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rosered22
Posts: 18 Forumite
Hi, thanks for reading!
We viewed a house about 3 weeks ago and after doing our research on sold prices in the area we put in an offer about 12% lower than the asking price as we genuinely believe it was over priced due to condition and smaller room sizes than the others that have sold for higher.
After putting all our 'evidence' in an email the EA said they agreed with us and were apparently pushing the seller to accept the offer but he declined saying that he was in no rush and would wait for higher.
Our plan was to wait it out (we're in no rush, our house is sold, deposit in the bank and we're renting for 6 months) and then go back in a few weeks if there had been no other offers.
However, I just had a call from another agent we've viewed with before asking if we are still looking as they are about to sign up a house in that road and after I probed they confirmed it wasn't a new one, but had been on with another agent and was in fact the same house.
I told them about our lower offer and they agreed with me saying 'We do think EA1 was unrealistic with their valuation, if we end up marketing it ourselves we would put the asking price lower' and they promised to get back to me if they end up taking on the property (no idea if the seller has already been in touch with them or signed up, or what)
I was initially pleased, thinking that EA2 would value it lower and then the seller would be more likely to accept our offer, but then I started reading about disputes that can happen when multiple agents are involved and that if we offered through EA2 and secured a deal EA1 might claim that they were the ones who 'introduced' us to the property and that they are due the commission.
I'm also worried EA2 will be less likely to push our offer knowing that we initially went through EA1 and they might claim the commission or at least want a share of it and therefore not push our offer as much as they could.
Any advice on anything we can do/say to either of the agents would be much appreciated.
Thanks in advance!
We viewed a house about 3 weeks ago and after doing our research on sold prices in the area we put in an offer about 12% lower than the asking price as we genuinely believe it was over priced due to condition and smaller room sizes than the others that have sold for higher.
After putting all our 'evidence' in an email the EA said they agreed with us and were apparently pushing the seller to accept the offer but he declined saying that he was in no rush and would wait for higher.
Our plan was to wait it out (we're in no rush, our house is sold, deposit in the bank and we're renting for 6 months) and then go back in a few weeks if there had been no other offers.
However, I just had a call from another agent we've viewed with before asking if we are still looking as they are about to sign up a house in that road and after I probed they confirmed it wasn't a new one, but had been on with another agent and was in fact the same house.
I told them about our lower offer and they agreed with me saying 'We do think EA1 was unrealistic with their valuation, if we end up marketing it ourselves we would put the asking price lower' and they promised to get back to me if they end up taking on the property (no idea if the seller has already been in touch with them or signed up, or what)
I was initially pleased, thinking that EA2 would value it lower and then the seller would be more likely to accept our offer, but then I started reading about disputes that can happen when multiple agents are involved and that if we offered through EA2 and secured a deal EA1 might claim that they were the ones who 'introduced' us to the property and that they are due the commission.
I'm also worried EA2 will be less likely to push our offer knowing that we initially went through EA1 and they might claim the commission or at least want a share of it and therefore not push our offer as much as they could.
Any advice on anything we can do/say to either of the agents would be much appreciated.
Thanks in advance!
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Comments
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I made an offer a few months ago on a property with multiple agents. It had been on the market a while and I asked the agents why it hadn't sold yet (this is London, properties sell quickly) and they said the vendor wouldn't accept less than the asking price and had turned down several offers that were 5-10k below. Given it ticked the boxes, the short supply of properties, was close to the tube station and we'd been looking a while we offered the asking price.
Before accepting the offer, the vendor wanted to meet me. He then told me he had another offer from the other agent and wanted us to race each other, first to exchange gets the property. Needless to say we walked away. The property in question still hasn't sold. This experience has taught me multiple agents probably means greedy vendor and not worth bothering with.0 -
I was initially pleased, thinking that EA2 would value it lower and then the seller would be more likely to accept our offer
Vendor would appear to have a target price in mind. EA's can only advise. Their clients make a decision.
Why would the vendor switch EA's. If the price were simply to be lowered.0 -
Yes EA1 introduced you, so if you end up buying the seller will almost certainly have o pay EA1.
If you go via EA2, seller may have to pay EA2 as well.
That's likely to make the seller increase his price!
All of this is moot. The seller has rejected your offer. You can now
* forget it and move on
* increase your offer
* or leave your offer on the table telling the buyer to come back to you if he changes his mind0 -
Thanks folks, that's helpful!
I think it unlikely that he had a price in mind before he had it valued. He's a very elderly guy on his own, unless he's got children advising him.
I'd perhaps be willing to offer another 5k tbh...so is it unwise to go through EA2 at all, so that vendor doesn't have to pay 2 fees?
Will that make EA2 unlikely to want to deal with me further, arrange a viewing etc if they know I've been with EA1?0 -
Also...is it a good idea to tell EA1 that EA2 have spoken to me and are possibly taking it on as well? I don't know if they've even been appointed yet...he only said 'if' on the phone.0
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I think it unlikely that he had a price in mind before he had it valued. He's a very elderly guy on his own, unless he's got children advising him.
That's stereotyping. Scrooge was a very elderly man on his own!
Your vendor might have a lifetime of being "careful" with money, indeed it's perhaps more likely.
I think it's unlikely EA2 will be interested in dealing with you as odds are he'd get nothing for the sale.0 -
Thanks for your advice AnotherJoe. I see your point, but I was meaning that the house was very old fashioned, no sign of technology or broadband etc so I'm presuming he's not technologically savvy enough to compare sold prices himself etc. I think if he had he would see as I have that Jan and May 2016 two similar houses in neighbouring streets sold for 55K and 30K less than his asking price and the 2 houses that went for slightly higher both had triple storey extensions, all rooms doubled, ensuites added etc....that's what's leading me to think he's purely going by what his estate agent advised him in the first place and he's sticking to it, rather than actually knowing what the market is like in the first place.
I agree I'm making assumptions which could be wrong, but based more than just age...so I don't think that's stereotyping.
Anyway! Thank you for your advice...good to know not to pin any hope on EA2 being helpful.
Is that the case only if they market it jointly, or would it change if EA1 were no longer marketing it, only EA2? I've no idea which it is, or even if EA2 have been instructed yet.0 -
Will that make EA2 unlikely to want to deal with me further, arrange a viewing etc if they know I've been with EA1?Is that the case only if they market it jointly, or would it change if EA1 were no longer marketing it, only EA2? I've no idea which it is, or even if EA2 have been instructed yet.
EA contracts are usually fairly consistent in these areas - because they adhere to The Property Ombudsman Code of Practice.
EA1 introduced you... So the seller will have to pay a fee to EA1, if either
a) You eventually buy the property within 6 months and another agent is involved.
b) You eventually buy the property within 2 years and no other agent is involved.
So if you now get an offer accepted through EA2, the seller will have to pay EA2's full fee - plus EA1's fee, because of option 'a' above (unless you wait 6 months).
If you have no dealings with EA2 and make your revised offer through EA1, EA2 earns no fees.
Some 'second' EAs will be very moral about this and send you back to EA1, Others will be less moral and go into negotiations with you, and claim their fee - and just leave the seller to pay/argue with EA1.0 -
Very succinct! Thank you eddddy!0
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