Estate Agent and Gazumping?

[Jimbeam3678]

It is a bit at odds with your point lol. In this example the chap already had multiple overs over the price they wanted. Others involved would be asked to increase their offer if interested - which is the behaviour you didn't like.

Maybe I explained myself badly, the first person to offer the asking price should be given first refusal. For me its the original listing which is key 'asking price' is just that, what they want. If its 'offers in excess of' then that is completely different.

In short just don't be a greedy ****! House buying is stressful enough without adding to it. Again I accept everyone's opinions will differ

 

[Jono8]

Sounds like they valued it too low if your family member offered at asking within days of it being put on the market, especially with the property market as it is.

Add to the fact that they want an extra £25k for a flat (unless it's some fancy london pad), then yeh...they seem to have heavily undervalued it.

Most property is sitting on the shelves for ages at the moment.

 

[MissChief]

Given the EA company gets a commission directly as a percentage of the sell price its in their own interests (as well as the sellers) to get the maximum sell price. An extra £10k or £20k could be worth hundreds to the agent and a thousand or more to the company itself. With house prices these days a £250k flat with 3% of the sell price in commission is £750. The agent could be in line for half that. If they manage to up the price to £275k that’s an extra £75 in the agents pocket. Sell four or five houses a week and that’s an extra £300 in your pocket every week, £1,500 a month. Of course they’re going to push the price as high as they can.

 

[dlockers]

Given the EA company gets a commission directly as a percentage of the sell price its in their own interests (as well as the sellers) to get the maximum sell price. An extra £10k or £20k could be worth hundreds to the agent and a thousand or more to the company itself. With house prices these days a £250k flat with 3% of the sell price in commission is £750. The agent could be in line for half that. If they manage to up the price to £275k that’s an extra £75 in the agents pocket. Sell four or five houses a week and that’s an extra £300 in your pocket every week, £1,500 a month. Of course they’re going to push the price as high as they can.

The clue is in the name as well. They are agents of the seller, and the seller is paying them. I'd be pretty mad if they didn't act in my best interest (money).

 

[danlightbulb]

I'd be pretty mad if they didn't act in my best interest (money).

If you really liked one of the viewers that came, and they didn't quite get the top bid on a best and final offer process, wouldn't you go back to them and give them the information and see if they want another shot?

Doesn't change the money you get, but isn't it a nice thing to do?

 

[dlockers]

If you really liked one of the viewers that came, and they didn't quite get the top bid on a best and final offer process, wouldn't you go back to them and give them the information and see if they want another shot?

Doesn't change the money you get, but isn't it a nice thing to do?

I hope the house I buy accepts "acts of kindness I offered to someone else" as a currency

 

[Mysterae_]

When I bought our current house the property owner's estate agent was on a fixed sum contract, none of this 0.5% - 3.0% of the purchase price of the house. The estate agent gets paid the same if the house is £150k or £1.5M.

I think the law should be changed to enforce such a thing for all estate agents as it would stop them trying to drive the market and their scummy behaviour. Just sell the property within a given timescale and be done with it.

I agree that the entire house buying and selling process is still in the stone age; with today's technology it should take half the time or less.

 

[danlightbulb]

I hope the house I buy accepts "acts of kindness I offered to someone else" as a currency

Isnt that my point? If everyone did this it would make the process much less stressful for everyone, including those who miss out.

Wouldn't it give you more peace of mind to know that you were offered a fair chance to increase your bid, and chose not to, rather than never knowing what the winning bid was?

 

[Teknobry]

Given the EA company gets a commission directly as a percentage of the sell price its in their own interests (as well as the sellers) to get the maximum sell price. An extra £10k or £20k could be worth hundreds to the agent and a thousand or more to the company itself. With house prices these days a £250k flat with 3% of the sell price in commission is £750. The agent could be in line for half that. If they manage to up the price to £275k that’s an extra £75 in the agents pocket. Sell four or five houses a week and that’s an extra £300 in your pocket every week, £1,500 a month. Of course they’re going to push the price as high as they can.

Think you need to check your maths, 3% of 250k isn't £750... It's £7,500!

 

[jaybee]

There's a thread on these forums about moving and some of what people go through. I'd advise you enter with caution. It could scare you off moving entirely!

THE NERVOUS WAIT TO EXCHANGE THREAD

 

[AnastieByte]

Sorry for the lack of replies I’ve been away all day.
An update.. so far.

The estate agent on him offering asking price, submitting the affordability paperwork and evidence of a mortgage offer. He then increased his offer to 10,000 over the asking price. Put it back to the seller. Even though the seller apparently had an offer of £25,000 over the asking price!

The estate agent than called him back and said as he is the only person to have submitted all the paperwork they accept his offer of £10,000 over the asking!

Watch this space.

 

[Rroff]

If you really liked one of the viewers that came, and they didn't quite get the top bid on a best and final offer process, wouldn't you go back to them and give them the information and see if they want another shot?

Doesn't change the money you get, but isn't it a nice thing to do?

My parents actually sold their place at a bit under the highest amount on offer - one of the viewers was a lovely young family with no messing about, had the money ready to go, etc. maybe a bit of sentimentality to it but I was there when they came around and they just felt like the perfect fit for the place. There was potentially another couple of buyers offering more but one was a right pain in the rear to deal with over anything - even the smallest thing they had 1000 questions.

 

[dlockers]

was a lovely young family

ah so sweet

had the money ready to go

makes the other point irrelevant lol.

 

[dlockers]

Sorry for the lack of replies I’ve been away all day.
An update.. so far.

The estate agent on him offering asking price, submitting the affordability paperwork and evidence of a mortgage offer. He then increased his offer to 10,000 over the asking price. Put it back to the seller. Even though the seller apparently had an offer of £25,000 over the asking price!

The estate agent than called him back and said as he is the only person to have submitted all the paperwork they accept his offer of £10,000 over the asking!

Watch this space.

Such BS lol.

 

[jaybee]

Sorry for the lack of replies I’ve been away all day.
An update.. so far.

The estate agent on him offering asking price, submitting the affordability paperwork and evidence of a mortgage offer. He then increased his offer to 10,000 over the asking price. Put it back to the seller. Even though the seller apparently had an offer of £25,000 over the asking price!

The estate agent than called him back and said as he is the only person to have submitted all the paperwork they accept his offer of £10,000 over the asking!

Watch this space.

Did you offer condolences for his loss? Of the 10k I mean. That behaviour clearly confirms it.

Someone over on Reddit posted a very similar story today. Basically a house had been on the market for like 2 years. Person offers asking and suddenly estate agent claims to have 2 other offers out of nowhere. Person says no they won't offer anymore. EA phones back next day and says the offer has been accepted.

That £25000 over asking offer never existed. This practice is illegal officially but hard to police so they continue to play these games.

 

[danlightbulb]

ah so sweet



makes the other point irrelevant lol.

Dlockers I'm going to assume that in real life you're a nice person. If selling your house you could get the same money but go about it two ways - a nice way that takes people along and is transparent with them, or an arsey way that causes people stress and upsets them, then surely you'd pick the nice way wouldn't you?

 

[dlockers]

Dlockers I'm going to assume that in real life you're a nice person. If selling your house you could get the same money but go about it two ways - a nice way that takes people along and is transparent with them, or an arsey way that causes people stress and upsets them, then surely you'd pick the nice way wouldn't you?

You are describing an auction but with more words. You are more than welcome to sell your house via auction.

 

[danlightbulb]

You are describing an auction but with more words. You are more than welcome to sell your house via auction.

You didn't really answer my question. Would you be happy if your agent used morally questionable behaviour under the banner of the terribly untransparent best and final offers system to sell your house? They are acting on your behalf, so their morally questionable behaviour becomes your morally questionable behaviour.

I know what I'm describing, sort of an auction but not really because after the offers stage I would negotiate directly with my preferred buyer.

We were talking about the kinds of stress that best and final causes and it doesn't necessarily get you the best price either. In fact I think my system is likely to get you more money.

 

[Macky]

We're in a position where we have multiple offers over asking price. We are simply going to go with who the estate agent believes to be the most reliable purchaser rather than asking them to increase their offers further for two reasons: a) we are happy with the sale price and don't want to play any games with buyers to eek out a couple of grand more. b) we've just been made aware of a house across the road which was down valued a large amount by the mortgage lender (possibly as a result of a bidding war) which has now made the sale fall apart. Clearly we don't want the same to happen to ours.

Well we had a few offers for a couple of k more but stuck to our plan and accepted the one we thought most reliable.

 

[Kenai]

Sorry for the lack of replies I’ve been away all day.
An update.. so far.

The estate agent on him offering asking price, submitting the affordability paperwork and evidence of a mortgage offer. He then increased his offer to 10,000 over the asking price. Put it back to the seller. Even though the seller apparently had an offer of £25,000 over the asking price!

The estate agent than called him back and said as he is the only person to have submitted all the paperwork they accept his offer of £10,000 over the asking!

Watch this space.

I bet they did, I doubt the £25,000 over offer even existed