Is this a gimmick?

[patsg]

Real estate agents are taking backup offers for every property. Is this a new way to increase the price of the one they are selling?

I liked a house, so agreed to put an offer. Agent called me in an hour and apologized saying its already under contract. However, he was kind enough for me to put a backup offer in case the first one fails .

Is this a trick of increasing price? Is this normal?

There are few other properties that I saw today and everyone of them said its currently on offer and they are accepting backup offers.

What do you guys think of it?

Is this a new or an old trick?

[Psilan]

Harcourts did this to my parents without letting them know.
Even had a sticker on the sign [UNDER OFFER], when it never was!

This was early 90s, Wellington. We lived in Christchurch and family friends called to congratulate us on the sale.

Maybe now they aren't so stupid as to put up a sticker...

[patsg]

Even in this case there is no sign of UNDER OFFER on the sign board.
It's done as a normal open home. And I asked has there been any offers so far. The reply was, 'yes' it is under contract. I was like,,, WHAT??

This shall be informed to everyone instead of having it a normal open home.

I am feeling quite disappointed.

[halfempty]

Often the back up offer can help the vendor get the primary offer to go unconditional.

[TheLiberalLeft]

Whenever an agent indicates something's under offer I just shrug and say "oh well, I'm not interested in playing second fiddle" and walk away. That'll teach 'em. One of these days they're going to call me back and say the original offer has fallen through.

[speights boy]

FOMO
Fear of missing out.
Agents know it and love it.

[patsg]

FOMO sounds nice... lol

[kapitibeanman]

What tunes do you like to play on your fiddle, LL?

[NomoneyNotalk]

I think it's old trick that works quite well for first time buyers. In some auctions there is also bidders that work for the owner to increase price.

And being a back up puts me off, so i usually just walkaway if it is under contract

[gavinc]

If you were selling a house you would want the agent to do this - it gives you a backup should the first offer fall through, it puts pressure on the person who put in the first accepted offer to complete in a timely manner. If the agent puts a under offer sign up the number of persons visiting the open home would drastically reduce.
I sold a house a couple of years back, the first persons offer was conditional on the sale of their own house - took 5 weeks to work its way through so obviously you want to be able to accept other offers at the same time. Call the agent before the open home and ask them if there is already an offer on it - at least that way you will not waste your own time.