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Coach
No because the seller is not obligated to sell.
Visual Storyteller
No one wants to pay more than they’re comfortable paying! There’s literally no way to prove this potential collusion, because you’d also have to account for buyers sitting on the sidelines, not actually engaging, because prices are higher than they’re willing to pay.
Mentor
Good luck proving market manipulation.
Exactly.
Coach
I think what OP is trying to get at, is they want to use this strategy themselves.
Besides it being unethical and illegal if you get caught there are some serious flaws to this.
1. The current market is experiencing more demand than supply. So even if you have a group of people to help you do this, odds are you will lose to other market participants.
2. To actually do this, you would need a large group of investors, with enough funds available to get pre approvals in order to even see or bid on the properties. The more people you add though, the higher risk of getting caught.
3. As others have stated, no realtor worth their salt will advise a seller to take an offer that is significantly lower than market unless the house has been sitting for months. If that’s the case in this market, the house probably has some other underlying issues that would make it undesirable to you anyway.
Overall this seems like a lot of effort for very little reward. Plus the extra risk of breaking the law and throwing away your integrity doesn’t seem like it’s worth it.
Coach
What law would this be breaking? Isn’t that OPs primary question?
Mentor
I think this would be so hard to actually execute. Let’s say that it isn’t illegal and that as an agent or even as a group of agents we advertise that we will collude to get you a house at a lower price. We then bid 5% under list for every house. Maybe that works if only one person wants the house but even within that group, as soon as a second person wants the house they will want to bid above the -5% price so that they get the house.
Are you talking about wholesalers that look for distressed properties to buy under market value?