Estate Agents pulling a fast one? Any advice?

kazbrett

Hi - would be extremely grateful if anybody can shed some advice on my query!

I no longer have my property on an estate agents books. However, a house that I really like and have viewed is still up for sale. The estate agent representing the property contacted me last week to say that the owner is extremely interested in a part exchange of my house with his - with me paying the difference (his house is more expensive). He viewed on Monday night and his estate agent has called to say that he is very, very interested and has invited me to go along and view his again, which I shall do at the weekend.

However, just before leaving work tonight, his estate agent have emailed to say "I have been discussing the part-exchange proposal with my colleague, and whilst an agent handling this type of transaction would usually charge a full sales fee we are aware that we have not marketed your property. However, we will have introduced a purchaser (hopefully!) and will be handling the progressing of your sale and purchase including liaising with solicitors, surveyors and mortgage brokers etc. Would you therefore be kind enough to agree a greatly reduced fee of 0.5% to us? Hopefully this will give you a substantial saving on the fee you would have been required to pay if an estate agent had been successful in introducing a buyer."

What does anybody think I should do about this. I don't want to pee off the estate agent and they make it difficult when sorting out paperwork etc, but I don't see why I can't deal with my solicitor, surveyor etc!!! Are they pulling a fast one - or do you think their fee is justified?

Any advice would be greatly appreciated.

Many thanks in advance.

PS. The 0.5% fee would equate to approx. £1,250.

guppy

I'd tell them that you will not be requiring their services, and besides, that you feel it would be a conflict of interest for them to act as an agent for both parties.

Remind them that they have no contract with you anymore (assuming that this is the case). They are probably just desperate for some positive cash flow in the current climate.

Prudent

I know this doesn't directly answer the question, but I have been in a similar position.

In the last housing slump in the early '90's I had my flat on the market. I viewed a house for sale and liked it. I hadn't sold and told the owners I would buy the house if I could sell mine. After a month or so they phoned me and asked if I would part exchange my flat against there house as they wanted a cheaper place.

I took my flat off the market and bought their house with my flat being used in part excahnge. I did not pay any fees to my estate agent or to theirs. They paid their own estate agent the usual fee.

Hope this helps

kazbrett

Prudent - yes, thanks, you have grasped my question correctly! They will get a very good commission from the house sale, nearly £10K if the owner accepts my offer. I looked around the house in March and liked it, but couldn't sell mine. Then I more or less decided not to sell and took mine off the market. Last week I received a call saying that the owner of the house I liked was willing to part exchange as the monies are desperately needed in a divorce settlement, with the man taking my house as his share and the remainder going to his ex-wife. Therefore, although his estate agent rang me and set up a night this week for him to view, they have had no other input. Also, the guy who viewed last night left his mobile phone number in case I wanted to contact him about anything. His agent called this morning with the news that the guy was very interested and then set up an appointment with me to view his this coming Thursday. Apart from that, they have had no other involvement. It's been a very long time since I bought a house plus I have never sold and bought before, but I'm assuming that with the likes of the solicitor, mortgage lender and surveyor that these are things that I can deal with and therefore don't need the assistance of his estate agent. Like you say, I think they are just trying to bump up their fees in this very poor climate. My finances will already be stretched if I buy this property and I thought that the saving I would make by not having an estate agent could be put towards other costs. However, I'm not sure how to word it to them in a reply to their email!!

ginvzt

Why don't you say - "I haven't approached you and I am not willing to sign any contract. I am the buyer and my house is just part of the payment. I am not selling my house, I am using it a part of my deposit. Therefore I don't think any fees are due. Are you charging other buyers a fee if they have a decent enough deposit and don't require your advice about mortgages and have their own solicitor?"

lincroft1710

If you read Prudent's post carefully you will see that he arranged px with vendor, not via EA. Your px was arranged by EA, therefore he did introduce a buyer for your property. Presumably had you sold your property to a third party via EA, you would have been liable for full fees. In one respect you've been lucky that you've sold your property in a difficult market, found one you can buy and you're only paying half fees.

bookduck

Just a thought: say one property was worth £101 000 and the other property worth £200 000, could the first person sell the property for £1000 and the second one could sell for £100 000. It is the same difference to you both, but all the bills, taxes etc. are much less - EA won't be happy?

chickmug

As a long and well established EA I find this EA being a b****y greedy money grabbing wotsit. I have just had exactly the same and the people involved were extremely nice and actually asked if they would be charged for our having agreed with our vendor that they (the vendor) would buy their house in P/X. I said NO WAY as we happy to get the deal through and earn the one commission from our seller clients in these tough times.

Perhaps attitudes like this ensure we have around 65% repeat business from old customers and their recommendations?

kazbrett

Chickmug - thanks so much for your post. I was thinking exactly the same but didn't know what common practice was or even how to word it in a reply to her email. Any suggestions?

chickmug

kazbrett wrote: »

Chickmug - thanks so much for your post. I was thinking exactly the same but didn't know what common practice was or even how to word it in a reply to her email. Any suggestions?

I will think and get back in the morning as just off out now and late!!!

chickmug

A number of random thoughts: -

The EA will not be progressing anything for you as he is working for the seller and as such would expect to link in with the eventual buyer, and their respective solicitors, to ensure all goes through smoothly .This would include issuing paperwork and regular phone/email updates. So how they can suggest it is a good deal as they will be doing work for you as it is only the work they would have been doing anyway!!!!

This doesn’t happen very often with EA’s so they may not have a well thought out policy. If it is a partner you are dealing with they are likely to only see ££££’s and take every chance to maximise their income. They will always ‘try it on’ as they are thick skinned If it is a member of staff dealing with it they will merely do as they are told. ‘Firing the bullets’ the boss has made.

I assume when their client buys your house they will be instructed to sell and have that commission coming in on top of the money they are trying to exhort from you. Will they charge the seller the full commission on each of those sales or will they charge the difference between the sellers price and the price he is paying you for your home -- a lesser commission. On the latter I doubt it.

Even though I am a member of the NAEA and fairly conversant with all their rules and regulations, as well as OFT , PMA, etc I am not aware this scenario would be covered anywhere.

So I would politely decline the special offer of 0.5% and why not outline the points I have made above especially as they will probably be earning two commissions from this deal. See what happens and next email suggest it is unfair and you may take it up with OFT or NAEA but not sure if they are a member of the latter.

You could say you have taken advice from a member of the NAEA on which you have based your email?

Good luck and let us know the outcome.