Is there a way to tell if a real estate selling agent is legitimately raising the asking price of a house?

Question

I was interested in a house that came on the market for $230K. After viewing, I made an offer. A few days went by and my agent said the seller had a better offer, so I offered more than the alleged other buyer offered. Again, I was contacted and told the other buyer had topped my offer. I again had to raise my bid. I eventually bought the house for $288K, but felt the selling agent was just saying there were better offers to get the price up. I asked my agent and she said that that are regulations that prevent that, but I don't know about those things.

Marco Caviglia · Answer

Off hand, I am unaware of a specific prohibition of such unethical conduct.  If one obtains proof or a pattern of this conduct unique to that agent, then complaint may be filed with the NYS Dept. of State which licenses real estate brokers and agents and they may investigate.  However, a hunch is not good enough, and one had better accumulate evidence.   Dealing with an agent with a long, solid reputation is good advice for seeking any professional, including real estate agents.   While it is suspicious that it took an additional $58,000 (over a 25% increase!) to close the deal, the decision is the buyer's.  Bidding wars are always dangerous.  One must be willing to walk away from any deal and have a maximum price in one's head.

Steven Warren Smollens · Answer

Lying to pump up a selling price is criminal fraud, and the broker will lose a license. But usually, it is not a good claim to make after you established as a matter of law a 'meeting of the minds' when you accepted the proposed selling price. It is a bit late to question the purchase price. You should have discussed this with your attorney before entering into the contract.

Q: Is there a way to tell if a real estate selling agent is legitimately raising the asking price of a house?