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iLegallyBlonde

Paying The Estate Agent Wwyd ?

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Ok, we orginally went on the market with 2 agents so agreed 1.8%+VAT as there were two of them.

We dropped one agent and the other sold our house to their branch mortgage advisor.

They still want the 1.8%

We have said no, they've come back with 1.2+VAT

2 other local agents have said they will charge 1% or a flat £2000 fee

Can the mortgage advisor go to the other agent and still buy if we move the house ?

Would you risk another buyer coming along with the other agents ?

We can't even exchange before the end of January because of a planning issue that needs resolving so we have a bit of tme on our hands.

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Ok, we orginally went on the market with 2 agents so agreed 1.8%+VAT as there were two of them.

We dropped one agent and the other sold our house to their branch mortgage advisor.

They still want the 1.8%

We have said no, they've come back with 1.2+VAT

2 other local agents have said they will charge 1% or a flat £2000 fee

Can the mortgage advisor go to the other agent and still buy if we move the house ?

Would you risk another buyer coming along with the other agents ?

We can't even exchange before the end of January because of a planning issue that needs resolving so we have a bit of tme on our hands.

When you dropped the other agent did you discuss fees with the agent you kept on?

I'm guessing from the level of the flat fee you are selling around £200k - On that basis the difference between 1% and 1.2% is £400. If the mortgage advisor buys your property through another agent the original agent can still claim a fee as they introduced him/her to your property.

I'm a little confused - your agent has found you a buyer at a price presumably you are happy with and now there is a problem with the fee. Is it that you fel you shouldn't pay 1.8% because there was only 1 agent and not the original 2?

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When you dropped the other agent did you discuss fees with the agent you kept on?

I'm guessing from the level of the flat fee you are selling around £200k - On that basis the difference between 1% and 1.2% is £400. If the mortgage advisor buys your property through another agent the original agent can still claim a fee as they introduced him/her to your property.

I'm a little confused - your agent has found you a buyer at a price presumably you are happy with and now there is a problem with the fee. Is it that you fel you shouldn't pay 1.8% because there was only 1 agent and not the original 2?

Yes I feel that 1.8% when it's a sole agency is completely over the top when the other local agents are charging 1%

When they became sole agents I asked them about fees and was told, "oh don't worry about that we'll sort something out" to which I responded I'd like to sort something out right now and was told they would get back to me, which they didn't until I chased them yesterday.

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If 1% is the going rate for sole agency go back and tell them that is what you are prepared to pay. As you don't sound like you are in a mad rush and if they won't agree to 1% try one of the other agents but i'd leave the marketing til the beginning of January. Remind them that they had the opportunity to agree new terms when the other agent went.

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If 1% is the going rate for sole agency go back and tell them that is what you are prepared to pay. As you don't sound like you are in a mad rush and if they won't agree to 1% try one of the other agents but i'd leave the marketing til the beginning of January. Remind them that they had the opportunity to agree new terms when the other agent went.

This sounds like the best policy to me, but be careful how far you go, because it really isn't worth loosing a sale in the present climate over £400.

Can the mortgage advisor go to the other agent and still buy if we move the house ?

You cannot transfere your buyer to a new agent.

I was supposed to be buying a flat about 5 years ago and the vendor and EA fell out. The vendor wanted me to buy privately, avoiding the EA (and his fees).

My solicitor went mad when I told him, he said the vendor would be breaking the law, if the EA an prove that it was he (or his company) that introduced the buyer to the flat. Then the vendor must, by law pay the agents fee. This can even be when the contract expires, if the EA can prove the buyer saw their 'for sale' sign outside the property. In this case the EA had taken me to view the place and had correspondance to and from myself and the buyer. My solicitor advised me that he would not work on this under those circumstances and advised me to do the same, which I did.

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The fees at 1.2% of £249k are £3520. so we're talking over a grands difference between Dixons and the next EA in town.

Having agreed to drop £65k compared to what next door (smaller house) sold at, I've got to scrape back every penny I can, I know it sounds tight but I do begrudge them every penny.

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Spot on LG - couldn't agree more!

Yes, the whole point of a EA is to introduce a buyer, and they deserve (reasonable) payment for a job well done. My Dad's an EA and the number of times people try to negotiate direct with the seller once he's already spend money on marketing, and introduced someone (as a direct result of his hard work) is appalling. He doesn't charge a fee to be on his books - so spends money on marketing these places, and then people begrudge the fee. Where on earth are EA's supposed to get the money to market your house if you don't pay them?!

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Yes, the whole point of a EA is to introduce a buyer, and they deserve (reasonable) payment for a job well done. My Dad's an EA and the number of times people try to negotiate direct with the seller once he's already spend money on marketing, and introduced someone (as a direct result of his hard work) is appalling. He doesn't charge a fee to be on his books - so spends money on marketing these places, and then people begrudge the fee. Where on earth are EA's supposed to get the money to market your house if you don't pay them?!

IMHO, the amount fee should what the Vendor values the EA's service to be worth. The amount of time & effort put in by the EA is not relevant.

Problems can arise when local EAs form a cartel (real or virtual). So if all EAs charge (say) 1%, then offering £100 is not likely to get anywhere.

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IMHO, the amount fee should what the Vendor values the EA's service to be worth. The amount of time & effort put in by the EA is not relevant.

Problems can arise when local EAs form a cartel (real or virtual). So if all EAs charge (say) 1%, then offering £100 is not likely to get anywhere.

Would you happily do a job, then allow whoever you'd done the job for to decide how much to pay you after the fact? Is that what you're suggesting?! :lol:

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IMHO, the amount fee should what the Vendor values the EA's service to be worth. The amount of time & effort put in by the EA is not relevant.

Problems can arise when local EAs form a cartel (real or virtual). So if all EAs charge (say) 1%, then offering £100 is not likely to get anywhere.

You are joking, right?

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Would you happily do a job, then allow whoever you'd done the job for to decide how much to pay you after the fact? Is that what you're suggesting?! :lol:

No, the fee is fixed (and agreed) at the outset.

I used to charge by the hour (and still do for certain clients), but most of my clients are on a Fixed Fee basis.

How would the seller value the EA's services?

In most areas - i accept not all - competition is far too fierce for a cartel to work.

Yes, Pricing is the difficult part.

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The other problem being EA's need to cover the costs of people who market their homes and change their minds/pull out etc so no fee is paid. If there was an initial fee to cover basic marketing costs then i'm sure fees would come down.

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The other problem being EA's need to cover the costs of people who market their homes and change their minds/pull out etc so no fee is paid. If there was an initial fee to cover basic marketing costs then i'm sure fees would come down.

It is not uncommon for there to be separate marketing budget for the more expensive properties - but still on a No Sale, No Fee basis.

I am not sure how popular this would be the average Vendor?

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The fees at 1.2% of £249k are £3520. so we're talking over a grands difference between Dixons and the next EA in town.

Having agreed to drop £65k compared to what next door (smaller house) sold at, I've got to scrape back every penny I can, I know it sounds tight but I do begrudge them every penny.

Well you could always pay for a virtual tour, floor plan, colour brochures, adverts in the paper etc and sell it yourself.

People like you make me smile. You signed a contract and now you want to welsh on the deal. I can tell you EAs have no compunction chasing their fees through the courts.

If you didn't want two agents selling it, why instruct two. The phrase have your cake and eat it leap to mind. Do you think it is the estate agent's fault you are not getting a higher price? If so, call the deal off and give it to another agent at a higher price.

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Well you could always pay for a virtual tour, floor plan, colour brochures, adverts in the paper etc and sell it yourself.

People like you make me smile. You signed a contract and now you want to welsh on the deal. I can tell you EAs have no compunction chasing their fees through the courts.

If you didn't want two agents selling it, why instruct two. The phrase have your cake and eat it leap to mind. Do you think it is the estate agent's fault you are not getting a higher price? If so, call the deal off and give it to another agent at a higher price.

No you're completely missing the point, I would never do that, they changed the terms by becoming the sole agent and didn't give me a price for the job that they would do. Now they think they have me by the short and curlies they think they can charge me .2% more than every one else in the town.

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I know it sounds tight but I do begrudge them every penny.

BRAVO!!!

Whether your right or wrong over his dispute, you certainly have my vote with this statement.

VULTURES!

OPEN QUESTION PEOPLE?

If an EA puts you onto a seller and they agree a price - do you then pay the EA? Or do you have to pay them AFTER the completion date?

Reason I ask - I was just thinking there that it could be that the EA gets an employee to 'pretend' to buy the property - get the fees off the seller and then pull out. The EA and Employeethen go on the piss for weeks?

OR AM I JUST BEING A TW*T? :)

Edited by teddyboy

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BRAVO!!!

Whether your right or wrong over his dispute, you certainly have my vote with this statement.

VULTURES!

OPEN QUESTION PEOPLE?

If an EA puts you onto a seller and they agree a price - do you then pay the EA? Or do you have to pay them AFTER the completion date?

Reason I ask - I was just thinking there that it could be that the EA gets an employee to 'pretend' to buy the property - get the fees off the seller and then pull out. The EA and Employeethen go on the piss for weeks?

OR AM I JUST BEING A TW*T? :)

No you pay at exchange of contracts so it wouldn't be worth their while to mess me about, it had occurred to me though that they are breaking every law in the book by not agreeing their fees up front.

I will win this one, they haven't a leg to stand on

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No you're completely missing the point, I would never do that, they changed the terms by becoming the sole agent and didn't give me a price for the job that they would do. Now they think they have me by the short and curlies they think they can charge me .2% more than every one else in the town.

I am playing devil's advocate here because I hate the w@nkers like no other.

But you said:

"Ok, we orginally went on the market with 2 agents so agreed 1.8%+VAT as there were two of them.

We dropped one agent and the other sold our house to their branch mortgage advisor.

They still want the 1.8%"

As I read that, YOU changed the terms and made them the sole agent. They did not change the terms. After a period of joint agency where they have risked their money - advertising etc in competition with another agent - taking a very real risk of losing money on the deal - for an increased reward - then you change the rules. They would probably feel that, at that point in time, everyone worth marketing to had already seen the property details, so it was going to be an uphill struggle.

I think you have been luck to get them to accept any drop. I'd take what they have offered.

I do have some sympathy. Before you get a sale you pray the agent's doing the job. Ring them up every few weeks 'when are you putting in the paper again etc.' But, when the deal is done, don't we begrudge them their commission.

Yet if an agent came up to you and said he'd sell your house on a cost-plus basis - you would tell him to get lost. We want them to risk their money but begrudge them their commission.

Having said that, I think more people would be happy paying their commission if they weren't such complete tossers.

We'll give you feedback on every viewing. Yeah right.

We'll progress chase your sale through. Yeah right.

Total w@nkers the lot of them.

No you pay at exchange of contracts so it wouldn't be worth their while to mess me about, it had occurred to me though that they are breaking every law in the book by not agreeing their fees up front.

I will win this one, they haven't a leg to stand on

You become liable at exchange of contracts though normally agents are happy to accept payment at completion. Are you saying you didn't sign a contract?

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I'm spending far too much time on here, not sure it's doing my blood pressure any good.

But yes there's no contract, the first contract with the 2 agents, neither of which even did a viewing - sent out details but not a sausage - got torn up and the house taken off the market. A week later Dixons - the estate agents called me up asking if I'd consider dropping the price to under £249k and BINGO their mortgage advisor offers the asking price - see why I'm a little peeved at being given the orginal 1.8% bill.

I'll pay anyone a fair price for a fair's day's work but I know i'm being shafted and i'm not paying £5k for the pleasure.

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I know i'm being shafted and i'm not paying £5k for the pleasure.

I assume that you instructed the agents in the hope that they would sell your property, yes? Well how do you work out that you are being shafted then when they have got you a buyer?

It comes down to effective cause of introduction- your buyer obviously was introduced to your property through this agent, so if he goes on to purchase your property then you have to pay up, simple as that!

You have got two choices, find yourself another buyer, or stop being such a tightwad and accept the fact that you have entered into a contract- your agents have fullfilled their part of the deal!

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I'm spending far too much time on here, not sure it's doing my blood pressure any good.

But yes there's no contract, the first contract with the 2 agents, neither of which even did a viewing - sent out details but not a sausage - got torn up and the house taken off the market. A week later Dixons - the estate agents called me up asking if I'd consider dropping the price to under £249k and BINGO their mortgage advisor offers the asking price - see why I'm a little peeved at being given the orginal 1.8% bill.

I'll pay anyone a fair price for a fair's day's work but I know i'm being shafted and i'm not paying £5k for the pleasure.

Did you know it was their mortgage advisor when the offer was put in? If not you might have a case. If you did and you accepted the offer then I think you have to either accept it or pull out of the deal on the basis that you do not think they were acting in your interests.

Also was it a fair deal on the basis of what else you are seeing around. If it was then I would think they have got you a buyer whatever the source. OK so they got lucky and found an easy buyer but that is just the nature of business. I see why your peeved (and I would be too), but I think you need to let go of it and be rational about the market.

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  • 302 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% +
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      • Even
      • up 2.5%
      • up 5%



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