Jump to content
House Price Crash Forum

Cumbrian Estate Agent Sends Bill To Family After They Refuse To Drop House Price


Recommended Posts

0
HOLA441
AN ESTATE agent told a west Cumbrian family it would no longer sell their home unless they dropped the price – then sent them a bill for nearly £500.

Shaun and Katrina Ritchie, of Derwent Bank, in Seaton, Workington, are furious. They say they are being asked to pay for a service they have not had and are now threatening to take the case to the national watchdog.

The couple put their three-bedroomed semi on the market with the Cumberland Estate Agency for £155,000 in 2008.

They have since dropped the price to £145,000.

Earlier this month the Cumberland recommended they cut it again to between £135,000 and £139,950. When they refused, the firm said it would no longer market the property.

The estate agent then sent an invoice for £360 for preparation of a home information pack (HIP) plus a £117.50 administration fee.

Mr Ritchie, 41, a railwayman, said: “We always knew we had to pay for the HIP but only when the house was sold. They’re asking me to pay for a service I haven’t had.

Full story:

http://www.newsandstar.co.uk/news/cumbrian-estate-agent-sends-bill-to-family-after-they-refuse-to-drop-house-price-1.762426?referrerPath=home

Link to comment
Share on other sites

1
HOLA442

That's the way you do it.

Nick Elgey, managing director of the Cumberland Estate Agency, has promised to investigate.

He said: “We are constantly reviewing stock. We have some that has been on the market for more than two years.

“We are trying to work with sellers to make sure they are in tune with the market place. We regularly review prices to see if there is a better chance of a sale and we have been parting company with some stock.

“People have the opportunity to go to other estate agents if they are not in agreement with what we believe is an appropriate price. The market is a buyers’ market and is extremely price sensitive.”

Official figures from the Land Registry show that house prices in Cumbria have fallen by 9.7 per cent since the market peaked in May 2008.

Mr Elgey says there has been an influx of properties onto the market since HIPs were abolished in May.

This, coupled, with uncertainty about government spending cuts, is also depressing the market.

He added: “We are in for a challenging autumn. People don’t know yet what the impact of the austerity measures and spending cuts is going to do them. That is having a numbing effect.

“What you can say is that any property will sell in any market – at the right price.”

Link to comment
Share on other sites

2
HOLA443
3
HOLA444
4
HOLA445
5
HOLA446
6
HOLA447

Mr Ritchie, 41, a railwayman, said: “We always knew we had to pay for the HIP but only when the house was sold.

Ooohh! Now we learn that estate agents were not passing on HIP costs until completion!!!

What a predicament! :D

I wonder how many other estate agents tried to give unreasonable sellers a free ride this way and how long it went on for.

Link to comment
Share on other sites

7
HOLA448
8
HOLA449
9
HOLA4410

If the ombudsman sides with the seller on this one, then I guess the result will be that EAs start to charge their fees up front, or at least insert clauses into contracts giving them the right to do so if a seller rejects their advice.

yes this will be great news if the estate agen charged if the seller rejects their advice,,

maybe it could be a start for EA to start pricing sensible

Link to comment
Share on other sites

10
HOLA4411
11
HOLA4412
12
HOLA4413

Interesting article MT.

Estate agents will just have to become tougher with these sellers who are asking too much for their properties, if they hope to carry on making a living out of selling property.

I suspect a problem that a large number of EAs will have is that they have simply, sometimes ludicrously, over-valued property in order to appeal to the vanity and greed of sellers to get the property on their books in the first place.

How they go about going back to those sellers and getting them to drop the asking price by anything, let alone by a substantial amount, is an interesting dilemma for them.

I suspect however that many EAs are still in denial about the housing market.

Link to comment
Share on other sites

13
HOLA4414
14
HOLA4415
15
HOLA4416
16
HOLA4417

Almost certainly the contract said something like, on completion or after 6 months whichever is the sooner.

No EA's will have contract that pay for the HIP for houses that don't sell

Link to comment
Share on other sites

17
HOLA4418
18
HOLA4419
19
HOLA4420

It all boils down to the contract between the EA and the would-be seller.

I bet it is crystal clear in the contract, when and if the seller should pay for the HIP.

Edit: One thought though, I wonder what obligation the contract places on the EA to actively market the property.

Edited by happy_renting
Link to comment
Share on other sites

20
HOLA4421

I know Cumbria well, and they are coming down there,

although i do not know this area well, but i would think it is only worth 75k

good news all the same though,

good find MT

I know Cumbria too and yes something around 75K for Seaton is probably being overly generous. There are alot of very nice properties in the area that command a premium - this does not look like it is one of them....

Link to comment
Share on other sites

21
HOLA4422

I notice in the article that the hapless vendors claim to have spent £4000 on kitchen equipment. From the look of the picture on Rightmove, I'm struggling to see where all the money went.

Besides, "equipment" sounds like things that put in to make the place look nice and then taken away when the family move out.

From the picture, they must have put all the expensive "equipment" inside those poor quality looking cupboards.

Link to comment
Share on other sites

22
HOLA4423

It all boils down to the contract between the EA and the would-be seller.

I bet it is crystal clear in the contract, when and if the seller should pay for the HIP.

Edit: One thought though, I wonder what obligation the contract places on the EA to actively market the property.

The agent values the house before taking it on, so it is up to them to decide if it will fly. If they think the owner is being unrealistic, they should invite them to find someone else prepared to put it on the market.

Having put it on the market, only for it not to sell, and then blaming the seller is sour grapes. Hopefully they won't have a leg to stand on, but agents are usually teflon coated...

Link to comment
Share on other sites

23
HOLA4424
24
HOLA4425

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
  • Recently Browsing   0 members

    • No registered users viewing this page.




×
×
  • Create New...

Important Information