A flashy real estate agent has come under fire after admitting to using a dodgy sales technique to attract competitive purchase bids.
A-Class Estate Agents Parramatta founder Amir Jahan, 27, claimed all agents use ‘imaginary buyers’ to drive up sales prices whether they admit it or not.
‘Whenever there’s a serious buyer, and they make a serious offer, then we say, “You need to hurry up because I’m talking to another buyer, and you’re going to miss out”. It is a magical phrase and it does work,’ he told news.com.au.
‘I had a property six months ago, there wasn’t even a single buyer, then a serious buyer came in and said, ‘I’d like to put in an offer’ and two hours later I called him and said, “I have another serious buyer”.’
His comments have attracted significant backlash from industry insiders who claim Mr Jahan had painted the profession with an unethical brush.
‘I completely disagree with Mr Jahan’s comments. Not only are they untrue, but they’re also a poor reflection of the agent himself,’ Metro Realty agent Joseph Fairchild told Daily Mail Australia.
‘Statements like this are exactly why some agents struggle to gain trust and respect in the industry, especially long term. Unfortunately you bring down the industry and other operators also when you operate in this mindset.’
‘Integrity is everything in real estate. While you may secure a few listings with questionable tactics, you only have one name and reputation to uphold – and that’s what truly lasts.’
Parramatta real estate agent Amir Jahan (pictured) has claimed all agents use ‘imaginary buyers’ to drive up sales prices whether they admit it or not
Mr Jahan’s comments have drawn widespread criticism among industry insiders who accused him of misleading potential buyers (the agent is pictured posing beside sold signs)
If authentic buyers ask how much their imaginary competition has offered to pay, Mr Jahan said he will usually answer that he cannot say.
Ideally, the interested buyer will then attempt to outbid themselves.
‘When we know the buyer is serious and likes it, we then use the magic words of ‘the other buyer’ and we increase the price for the vendor,’ he said.
‘From there, it is just about negotiation; sometimes it increases by $50,000. The most I ever got was $70,000, but a lot of buyers will pay more than what they were expecting.’
Mr Jahan has attracted widespread social media attention for his flashy sales techniques, particularly his use of luxury vehicles in ads.
His Instagram profile is flooded with videos of the 27-year-old behind the wheel of Lamborghinis, Rolls-Royces and Mercedes-Benz G-Wagons.
According to realestate.com.au, Mr Jahan has overseen the sale of ten properties as the lead agent in the past 12 months with a median price of $700,000.
The western Sydney agent went so far as to say an agent who claims not to use the imaginary buyer tactic is ‘not a good agent’.
Mr Jahan (pictured) has attracted a strong social media following for his flashy sales techniques including the use of luxury vehicle in property ads
Chief executive of the Real Estate Institute of New South Wales Tim McKibbin said it was ‘ridiculous’ to suggest all agents use imaginary buyers (pictured, an auction in Sydney)
His job, he claimed, is to represent the interests of the vendor. That said, he often uses the technique simply to achieve the vendor’s reserve price.
‘As an agent, it is my job just to be honest and help both parties, the seller and the buyer; the reality is I’m getting paid from the owner and not the buyer,’ he said.
‘If you’re getting paid by someone, you work for them. I’m not saying we’ve got to rip off the buyers, but at the end of the day, I’m getting paid from the vendor.’
Chief executive of the Real Estate Institute of New South Wales Tim McKibbin said it was ‘ridiculous’ to suggest all agents use imaginary buyers.
‘To make false and misleading comments… is contrary to the Property and Stock Act 2002,’ he told Daily Mail Australia.
‘Every trade, calling and profession, have people in their industry that do the wrong thing. Sadly, we have people in our industry that bring the profession into disrepute.
‘However, the data clearly shows that they constitute a very small percentage. Again, this is consistent with other industries.’
Real estate author Neil Jenman said it was a ‘bit of a broad sweep’ to claim every agent uses imaginary buyers but that most had used the technique at some point.
‘I remember once, when I was looking to buy a house, that I got so sick of hearing the “we have another buyer” statement that I used to respond to agents by saying, “That other buyer, he follows me around everywhere”.
‘There is a reason that 95 per cent of the public don’t trust real estate agents. Misleading conduct is endemic throughout the industry.
‘There are many worse and equally as common tricks than the “other buyer” trick.’
Mr Jahan (pictured) went as far to say that any agent who doesn’t know the ‘imaginary buyer’ technique is ‘not a good agent’
Century 21 real estate agent Amit Thaker categorically rejected the ‘sweeping’ claim that ever agent has an imaginary buyer, or that the tactic is universally applied.
‘These statements are not only inaccurate but also unfairly discredit the countless agents across Australia who uphold ethical standards and work tirelessly to deliver genuine results for their clients,’ he told Daily Mail Australia.
With more than eight years experience in the industry, Mr Thaker said the industry is ‘highly regulated with agents bound by strict codes of conduct, consumer protection laws, and professional obligations under state and federal legislation’.
‘Fabricating buyers is not only unethical – it is deceptive conduct and could attract serious consequences, including disciplinary action, fines and loss of license. Blanket generalisations like these erode public trust and undermine the professionalism of agents who consistently act in the best interests of their clients,’ he said.
Daily Mail Australia has contacted Mr Jahan for comment.