Jump to content
House Price Crash Forum
Sign in to follow this  
Muskoka

Beat The Estate Agent - Maybe

Recommended Posts

Viewed a house where the estate agent has advertised the property on the usual websites, produced the usual sales leaflet to hand out BUT vendor hasn't signed up with agent yet? Presumptious or stupid of agent???

I've managed to contact vendor direct, does vendor have any liability towards EA? I wouldn't have thought so :rolleyes:

Edited by Muskoka

Share this post


Link to post
Share on other sites

If nothing has been signed then it ain't worth the paper it's printed on.

Personally I don't give a rats ass about EA's, I recently put a letter through someone's door to try and buy their house without any involvement of the agent they are using, it didn't work as they are in cuckoo land (2007 price) but that's not the point, I don't care if the agents details says "viewing strictly through agent".

EA's have no morals, should us buyers or sellers ?

Share this post


Link to post
Share on other sites

When vendor asked me how i knew property was coming on for sale, I advised err, its on Rightmove. Vendor was surprised when I advised been on Rightmove for couple of weeks but agents not allowing any viewings yet (I know the reason for delay, which is shortly to be resolved).

Share this post


Link to post
Share on other sites

This is quite a complex topic in they eyes of the law.

Contract law dictates that if no written agreement between Agent and client has been reached, then no financial liability can fall to the client, regardless of whether services are provided. In this case of course, the service is taking action to put the vendor in contact with a suitable buyer, resulting in the sale of the property.

However, there can exist a tacit agreement which will still hold water in court. If it can be shown that the vendor had a full understanding of the services being provided and had an understanding of the associated cost of those services, then the fee can still be demanded by the agent without a written agreement.

This comes into play regularly when one agent's contract comes to an end and another takes over. A buyer introduced by agent A, but who negotiates a purchase through Agent B, causes difficulty. Agency agreements are written not to overlap, however that doesn't automatically result in Agent B getting the fee. All the court will consider is which agent took 'action resulting in a sale'. It is the same for an agent working pre-contract.

On the subject of 'Beating the Estate Agent', many believe that they can see a sale board, or see a property on Rightmove, and then go knock on the door. In theory this would negate the contract because the agent did not directly put the buyer in contact with the seller. However, if the agent feels that it was the For-sale board or rightmove which created the buyer's interest then they have still 'taken action resulting in a sale'. After all, they put the board up.

It then remains for the buyer and/or seller to be dishonest about the nature of their meeting. If they had genuinely met in a pub and got talking about houses then no fee would ever be due. So if you're feeling dishonest then that should be your line: 'Met the guy in the pub' .

What do you gain though? Agency fees are, on average 1.75% in the UK. The thory is that you can negotiate the price down by some of this margin so that the buyer and seller effectively split the agent's cut between you. Split 50/50 this is 0.875% each. If a seller feels that this is worth having to do the remainder of the post sale work himself, then why did he employ an agent in the first place. If the offer is anything other than Asking Price - 0.875% then could the agent have negotiated him more money or found a better positioned buyer? Could the buyer have used the agent's market knowledge and willingness to secure the sale, to haggle the price much lower? By a margin of 0.875%? It ain't much.

Most importantly, if a stranger is sneeky enough to try to cheat the agents and come knocking at your door, is he the sort you want to trust your house move and financial future to?

All in all it doesn't do anyone much good. And if everyone does it, Agents will simply add clauses to their contracts to close the loop. They will also put their fees higher still. To compensate. They have mortgages too.

Btw. I'm not an agent....any more.

Share this post


Link to post
Share on other sites

If nothing has been signed then it ain't worth the paper it's printed on.

Personally I don't give a rats ass about EA's, I recently put a letter through someone's door to try and buy their house without any involvement of the agent they are using, it didn't work as they are in cuckoo land (2007 price) but that's not the point, I don't care if the agents details says "viewing strictly through agent".

EA's have no morals, should us buyers or sellers ?

I've thought of leafleting the road we currently rent on to see if anyone wants to sell. Not very novel - got the idea from the evil green agents sticking a letter through the door saying they had a cash buyer called Ben who wanted to buy.

What did the vendor say btw? Were they keen to talk to you direct w/o involving the agent?

Share this post


Link to post
Share on other sites

Well, property is for sale at 270K. Vendors (3 children) don't want the house hanging about. Vendors also happily admitted property wants totally gutting (nothing special,no upstairs loo, no gas to house, no central heating, etc, etc ex-council house semi). Offered 250K cash - exchange by xmas. Vendors declined. I'm stunned - cash buyer - no agent fees............ Is somebody really 'stupid' enough to pay over 250K when it wants realistically 30K worth of work doing (and we can do this work ourself & have costed it,not overcosted it), pay 3% stamp duty and then the cost of bringing the place up to date............I guess so..............What bloody house price crash... :(

Oh, and it was the vendor who told me they hadn't signed up with the agent yet though house advertised. Would have made no difference to me wether it was through agent or not - though I have little time for agents

Share this post


Link to post
Share on other sites

Well, I eventually did 'beat the estate agent'. Sale now agreed at my negotiated price (prior to property being available for viewings to all and sundry).....will be exchanged by Christmas .............and even better than that .......no estate agent involved! Bliss! Both vendor & I are happy with price/conditions/blah/blah :P:P

Edited by Muskoka

Share this post


Link to post
Share on other sites

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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 153 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.