Peter Rogozik Property Consulting: Your Buyers Advocate - Connecting People and Property

Your Buyers Advocate News

Dummy Bidding Alive and Well

A real estate agent situated in Melbourne's inner west has resorted to using a dummy bidder on properties that are unlikely to attract multiple bidders. On the 23rd of May of last year I attended an auction in Yarraville with a young couple hoping to purchase their first home. The dummy bidder placed several bids before the property was passed in. I was immediately suspicious as I was aware that this person was an associate of the selling agent in that he provided maintenance services to their property management division. After the property was passed in he strategically stood in front of the property giving the false impression that he was an interested buyer. The selling agent was conversing with him in a further attempt to put pressure on my clients. This is a tactic that some unscrupulous selling agents use when a property is passed in and there is only one genuine buyer interested in the property. Inexperienced buyers become fearful that another party will purchase the property and are therefore duped into paying a much higher price for the property.

With the permission of my clients I walked over to this person and reminded him of the serious consequences in relation to dummy bidding. My strategy worked as he scampered off down the street with a very fearful look on his face. When I challenged the selling agent about their dummy bidder, they didn't deny my accusation.

 

Return to the main news page

 

 

Related Pages:

No related articles