I would like to share my recent experience while buying a property in Canberra.
After my inspection, I talked to the agent on the phone and gave him an offer. He then asked me to come to his office to sign the contract. I thought that was a clear indication that my offer had been accepted.
However, when I went into the agent’s office to sign the contract I got told another buyer had offered a higher price (they were in the room next door to me). So an auction-like competition started. I got encouraged many times to go higher. I did not see my competitor during the whole process, but every time the agent went into other room, he seemed to come out with a new higher price. I ended up signing the contract, however with a price much higher than my first offer.
I felt really uncomfortable. I’m now questioning whether there was, in fact, another buyer, or if the agent was just trying to get a higher price.
Is this behaviour common? If there wasn’t another buyer in the room next to me, is this tactic legal?
I’m assuming I’m now locked into the contract that I have signed?
Thanks for your help.