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What Is This Sale By Tender Marlarky?

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Noticed two properties one in Sutton and the other in Walthamstow listed at 500k

http://www.rightmove.co.uk/property-for-sale/property-44659565.

htmlhttp://www.zoopla.co.uk/for-sale/details/31671935?

search_identifier=2e5462ddfddbf589fd4f5fb390c9b03c

Both these properties state they are for sale by tender. This apparently means the purchaser has to pay 2% + Vat of the sale price to secure the house in additional to all the other ancillary costs. Therefore if they go for a bid over 4% stamp threshold the transaction costs are starting to really sting. This of course is for two nicely presented, but basically two end terrace/semis in outer London.

Is this the way it is going?

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Truly crazy! I had always assumed the tender thing was the EA basically saying 'this is going to be so popular that we know it is going to sealed bids, so get your best offer in now'.

I didn't know that they had the bare-faced cheek to charge for the privilege! Does this mean that the vendor pays a reduced fee?

The second one isn't even in Sutton-proper, it is Wallington. I didn't even know we had got to £500k for a terraced house in that area yet. I am afraid to look any more!

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Truly crazy! I had always assumed the tender thing was the EA basically saying 'this is going to be so popular that we know it is going to sealed bids, so get your best offer in now'.

I didn't know that they had the bare-faced cheek to charge for the privilege! Does this mean that the vendor pays a reduced fee?

The second one isn't even in Sutton-proper, it is Wallington. I didn't even know we had got to £500k for a terraced house in that area yet. I am afraid to look any more!

Almost every property I see newly advertised in the E17, E18 or E11 (the Walthamstow/South Woodford/Wanstead/Leytonstone triangle) which is going bonkers is now a sale to tender.

Look at this ground floor flat in a pretty dull council looking block in South Woodford with no parking on for £230k - sale by tender. Its not even the nice bit - its near the local tip.

http://www.rightmove.co.uk/property-for-sale/property-29114751.html

Or this two bed flat in Walthamstow on for £270k.

http://www.rightmove.co.uk/property-for-sale/property-29023053.html

And they will sell almost immediately I have no doubt for asking price - the estate agents make a nice profit for doing basically nothing.

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I also nearly fell off my chair when I saw this text in the advert for the second flat.

"E17" has it all, no wonder we are the TOP place in the country that everyone wants to buy in!"

Who needs Richmond Park or Belgravia - when you can live in Walthamstow! :lol: E17 certainly has it all - gangs, shootings, drug dealers and an Asda!

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I also nearly fell off my chair when I saw this text in the advert for the second flat.

"E17" has it all, no wonder we are the TOP place in the country that everyone wants to buy in!"

Who needs Richmond Park or Belgravia - when you can live in Walthamstow! :lol: E17 certainly has it all - gangs, shootings, drug dealers and an Asda!

Baby if you've got to go away

I don't think

I can take the pain

Won't you stay another day

Oh don't leave me alone like this

Don't say it's the final kiss

Won't you stay another day

Don't you know

We've come too far now

Just to go

And try to throw it all away

Thought I heard you say

You love me

That your love was gonna be here to stay

I've only just begun

To know you

All I can say is

Won't you stay just one more day

Baby if you've got to go away

I don't think

I can take the pain

Won't you stay another day

Oh don't leave me alone like this

Don't say it's the final kiss

Won't you stay another day

I touch your face while you are sleeping

And hold your hand

Don't understand what's going on

Good times we had return

To haunt me

Though it's for you

All that I do seem to be wrong

Baby if you've got to go away

I don't think

I can take the pain

Won't you stay another day

Oh don't leave me alone like this

Won't you stay another day

e17 is such a romantic place , no wonder it is THE place to live :lol:

that song could almost be written by bankers about the HPI boom :D

Edited by longgone

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Noticed two properties one in Sutton and the other in Walthamstow listed at 500k

http://www.rightmove.co.uk/property-for-sale/property-44659565.

htmlhttp://www.zoopla.co.uk/for-sale/details/31671935?

search_identifier=2e5462ddfddbf589fd4f5fb390c9b03c

Both these properties state they are for sale by tender. This apparently means the purchaser has to pay 2% + Vat of the sale price to secure the house in additional to all the other ancillary costs. Therefore if they go for a bid over 4% stamp threshold the transaction costs are starting to really sting. This of course is for two nicely presented, but basically two end terrace/semis in outer London.

Is this the way it is going?

Seems to be the way it is going in NE London. We put in a bid on a property in S. Woodford in December but were outbid. At just under £800k, the fees and stamp duty were going to total over £50k!

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And they will sell almost immediately I have no doubt for asking price - the estate agents make a nice profit for doing basically nothing.

I just don't understand who benefits apart from the EA. If I had a flat that was so sought after that it was going to sell on the first day on the market, I think I would want to make the EA actually reduce their fee to me, not keep it the same and charge the buyer as well!

It is just another reason that I don't understand why EAs still exist and have suvh a stranglehold on the market. In a crazy bubble cycle like this, they don't add any value whatsoever over someone putting up a homemade sign outside and advertising on Rightmove themselves.

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I also nearly fell off my chair when I saw this text in the advert for the second flat.

"E17" has it all, no wonder we are the TOP place in the country that everyone wants to buy in!"

Who needs Richmond Park or Belgravia - when you can live in Walthamstow! :lol: E17 certainly has it all - gangs, shootings, drug dealers and an Asda!

Ah, but Morrisons, Sainsbury's and Next are only a short drive away.... It must be impossible to get that anywhere else, surely?

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I just don't understand who benefits apart from the EA. If I had a flat that was so sought after that it was going to sell on the first day on the market, I think I would want to make the EA actually reduce their fee to me, not keep it the same and charge the buyer as well!

It is just another reason that I don't understand why EAs still exist and have suvh a stranglehold on the market. In a crazy bubble cycle like this, they don't add any value whatsoever over someone putting up a homemade sign outside and advertising on Rightmove themselves.

if you feel so strongly about agents , why not start your own service ?

Edited by longgone

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if you fell so strongly about agents , why not start your own service ?

Partly because I'd be no good at it, but mainly because the EAs have such a stranglehold. Everyone turns their nose up if they see one of those 'House Network' signs which means the vendor is going it alone. I can see why they think that, but there isn't really any reason to when you think about it.

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Partly because I'd be no good at it, but mainly because the EAs have such a stranglehold. Everyone turns their nose up if they see one of those 'House Network' signs which means the vendor is going it alone. I can see why they think that, but there isn't really any reason to when you think about it.

this will cheer you up :lol:

http://www.zoopla.co.uk/for-sale/details/31746983?search_identifier=955d599fcab4cb675c4b1e109d79c3db

just think if i invested my savings i could of had free money for feck all.

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EAs are parasites, but their business model works very well with obscene house prices. If they are taking 1, 2% whatever it is, of £500k, then that's mega-profit for them, plus on the other side of the coin, marketing your property badly (what's wrong with it, why no EA?) can knock 20% off the price.

So as far as the seller is concerned, the EA is good for them.

Letting agents are probably a different story.

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this will cheer you up :lol:

http://www.zoopla.co.uk/for-sale/details/31746983?search_identifier=955d599fcab4cb675c4b1e109d79c3db

just think if i invested my savings i could of had free money for feck all.

I cannot believe that is sold already! There I was on the other thread saying that it isa 'Help to Buy classic', that will no doubt sell for £599,999 and it sells within a couple of days, presumably for much closer to the asking price than that.

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EAs are parasites, but their business model works very well with obscene house prices. If they are taking 1, 2% whatever it is, of £500k, then that's mega-profit for them, plus on the other side of the coin, marketing your property badly (what's wrong with it, why no EA?) can knock 20% off the price.

So as far as the seller is concerned, the EA is good for them.

Letting agents are probably a different story.

Indeed. The thing that annoys me is that it is a win-win situation for them already and now they are trying to take even more with this type of scheme.

House prices have quadrupled in a lot of areas over the past 15 years and I haven't seen EAs reduce their % much. I can't think of any other business where the price of their product/service has gone up that much, even greedy lawyers would be jealous. On top of that, most houses have become easier to sell, so they can save on overheads with less staff and glossy brochures etc.

Do they really need any more money?

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I suspect there are just more EAs now, and in expensive locations, they are the only business in some places, all those rents and rates and so on do eat into profit a bit. Ultimately if being an EA is excessively profitable, then more EAs will open up, spreading the pie that much thinner, with no benefit to the consumer as more is blown on overheads.

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