA), Section. 36). These are pretty serious offences. Most agents aren’t trying to break the law, despite what some unfortunate stereotypes may suggest, most real estate agents are just normal people trying to do their jobs with integrity.
So if you are a potential purchaser out there, lets set fears aside and consider that the agent is telling you the truth (as they are legally required to do) and does in fact need to know if you are interested or not. You don’t want to pay too much or rush in with such a big decision, but you also don’t want to have regrets because you hesitated. Like the property? Act quickly, you never know who else is looking at it and may just beat you to it!