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TheCountOfNowhere

Is It Estate Agent Fraud

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I've viewed a couple of houses recently. If you look at the land registry sold prices for the houses and that of similar house nearby then quite clearly the houses are about £200K over valued!!!

So I was thinking this evening, at what time does it stop being fair game to push the price and sell something to a mug punter and when does it become out and out fraud?

Most of the EA owners must know what the real values are/should be but they are still pushing stuff thats way way way over-priced.

if they knowingly sell something to someone for £200K more than any reasonable person would pay is that fair game or is that fraud ?

We're not talking taking someone for £5K or £10K here, it's 10's of thousands.

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Fair game imo, the buyer is responsible for paying the right price.

I have a ring with a glass stone in it that cost me £5.

If I tell you that it is a 2k diamond and take £50,000 off you for it then I am at fault and that is fraud.

If I tell you that it is a glass stone, but a very pretty one, and that I want £50,000 for it and you pay me then it is your fault for being dense.

Not right on any scale of morality but since when did that mean anything in terms of legality?

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I've viewed a couple of houses recently. If you look at the land registry sold prices for the houses and that of similar house nearby then quite clearly the houses are about £200K over valued!!!

So I was thinking this evening, at what time does it stop being fair game to push the price and sell something to a mug punter and when does it become out and out fraud?

Most of the EA owners must know what the real values are/should be but they are still pushing stuff thats way way way over-priced.

if they knowingly sell something to someone for £200K more than any reasonable person would pay is that fair game or is that fraud ?

We're not talking taking someone for £5K or £10K here, it's 10's of thousands.

Fraud is material gain through mis-representation. What is it that is being mis-represented?

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I don't believe that you have given us enough information to determine if the estate agent in engaging in fraud. The key is: what has the estate told you about the property and the price? Did the estate agent tell you that this is the lowest priced property of its size in the neighborhood?

If you are interested in the property and thinking about buying (you must be or you wouldn't be looking at the property), don't be afraid to ask the estate agent any questions you may have about price, amenities, etc. If you are concerned about the asking price being too high, I would ask the estate agent what comparable properties in the immediate area have SOLD for. Not what sellers are asking, but what they have SOLD for. If there is a large discrepancy, there could be only two legit reasons, location and amenities.

Before I made an offer, I would ask the estate agent for comparable SOLD listings in the immediate area. If I didn't get them, I wouldn't make any offers.

Good luck.

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Fraud is material gain through mis-representation. What is it that is being mis-represented?

The price of an objected, i.e. a house.

If you compare a 2nd hand house to a 2nd hand car....there are all sorts of stigmas attached to the miss selling of cars, if someone clocks a car and trys to sell it on to make a profit then will be jailed. Not so with houses, it seems it's acceptable to try and cover up serious problems with houses then try and flog them on for £200K more than the actual worth. Maybe it's time a dim view was taken on this.

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I don't believe that you have given us enough information to determine if the estate agent in engaging in fraud.

I'm talking generally here.

Im sure an estate agent would be patted himself on the back if he can sell a house for 30% more than the market value. However, if they knowingly do so and take advantage of someone gullible to do so, at what point does it become fraud, or is it just acceptable ?

Edited by TheCountOfNowhere

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If there's a mortgage involved, some sort of official valuation will be done. I'm not sure an agent would be able to flog a place for a price that was totally anomalous in that circumstance. Of course, in general terms houses are a rip off, but unfortunately that's what we're here for.

Am in Scotland at the moment; plenty of listings for sale are pushed as '£x under the home valuation report'. It's just an attempt to rig the market.

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I'm talking generally here.

Im sure an estate agent would be patted himself on the back if he can sell a house for 30% more than the market value. However, if they knowingly do so and take advantage of someone gullible to do so, at what point does it become fraud, or is it just acceptable ?

As long as the estate agent is honest, and provides all relevant facts that they themselves know of, then it isnt fraud. Indeed they have a duty to get as much money as possible for the seller.

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The price of an objected, i.e. a house.

If you compare a 2nd hand house to a 2nd hand car....there are all sorts of stigmas attached to the miss selling of cars, if someone clocks a car and trys to sell it on to make a profit then will be jailed. Not so with houses, it seems it's acceptable to try and cover up serious problems with houses then try and flog them on for £200K more than the actual worth. Maybe it's time a dim view was taken on this.

Actually that is fraud and you could take the seller to court.

Selling a house that is known to have a serious fault without notifying the buyer is fraud. It is the seller comitting the crime.

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The spread between asking and selling is definitely widening. Possibly the best formula is DCLG/ Rightmove asking. In August this stood at 204 /232 =88%.

Comparisons with Land Registry and Haliwide probably not relevant as one million pound properties in the former are excluded, and the latter is mortgaged properties.

I suppose if 90% of transcations are the equity rich playing swapsy, it is in their interests to exchangs properties at inflated levels to protect their equity. Just a f**k for those that have to stump up real money.

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  • 284 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%



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