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It's an horrible practice designed to prey on desperate buyers to artificially inflate the price - but I understand why agents do it, after all they're working for the seller.
Personally I avoid all 'sale by tender' places because I think it's an immoral practice. However some areas seem to be awash with agents all doing it, so you may not have a choice.
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Haart were up to this scumbag trick when we were searching:
https://www.lfgss.com/comments/9961079/
They didn't get our business
BobbyBriggs
rhowe
@Tenderloin
For sale by tender
Anyone know much about this? Apparently means I'm paying the 1.75% fee of the agent so need to take that into account when making an offer.