Your browser isn't supported
It looks like you're using an old web browser. To get the most out of the site and to ensure guides display correctly, we suggest upgrading your browser now. Download the latest:

Welcome to the MSE Forums

We're home to a fantastic community of MoneySavers but anyone can post. Please exercise caution & report spam, illegal, offensive or libellous posts/messages: click "report" or email forumteam@.

Search
  • FIRST POST
    • rizla01
    • By rizla01 15th Jul 17, 12:02 PM
    • 6,750Posts
    • 7,431Thanks
    rizla01
    Ultimate GREED by top estate agent? Or perks of the job?
    • #1
    • 15th Jul 17, 12:02 PM
    Ultimate GREED by top estate agent? Or perks of the job? 15th Jul 17 at 12:02 PM
    Wow!.

    I am amazed by a discovery that I have made.

    The Winners of the 'Best Estate Agency in the UK' Award, 2017, checks the development potential of properties that they are asked to market.

    They then put in an application for said development and when they have obtained approval, they purchase it from the seller, sell off the original property minus the land that is to be developed, complete the build and then sell that on for their own profit.

    Perks of the Job perhaps?

    Is this Ethical? Or just Plain Greed?

    Your thoughts?
    "Unhappiness is not knowing what we want, and killing ourselves to get it."
    Post Count: 4,111 Thanked 3,111 Times in 1,111 Posts (Actual figures as they once were))
    Women and cats will do as they please, and men and dogs should relax and get used to the idea.

Page 1
    • silvercar
    • By silvercar 15th Jul 17, 1:10 PM
    • 36,061 Posts
    • 152,323 Thanks
    silvercar
    • #2
    • 15th Jul 17, 1:10 PM
    • #2
    • 15th Jul 17, 1:10 PM
    I thought they had to declare to buyers and sellers if they were linked in any way to a purchase or sale.
    • eddddy
    • By eddddy 15th Jul 17, 1:15 PM
    • 5,439 Posts
    • 5,118 Thanks
    eddddy
    • #3
    • 15th Jul 17, 1:15 PM
    • #3
    • 15th Jul 17, 1:15 PM
    Are you basing this on a news story? Do you have a link?

    Whilst it may be possible to do something like this, it would be more complicated than you suggest and/or rely on very naive sellers - and it would probably be illegal.

    It certainly happened a few decades ago, but regulation and legislation is tighter now.
    • rizla01
    • By rizla01 15th Jul 17, 1:21 PM
    • 6,750 Posts
    • 7,431 Thanks
    rizla01
    • #4
    • 15th Jul 17, 1:21 PM
    • #4
    • 15th Jul 17, 1:21 PM
    Are you basing this on a news story? Do you have a link?

    Whilst it may be possible to do something like this, it would be more complicated than you suggest and/or rely on very naive sellers - and it would probably be illegal.

    It certainly happened a few decades ago, but regulation and legislation is tighter now.
    Originally posted by eddddy
    Its fact.


    http://www.rightmove.co.uk/property-for-sale/property-67592003.html
    "Unhappiness is not knowing what we want, and killing ourselves to get it."
    Post Count: 4,111 Thanked 3,111 Times in 1,111 Posts (Actual figures as they once were))
    Women and cats will do as they please, and men and dogs should relax and get used to the idea.

    • Annie35
    • By Annie35 15th Jul 17, 1:28 PM
    • 117 Posts
    • 78 Thanks
    Annie35
    • #5
    • 15th Jul 17, 1:28 PM
    • #5
    • 15th Jul 17, 1:28 PM
    nothing wrong with that, they've stated their interest correctly.
    • MatthewAinsworth
    • By MatthewAinsworth 15th Jul 17, 1:40 PM
    • 2,864 Posts
    • 1,141 Thanks
    MatthewAinsworth
    • #6
    • 15th Jul 17, 1:40 PM
    • #6
    • 15th Jul 17, 1:40 PM
    If that new development provides housing it's a good thing, they make profit because they're providing services that society needs
    • moneyistooshorttomention
    • By moneyistooshorttomention 15th Jul 17, 1:41 PM
    • 13,979 Posts
    • 37,966 Thanks
    moneyistooshorttomention
    • #7
    • 15th Jul 17, 1:41 PM
    • #7
    • 15th Jul 17, 1:41 PM
    If they've purchased it from the seller in the first place - then I would regard that as unethical for them to have done that. If I'd been the seller I'd be "after their blood" if they had done that to me if I were many people (ie for taking my profit that I should have had).

    With my viewpoints I have - I'd regard it as unethical in another respect. In that I would have sold it as one property and intended all the garden to remain garden and not have some of it garden-grabbed by a developer. Followed by being "after their blood" for quite a different reason to many.
    #MeToo

    Why should our needs override the needs of all other living species? What makes us so special? (Brigit Strawbridge)
    • MatthewAinsworth
    • By MatthewAinsworth 15th Jul 17, 1:48 PM
    • 2,864 Posts
    • 1,141 Thanks
    MatthewAinsworth
    • #8
    • 15th Jul 17, 1:48 PM
    • #8
    • 15th Jul 17, 1:48 PM
    The seller could've separated off the land themselves and done this, or if they anticipate this they should consider that potential in the price they sell for
    • Annie35
    • By Annie35 15th Jul 17, 1:50 PM
    • 117 Posts
    • 78 Thanks
    Annie35
    • #9
    • 15th Jul 17, 1:50 PM
    • #9
    • 15th Jul 17, 1:50 PM
    thing is to buy it they would have to of declared their interest to the original seller (to be lawful (im assuming they were the original sellers agents right?)).

    but really what someone does with their new purchase is upto them, it doesnt matter to you (the original seller) as you had as much opportunity to develop the plot yourself, didnt you. Or wait for the 'right' buyer if you didnt want to risk it being developed (but why would you care? you dont want to live their anymore)

    Anyway, at best id say its opportunistic but that's business, & it is lawful.
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 15th Jul 17, 1:56 PM
    • 2,044 Posts
    • 3,070 Thanks
    ScorpiondeRooftrouser
    If they've purchased it from the seller in the first place - then I would regard that as unethical for them to have done that. If I'd been the seller I'd be "after their blood" if they had done that to me if I were many people (ie for taking my profit that I should have had).

    With my viewpoints I have - I'd regard it as unethical in another respect. In that I would have sold it as one property and intended all the garden to remain garden and not have some of it garden-grabbed by a developer. Followed by being "after their blood" for quite a different reason to many.
    Originally posted by moneyistooshorttomention

    Jesus Christ. You don't have any say in what anybody who buys your property off you can do with it. Your intentions are completely irrelevant.

    If they declared their intention to purchase it then there's nothing unethical in it at all, although you'd be a fool to trust them to market it properly to others.

    How is it possible for one person to post as much rubbish as you do? Are you some kind of consortium?
    • eddddy
    • By eddddy 15th Jul 17, 2:18 PM
    • 5,439 Posts
    • 5,118 Thanks
    eddddy
    So two estate agents are selling a property, and applying for planning consent for the garden.

    Why do you think the property was bought unethically or illegally?
    • IAmWales
    • By IAmWales 15th Jul 17, 2:23 PM
    • 1,686 Posts
    • 3,477 Thanks
    IAmWales
    This is no different to a property developer building a relationship with an estate agent so they get advance notice of suitable properties. From my experience such an arrangement is very common.
    • moneyistooshorttomention
    • By moneyistooshorttomention 15th Jul 17, 2:26 PM
    • 13,979 Posts
    • 37,966 Thanks
    moneyistooshorttomention

    but really what someone does with their new purchase is upto them, it doesnt matter to you (the original seller) as you had as much opportunity to develop the plot yourself, didnt you. Or wait for the 'right' buyer if you didnt want to risk it being developed (but why would you care? you dont want to live their anymore)
    Originally posted by Annie35
    Reason why people might care = acting as a steward of the land (ie to safeguard it - for other species/future generations/etc).
    #MeToo

    Why should our needs override the needs of all other living species? What makes us so special? (Brigit Strawbridge)
    • ACG
    • By ACG 15th Jul 17, 2:30 PM
    • 15,790 Posts
    • 8,092 Thanks
    ACG
    If it is declared it is fine. If it is done cloak and dagger then its unethical (in my opinion), but I do not think anyone would say Estate agents are known for being ethical.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • PField
    • By PField 15th Jul 17, 2:46 PM
    • 88 Posts
    • 66 Thanks
    PField
    Reason why people might care = acting as a steward of the land (ie to safeguard it - for other species/future generations/etc).
    Originally posted by moneyistooshorttomention
    Future generations need somewhere to live, I think this is to be applauded if it's all above board and buy the sounds of it, it is. If people are finding no use for their gardens in modern times, then it should be used for housing rather than building on greenbelt. And if homeowners don't know how or cant be bothered, nothing wrong with someone else doing it.
    • ScorpiondeRooftrouser
    • By ScorpiondeRooftrouser 15th Jul 17, 2:48 PM
    • 2,044 Posts
    • 3,070 Thanks
    ScorpiondeRooftrouser
    Reason why people might care = acting as a steward of the land (ie to safeguard it - for other species/future generations/etc).
    Originally posted by moneyistooshorttomention
    Don't bloody sell it then. How do you propose to find out what people are planning to do with it, anyway?
    • rizla01
    • By rizla01 15th Jul 17, 3:34 PM
    • 6,750 Posts
    • 7,431 Thanks
    rizla01
    OK,
    So you approach an EA hoping to purchase a property with a little space around it and agree to market you own property with them, based on them agreeing to seek out a suitable property for you?

    After a few years nothing has turned up -- then you discover this?
    1.
    Do we STILL say its OK?

    and secondly
    You have just wasted two years whilst waiting to move!
    Would you be happy?

    And 3rdly.
    Is this type of behaviour to be acceptable by The Winners of the 'Best Estate Agency in the UK' Award, 2017
    Last edited by rizla01; 15-07-2017 at 3:45 PM.
    "Unhappiness is not knowing what we want, and killing ourselves to get it."
    Post Count: 4,111 Thanked 3,111 Times in 1,111 Posts (Actual figures as they once were))
    Women and cats will do as they please, and men and dogs should relax and get used to the idea.

    • glasgowdan
    • By glasgowdan 15th Jul 17, 3:43 PM
    • 2,590 Posts
    • 2,906 Thanks
    glasgowdan
    I generally dislike every developable bit of land being fenced off and built on... it's a shame, and property plot sizes are getting smaller. Farm steadings are being split into tiny cottages and 8 apartment victorian dwellings split into top floor and bottom floor flats.

    There won't be many of these larger style properties for future generations to enjoy.

    I think that's what a poster above is trying to say, though in a bit of a confusing way!
    • MatthewAinsworth
    • By MatthewAinsworth 16th Jul 17, 5:58 AM
    • 2,864 Posts
    • 1,141 Thanks
    MatthewAinsworth
    I think future generations will appreciate affordable housing more than barns they can visit - especially when in full time work with young children they won't have much time for visiting places
    • Davesnave
    • By Davesnave 16th Jul 17, 7:31 AM
    • 23,574 Posts
    • 89,434 Thanks
    Davesnave
    I generally dislike every developable bit of land being fenced off and built on... it's a shame, and property plot sizes are getting smaller. Farm steadings are being split into tiny cottages and 8 apartment victorian dwellings split into top floor and bottom floor flats.

    There won't be many of these larger style properties for future generations to enjoy.
    Originally posted by glasgowdan
    However you look at it, its land prices which control this, so few people can afford to own the whole of larger properties.

    I recently worked out from Rightmove data that 'my' quarter of a room in the former London hostel, where I once lived, is now worth about the same as our smallholding!

    Near our smallholding, is a complex of former barns that were developed in the 90s. They preserved their overall shape, but I don't think anyone pretends that the barns look original. However, what would their fate have been otherwise? The farm is now just part of a much larger consortium, producing cereal crops with machinery owned by external contractors, so there's no need for barns to house animals or tractors, balers, harvesters...or even farm workers.

    Our smallholding only exists because the land is too awkward for the large machines. Years ago it would have been possible to eke out a living from it, but now that would be tough. Pig production here ended in the early noughties. Places like this are now either hobby enterprises, funded by the owner's other income streams, or, as in our case, the fields are rented to help a local farmer fend off competition from the big guys.

    We therefore have no particular need for a big modern barn. Recent legislation means we could develop it, similarly to the old barns, so in theory at least, it might become affordable rural housing for 3 families. The question is whether we or any builder would take that on, when it would be easier selling it to an individual together with half an acre. Again, it would be land prices driving the decisions there; homes in unspoiled countryside fetch premium prices.

    There's one possibility on the horizon, which is that local land trusts are being set up to find and acquire sites for affordable housing. We have one here. I would look at that, and I dare ay others would too. However, it would still mean land being carved into smaller chunks and fenced-off, as you mention.
    'A society grows great when old men plant trees whose shade they'll never sit in.'
Welcome to our new Forum!

Our aim is to save you money quickly and easily. We hope you like it!

Forum Team Contact us

Live Stats

2,374Posts Today

7,225Users online

Martin's Twitter
  • Interesting, most people say they would champion a policy from a party they usually oppose. Yet is anyone brave eno? https://t.co/MWYGHunAqu

  • RT @MSE_Deals: The MSE deals team are in the office nice and early to bring you full analysis of all the #BlackFriday deals throughout the?

  • RT @MSE_Deals: #BlackFriday UPDATE... We've spotted some of Currys' prices are cheaper online than in its stores, eg, Sonos Play 1 £149 onl?

  • Follow Martin