It is a tale as old as real estate itself: you tour a property, show a little bit of interest, and suddenly the listing agent calls to say, “We have two other offers coming in, so you better bring your highest and best!”
As a buyer, it can feel like a high-pressure sales tactic. As an agent, it might seem like a clever way to drum up urgency. But is bluffing about multiple offers actually a good strategy? Let’s break down the reality of the “fluff” in the market, the legal boundaries, and why this tactic often backfires.
The Reality of Market “Fluff”
There is undoubtedly a lot of “fluff” in the real estate market. It is not uncommon for a buyer’s agent to suspect a listing agent is bluffing when they suddenly claim to be juggling multiple offers on a property that has been sitting stagnant.
However, the real estate market can also be highly unpredictable. A property can sit dead silent for 30 or 40 days, only for two or three legitimate buyers to materialize on the exact same afternoon. Because a buyer never truly knows if an agent is bluffing or telling the truth, the best rule of thumb is always to put your best foot forward if you genuinely want the house.
How the Bluff Can Backfire
While generating urgency is part of sales, closing the door on a potential buyer through a bluff is a massive disservice to the seller.
Consider a scenario where a buyer is interested in a property that requires a significant renovation. They have the funds and the desire, but they are not desperate to move. If the listing agent calls and aggressively pushes a deadline by claiming, “We have multiple offers coming in and the seller needs to close by year-end,” a casual but legitimate buyer is likely to just walk away to avoid a bidding war.
If that property is still sitting on the market weeks later, it becomes painfully obvious that the “multiple offers” were a bluff. By trying to force a bidding war, the agent successfully ran off a highly qualified buyer and left their seller empty-handed.
The Legal and Ethical Boundaries in Texas
Beyond just being a potentially bad strategy, outright lying about the existence of multiple offers crosses a serious legal and ethical line.
Real estate professionals are bound by strict codes of conduct. Under the Texas Real Estate Commission (TREC) Rules, specifically 22 TAC § 531.2 (Integrity), a license holder has a special obligation to exercise integrity and must employ prudence and caution to avoid misrepresentation by acts of commission or omission. Furthermore, the REALTOR® Code of Ethics Article 2 prohibits agents from exaggerating, misrepresenting, or concealing pertinent facts relating to the property or the transaction.
While an agent can certainly say, “We have had a lot of interest,” fabricating phantom offers to drive up a price is a misrepresentation that can put an agent’s license in jeopardy.
A Better Strategy for Agents
Instead of using close-ended remarks or high-pressure bluffs, transparency usually yields better results.
If a seller has received offers but they are lowballs or from builders looking for lot value, the agent should keep the door open with other prospects. A much better approach is to simply state: “We have received a few offers, but the seller isn’t completely happy with them yet. We would love to see what you can put together.” This strategy keeps the buyer engaged, maintains the agent’s integrity, and provides a far greater service to the seller by keeping all options on the table.