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A_Landlord

Ea Not Passing On Offer To Owner

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A house that I am interested in is on for £725k, but the last similar house in street sold for £655k back in September 2007.

I put an offer around 20% (£525k) below the Sept 2007 price, which I found had been rejected by the EA and not passed on to the owner. I am in rented accommodation so nothing to sell and a good deposit so no problem on mortgage so an easy sale. The house came on the mnarket in February and it has already had 2 sales break down somewhare along the chain.

I am guessing the EA valued it at £725k to get the work and they cannot reduce it by £150k to £200k without looking incompetent. Or, they have had instructions from the owner that they think their house is worth £700k and they are holding out for it.

The house is vacant, so I cannot drop a letter around as there was a mountain of post when I viewed so probably any letter will not get read.

So how would you play it with the EA if they are not passing on offers and I have little confidence that they are even talking about us as potential buyers to the owners as they see us as chancers?

1. Wait, do nothing and let the market fall further.

2. Ask their neighbour for an address for the owner and write to them - although I wouldn't give out a neighbours address to a stranger so don't think I'll have any luck.

Any other tips to help this stand-off?

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Did you send the offer in writing ? Agent is legally bound to pass on then I think.

No, just verbal.

I was thinking about waiting for the further drops the monthly Nationwide house price figures show in a day or two, and then sending in a letter.

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From what i know even verbal offers must be past on by law.

Why buy and not just let the trend be your friend or do you think prices are close to the bottom.

my guess is the value will go down much faster then any rent coming in so don't rush in even if your like me and like to get on with things.

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A house that I am interested in is on for £725k, but the last similar house in street sold for £655k back in September 2007.

I put an offer around 20% (£525k) below the Sept 2007 price, which I found had been rejected by the EA and not passed on to the owner. I am in rented accommodation so nothing to sell and a good deposit so no problem on mortgage so an easy sale. The house came on the mnarket in February and it has already had 2 sales break down somewhare along the chain.

I am guessing the EA valued it at £725k to get the work and they cannot reduce it by £150k to £200k without looking incompetent. Or, they have had instructions from the owner that they think their house is worth £700k and they are holding out for it.

The house is vacant, so I cannot drop a letter around as there was a mountain of post when I viewed so probably any letter will not get read.

So how would you play it with the EA if they are not passing on offers and I have little confidence that they are even talking about us as potential buyers to the owners as they see us as chancers?

1. Wait, do nothing and let the market fall further.

2. Ask their neighbour for an address for the owner and write to them - although I wouldn't give out a neighbours address to a stranger so don't think I'll have any luck.

Any other tips to help this stand-off?

Did you send the offer in writing ? Agent is legally bound to pass on then I think.

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I think technically they have to pass on every offer.

Put it in writing and CC it to the address.

Put in

"As previously discussed on LONGTIMEAGODATE by telephone I make the following offer"

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From what i know even verbal offers must be past on by law.

Yes.

The agent is under no obligation to pass on the offer, as the vendor may have agreed only to consider offers over £x. If your offer is less than £x, then they are happy for the agent to dismiss it straight away.

Yes again!

The agent has a statutory duty to submit the offer in writing to the Vendor unless authorised in writing not to do so by the Vendor.

Estate Agents Act 1979 at the Office of Fair Trading

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The agent is under no obligation to pass on the offer, as the vendor may have agreed only to consider offers over £x. If your offer is less than £x, then they are happy for the agent to dismiss it straight away.

There isn't a great deal you could do, although it might be worth writing down your verbal offer and sending a copy to the agent (put another copy through the vendor's letterbox - they may check the post every so often). This will at least remind the agent of your offer, and you have the opportunity to lay out your qualities (ready to move etc.).

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Why not put it in writing and CC it to the address. Helpfully, I have some wording for you to use below;

Hi,

I'd like to buy your property for £xxx,000. This offer reduces in line with the Halifax index monthly.

Regards

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What evidence do you have that the ea didnt pass on the offer? If the ea has you down as a timewaster then they will probably not bother to get back to you either way (its not the way I would do it but..)

My guess is the vendor has a bottom line at which they have instructed that agent not to inform them (not uncommon).

The law states ALL offers must be put forward in writing (unless specifically instructed to do otherwise). That aside most agents are happy to put low offers forward as it helps to prepare the vendor for a more realistic price, or at least can lead to a price drop.

Edited by yourfriendlyestateagent

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I recently made an offer on some land (40% of asking price), just went to the owner direct. I don't see the point of going through a middle man who will only mislead both parties.

The buyer has the contract with the EA, I don't.

VMR.

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What evidence do you have that the ea didnt pass on the offer? If the ea has you down as a timewaster then they will probably not bother to get back to you either way (its not the way I would do it but..)

My guess is the vendor has a bottom line at which they have instructed that agent not to inform them (not uncommon).

The law states ALL offers must be put forward in writing (unless specifically instructed to do otherwise). That aside most agents are happy to put low offers forward as it helps to prepare the vendor for a more realistic price, or at least can lead to a price drop.

When I made the offer the EA said that he thought the owners would not accept it. 3 days later I phoned back as I hadn't heard anything and asked if the offer had been accepted. I was told that he thought he made it clear when we first spoke that the offer would not be accepted and I asked had he even put forward to the owners and he said no.

I have had some bad experience with this EA in the past - when the market was hot 18months ago they said to me that if we used them to sell our house, they would make sure we would see any new properties coming on the market first. We didn't choose them and true to their word, a lot of their houses were under offer before reaching Rightmove/the papers.

I'll put an offer in writing to them in a week or so and follow it up with a phone call to find out if they have been instructed by the owners of a price they are not prepared to go under.

As we are now in the holiday season the number of buyers would be naturally reduced in a normal market anyway. I guess the next shock to the sellers will be if there is still no interest in Sept/Oct - the period for moving in before Christmas. I'm guessing the real cold feet amongst the sellers will be in Nov onwards as they would still have falling prices an very few buyers around until Feb.

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It is worth looking at the Ombudsman for Estate Agents (OEA) website and downloading their Code of Practice for Estate Agents: http://www.oea.co.uk/

If you think you are getting a raw deal from the Estate Agent it is worth lodging a complaint with the OEA (copy to vendor) who then have to investigate. Chances of getting any redress or satisfactory response is probably somewhat low but at least the OEA has to invesigate and the Estate Agent has to set aside time and effort to respond to the OEA. Obviously, if at all possible it is useful to start communicating with the vendors directly to let them know what is happening and that the Estate Agent is turning away potential buyers during a time when prices are falling, Rightmove is stating that for every buyer in the market there are 15 properties for sale, mortgage approvals have collapsed by nearly 70%, transactions arte down by over 50%, etc., etc. In such a context is it wise to turn away any potential buyer, no matter how low their initial offer - of course not!!!! There are so many naieve Estate Agents out there still operating with sales strategies that are only appropriate for rising and booming markets - due their lack of experience of falling markets. These are the Estate Agents that will go bust first.

Another website worth looking at is the following in regards complaining about Estate Agents and also clarifing what their legal duties and responsibilities are:

http://www.berr.gov.uk/consumers/fact-sheets/page38024.html

Some new legal; duties come into effect from October - re: record keeping, etc. The October developments will make it even more effective to submit offers in writing (always subject to survey and contract - and good to also state that the offer is subject to the property being taken off the market immediately). If you then need to lodge a complaint to the OEA about offers not being passed on the EA will have to kept your offer on record as well as their written response to your offer.

If Estate Agents aren't 'playing ball' they always become very nervous if you calmly say - "well, I guess I'll have to deal with the vendors directly".

Edited by Alfie Moon

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I think technically they have to pass on every offer.

Put it in writing and CC it to the address.

For good measure, get the land registry data on the property and send a cc. to the mortgage company, just in case!

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If the vendor had said " i dont want to get harrassed by any offers under £550k" then the ea doesnt have to pass this on obviously which is what the arrangement is often.

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If the vendor had said " i dont want to get harrassed by any offers under £550k" then the ea doesnt have to pass this on obviously which is what the arrangement is often.

In my previous reply on this thread I mentioned that there are large numbers of naieve Estate Agents that are still operating 'sales strategies' that work well in rising/booming property markets but are a complete disaster in falling markets (let alone the crashing/collapsing market that we are currently in - mortgage approvals at -70%; close to 50% of chains falling apart; prices down 8.9% in the first 6 months of 2008; etc.). There are also vendors that have no experience of falling markets are believe that the naieve Estate Agents strategy of turning away potential buyers is a good one.

The arrangement of not being 'harrassed' (very peculiar choice of words for a 'bear'!) by offers of a certain level is a sure fire strategy to not sell your property. They will learn this lesson soon enough. All this happened 1989 - 1996 as well.

There are still plenty of Estate Agents out there operating their (the market is booming) business strategy of concentrating their efforts of getting as many properties on their books as possible (via high valuations, etc.) whilst do virtually no active selling (including turning away 'cheeky offer' people). In a rising/booming market this works well because the selling part of the equation looks after itself - as long as you can get property on the books it will sell. If you turn away a potential buyer another one will appear within a few days. In a falling market you have to concentrate the vast majority of your efforts on the 'selling' side of the business - to generate the turn-over and income. However, to do this successfully you have to have 'selling' skills. The vast majority of current Estate Agents don't have these skills - haven't needed them for the last 10 years. Combined with the 'selling skills' they need to go with the reality of the market and talk prices down with vendors and work positively with offers of -30%, etc.

All this is 'the bleeding obvious'! - but not to many Estate Agents, and probably not to significant numbers of vendors. There are probably large numbers of Estate Agents sitting in their offices scratching their heads asking - why aren't we getting the same numbers of sales that we did last year? It's the fault of the media!!! We'll just have to enforce our business strategy even more to get sales up - and be really strict with buyers. If they don't play properly we'll just turn them away!! That will teach them that they will just have to pay 9 or 10 times average income for an average house. If we stick to our guns they will just capitulate and pay the prices we want for properties! Etc., etc.

Edited by Alfie Moon

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A house that I am interested in is on for £725k, but the last similar house in street sold for £655k back in September 2007.

I put an offer around 20% (£525k) below the Sept 2007 price, which I found had been rejected by the EA and not passed on to the owner. I am in rented accommodation so nothing to sell and a good deposit so no problem on mortgage so an easy sale. The house came on the mnarket in February and it has already had 2 sales break down somewhare along the chain.

I am guessing the EA valued it at £725k to get the work and they cannot reduce it by £150k to £200k without looking incompetent. Or, they have had instructions from the owner that they think their house is worth £700k and they are holding out for it.

The house is vacant, so I cannot drop a letter around as there was a mountain of post when I viewed so probably any letter will not get read.

So how would you play it with the EA if they are not passing on offers and I have little confidence that they are even talking about us as potential buyers to the owners as they see us as chancers?

1. Wait, do nothing and let the market fall further.

2. Ask their neighbour for an address for the owner and write to them - although I wouldn't give out a neighbours address to a stranger so don't think I'll have any luck.

Any other tips to help this stand-off?

Go to another agent. Tell them that your offer was not passed on and get them to make the offer to your vendor. Sod the first agent.

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<snip

Any other tips to help this stand-off?

Seriously. If you're that convinced the EA isn't passing on the offer, buy a can of that fake snow and write your price and contact number on the front windows.

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Ask the Estate Agent politely (in writing) to confirm in writing that they have been instructed by the vendor to not accept offers below £X, including the date of this instruction. Include a copy of the Estate Agents letter in any written communications you have with the vendors - and indeed with the OEA if you go down that route.

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You like the house - it's empty and you're renting.

Offer to rent it for 2 years with an option to buy at any time in that period at full market value.

This to be determined by the average of 3 independent valuations.

It can be a very neat way of keeping all your options open.

It worked for me in '93!

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  • 395 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
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      • up 5%



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