Should You Call a Seller’s Bluff If They Say Another Offer Is Coming in on a House You Want to Buy?
The Lighter Side of Real Estate • July 16, 2023
It’s not uncommon for home buyers to feel they’re being lied to when they’re told there’s another offer coming in on a house they want to buy, no matter what the current real estate market is like.
But considering you’ve probably been hearing that houses are taking longer to sell, prices are coming down, and there are fewer buyers to compete with, it might seem even more suspicious if you’re told there’s another offer on a house you want to buy right now.
All of that is true in many areas, so an offer mysteriously coming in on a house you want to buy is even more unbelievable when the one you have your eyes on has been on the market for some time. It’s like, how in the world did someone else randomly decide to make an offer on this house when it’s been on the market 87 days? Where have they been? Why now? Do they even really exist, or is the seller bluffing?
If you find yourself in that position, it’s natural to be skeptical. It’s always possible that a seller (or their agent) is bluffing, and a little skepticism isn’t the worst thing in the world, especially when you’re deciding on how much to offer on what is typically the largest purchase most people make in their lives.
But the reality is, it’s not uncommon for another offer (or several others!) to come in at the same time you decide to make an offer on a house, even if it’s been on the market for a while.
Unfortunately, it’s almost impossible to ask for — and actually get — “proof” of another offer. You just have to trust what you’re being told, and your gut.
Here’s Why It’s Probably Not a Bluff
Fortunately, there are a few reasons why the seller and their agent probably aren’t bluffing…
- An agent could get in trouble for lying. Between the National Association of Realtors Code of Ethics (which most agents adhere to), as well as state and national real estate rules and regulations established to protect the consumer, most agents wouldn’t risk losing their license by lying about the existence of another offer.
- It could hurt their reputation. Besides legal trouble, most agents wouldn’t want to damage their reputation — which could cost them future clients and business — for the sake of creating urgency on one listing.
- It could hurt their seller. If they bluff it might cause a buyer to disappear either because they simply want to test and see if there truly is another offer, or just don’t want to get involved in a bidding war. If the buyer doesn’t come in with an offer and the seller’s agent has to push for them to submit one because the other offer didn’t come in, or never truly existed, they have lost leverage and negotiating power.
- Sometimes it isn’t so much a lie, as it is a heads up. A lot of times there may not actually be an offer in writing, but the listing agent knows there’s another buyer interested in making one. There’s nothing wrong with the listing agent letting other interested parties know there’s another offer potentially coming in, or already received, in order to make sure everyone who’s interested has a fair chance at making an offer before they accept one.
- A property you like is likely to appeal to another buyer. No matter how few buyers are in the market, there’s always a chance there’s at least another buyer actively looking for a house in your area and price range. And if you like a house, there’s a good chance anyone else in the price range will see the value in it as well.
Here Are Your Options for Dealing With a Potential “Phantom” Offer
First and foremost, if you’re being told there’s another offer on a house you want to make an offer on, your agent will likely ask the listing agent how they’ll handle the process. The listing agent will guide them by telling them whether they want you to submit your “best and final” offer right up front, or if they want an initial offer and plan on coming back to everyone with a chance to improve it or negotiate further.
Ask your agent how he or she feels about the existence of another offer. Your agent should have a good understanding of the current market activity, and a sense about whether they can trust what the other agent is saying, based upon their experience in the field.
Depending upon how you and your agent feel after assessing, you can:
- Call their bluff and not submit an offer. If you’re really confident that there truly isn’t another offer, you could tell them you’ve decided not to make an offer and hope that they change their tune and more or less beg you to come in with an offer. But this is extremely risky, because if there is another offer, you’re not going to even be in consideration and could lose out on having a shot at getting it. It could be really disappointing to see the house sold to someone else, especially if it’s for less than you were willing to pay for it.
- Make an offer as if there isn’t another one. If you’re not entirely convinced that there’s another offer, you can always make an offer that you’d ideally make if there wasn’t another offer coming in. In other words, make an offer that isn’t your highest or best terms and try to get the best deal possible. The downside to doing this is it could hurt your chances by making you look less serious or as strong as the other buyer if another one exists, even if you do eventually improve your price and terms.
- Submit a strong offer you feel good about, whether you get the house or not. Your best (and safest) bet is to just make the strongest offer you feel comfortable making. Make an offer that you’d feel happy having paid to get the house if they accept your offer, and wouldn’t regret if another buyer did exist and their offer ended up being chosen over yours. This way you’re in the mix and will feel like you’ve at least given it your best shot.
The Takeaway:
When you’re told there’s another offer coming in on a house you’re interested in buying that’s been on the market for a while, it’s easy to wonder if it’s true, or a bluff. But it’s even more difficult to believe in the current market where houses are supposedly taking longer to sell, prices are coming down, and there are fewer buyers to compete with in many areas!
Unfortunately, it’s almost impossible to get “proof” of another offer. You just have to trust your gut, and what you’re being told. Fortunately, it’s risky for a seller or their agent to lie about the existence of another offer, so it’s probably not a bluff.
While you can call their bluff and either not make an offer at all, or make one that isn’t your strongest or best, your safest bet is to make the strongest offer you feel comfortable making.
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Why So Many Homeowners Are Downsizing Right Now For a growing number of homeowners, retirement isn’t some distant idea anymore. It’s starting to feel very real. According to Realtor.com and the Census, nearly 12,000 people will turn 65 every day for the next two years . And the latest data shows as many as 15% of those older Americans are planning to retire in 2026. And another 23% will do the same in 2027. If you’re considering retiring soon too, here’s what you should be thinking about. Why Downsize? Now's the perfect time to reflect on what you want your life to look like in retirement. Because even though your finances will be going through a big change, you don’t necessarily want to feel like you’re living with less . But odds are, what you do want is for life to feel easier . Easier to enjoy. Easier to manage. Easier to maintain day-to-day. The Top Reasons People Over 60 Move You can see these benefits show up in the data when you look at why people over 60 are moving. The National Association of Realtors (NAR) finds the top 4 reasons aren’t about timing the market or chasing top dollar. They’re about lifestyle: Being closer to children, grandchildren, or long-time friends so it’s easier to spend more time with the people who matter most Wanting a smaller, more functional home with fewer stairs and easier upkeep Retiring and no longer needing to live near the office, so it’s easier to move wherever you want Opting for something smaller to reduce monthly expenses tied to utilities, insurance, and maintenance No matter the reason, the theme is the same: downsizing isn’t about giving something up. It’s about gaining control and choosing simplicity. And it brings peace of mind to know your home fits the years ahead, not the years behind. And the best part? It’s more financially feasible now than many homeowners would expect. The #1 Thing Helping So Many Homeowners Downsize Here’s the part that makes it possible. Thanks to how much home values have grown over the years, many longtime homeowners are realizing they’re in a stronger position than they thought to make that move. According to Cotality , the average homeowner today has about $299,000 in home equity . And for older Americans, that number is often even higher – simply because they’ve lived in their homes longer. When you stay in one place for years (or even decades), two things happen at the same time: Your home value has time to grow. Your mortgage balance shrinks or disappears altogether. That combination creates more options than you’d expect, even in today’s market. So, whether you just retired, or you're about to, it's not too soon to start thinking about what comes next. Sure, it can be hard to leave the house you made so many years of memories in, but maybe it’s time to close one chapter to open a new one that’s just as exciting. Bottom Line Downsizing is about setting yourself up for what comes next – on your terms. If retirement is on the horizon and you’ve started wondering what your current house (and your equity) could make possible, the first step isn’t selling. It’s understanding your options. Let’s talk. A simple, no-pressure conversation can help you see what downsizing might look like – and whether it makes sense for you.
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You’ve probably seen the buzz lately about 50-year mortgages possibly hitting the U.S. market soon. If you haven’t come across it yet, you probably will—whether in a headline, a newsfeed scroll, or it’ll just be an option the next time you’re house hunting. At face value, it sounds like a pretty sweet deal for anyone feeling squeezed by prices and rates. Stretch the payments out over half a century, and suddenly that monthly bill looks a whole lot friendlier. What’s not to love, right? Well, that depends on your perspective. So before deciding whether this could be a game-changer or just another gimmick, let’s make sure you’ve got enough info to have an informed opinion… Lower Payments? Yes. Lower Costs? Not Exactly. For many, the appeal comes down to affordability. A longer loan term could help buyers qualify for homes that might otherwise be out of reach, or simply make monthly payments more comfortable. That part is true, but where there’s a “gimme” there’s a “gotcha.” While the monthly payment may drop, the total cost over time can skyrocket. Stretching a loan over half a century means paying additional interest for half a century. The “savings” you feel each month could easily be swallowed up—and then some—by what you’ll ultimately pay in interest. Just Another “New” Option A 50-year mortgage might sound new and exciting, but it’s really just another option that isn’t currently offered. (Well, at least not all that often.) Buyers already have plenty of choices when it comes to loan terms: 10-, 15-, 20-, and 30-year mortgages are all standard options. Add in the mix of fixed-rate and adjustable-rate structures, and you’ve got a wide range of combinations designed to fit different financial situations. But more often than not, people lean toward the 30-year fixed rate loans. Technically, 40- and even 50-year mortgages already exist, though they’re rare in the U.S. and typically not backed by government programs. According to The White Coat Investor , they’re far more common in Europe, where ultra-long-term loans have been part of the financial landscape for years. A Matter of Perspective Whether a 50-year loan sounds appealing often comes down to your personal philosophy, and your tolerance for long-term debt. Some buyers lean toward shorter-term loans—like 15 or 20-year mortgages—because they want to own their home free and clear sooner and pay less in interest. Someone taking this approach, especially with a 15-year fixed or adjustable-rate mortgage, is often very disciplined about paying extra each month to chip away at the principal. To them, the vast majority of people opting for a 30-year fixed loan might look like they’re squandering money by stretching payments out unnecessarily and paying far more interest than they need to. On the flip side, 30-year borrowers often see the world differently. They value lower monthly payments and the flexibility it provides—whether to invest elsewhere, cover lifestyle costs, or just have breathing room in the budget. To them, those who aggressively tackle a 15-year loan might seem either a little extreme… or just downright wealthy to be able to afford such high payments. So, just like 15-year buyers might shake their heads at 30-year loans, 30-year borrowers will likely question a 50-year term. The point is, there’s no “right” choice. It’s about what makes you comfortable financially and psychologically. Is It Worth the Monthly Savings? Whether the monthly savings makes sense really depends on your perspective and personal situation. Everyone’s circumstances are different, so this is a question only you can answer for yourself. When you’re considering what type of loan and terms to choose, you’ll need to crunch the numbers at that moment—current rates, your credit score, and other factors will all play a role. But to give you some general perspective, HousingWire did some math you might find useful. According to the article, stretching a loan out to 50 years might shave around $100–$200 off your monthly payment compared to a 30-year mortgage. That’s not nothing—it could make a tight budget feel a little more comfortable. However, because you’re paying interest for an extra 20 years (or more), the total cost over the life of the loan can balloon dramatically. In the examples they gave, the interest payments were more than double what they would have been with a 30-year loan. And we’re talking hundreds of thousands of dollars. That “nice little savings” each month comes at the expense of paying far more in the long run. So yes, you’ll feel relief each month with a lower payment, but over decades, your home ends up costing a lot more than the purchase price. That’s the trade-off. A 50-year mortgage isn’t inherently bad; it’s just a choice between short-term comfort and long-term savings. And it’s a choice worth thinking through carefully before signing anything. The Takeaway: The idea of a 50-year mortgage might sound like a silver bullet for housing affordability, but the reality is more nuanced. Sure, it could make monthly payments a bit lighter—but it could also cost much more in the long run and potentially nudge home prices even higher. As with most things in real estate, there’s no one-size-fits-all answer. It’s not necessarily right or wrong, it’s about what’s right for you. The key is to understand exactly what you’re signing up for before committing to a loan that could last longer than most careers.
