Received offers but worried house has been undervalued

princeofpounds

Sorry but whilst it may happen on the odd time I find the idea that it is widespread to be ludicrous.

The problem isn't actually 'mates' (after all, they don't have them ;-) ) but people who become mates by passing brown paper envelopes or similar to EAs.

I agree it's probably not that widespread, but I should imagine it's not that uncommon particularly on development properties.

[Deleted User]

Thanks for all your advice on this one. We've heard about sealed bids - but if we go down that route is it possible that the potential buyers will just pull out (as stamp duty puts them off)? How do sealed bids actually work?

Our problem is that actually we haven't found anywhere we really like yet, despite quite a lot of looking. By this weekend we'll have viewed 20 properties and we've covered as much of the main property sites as we can: we're probably being fussy. So, discussion around us picking the perfect buyer and selecting on that basis are great, but actually we don't want to proceed quickly as we need more time to find somewhere for ourselves!

Re: EAs pricing low. My thinking - which may be wrong - is that an EA would rather underprice a property but sell it rather than price it correctly but not sell it. If 5 people think this is great value and put it an equal offer then the EA would rather have an easy sell and pocket the cash. At least, that's my worry*

So, I'll stop my rambling now - I have to dash off - but think this sealed bids sounds interesting, provided it doesn't scare people off?

*not to open another can of worms, but I struggle to see how the EA has earned their commission on this one? Of course, they did get 5 viewings, but it was pretty easy work on their part...

[Deleted User]

PasturesNew wrote: »

Looking at your estate, I can see sold:
- £250k fixed price, 3 bed terraced http://www.rightmove.co.uk/property-for-sale/property-13365921.html
- £239k, 2 bed end of terrace with 3 parking spaces http://www.rightmove.co.uk/property-for-sale/property-23226145.html

For a 2 bed, mid terraced, in your estate, £250k looks fair. So I think it's that people want to be on your estate, but not at any price.

There's only one other 2 bed house within 1/4 mile of you, for sale at £230k http://www.rightmove.co.uk/property-for-sale/property-28419104.html

Not to sound like Hyacinth Bucket, but our house is only four years old (these are 10+) and was built by a more reputable builder (don't want to open a can of worms). Our next door neighbour's house, which is end of terrace and has a slightly bigger garden, was recently valued at £289k.

Doozergirl

Deleted_User wrote: »

Thanks for all your advice on this one. We've heard about sealed bids - but if we go down that route is it possible that the potential buyers will just pull out (as stamp duty puts them off)? How do sealed bids actually work?

Our problem is that actually we haven't found anywhere we really like yet, despite quite a lot of looking. By this weekend we'll have viewed 20 properties and we've covered as much of the main property sites as we can: we're probably being fussy. So, discussion around us picking the perfect buyer and selecting on that basis are great, but actually we don't want to proceed quickly as we need more time to find somewhere for ourselves!

Re: EAs pricing low. My thinking - which may be wrong - is that an EA would rather underprice a property but sell it rather than price it correctly but not sell it. If 5 people think this is great value and put it an equal offer then the EA would rather have an easy sell and pocket the cash. At least, that's my worry*

So, I'll stop my rambling now - I have to dash off - but think this sealed bids sounds interesting, provided it doesn't scare people off?

*not to open another can of worms, but I struggle to see how the EA has earned their commission on this one? Of course, they did get 5 viewings, but it was pretty easy work on their part...

If Stamp Duty puts all five of those buyers off then you clearly have a house which is worth only £250k. The sealed bid can still be £250k - it doesn't have to be more. If your buyers are interested above £250k then they should start bidding above that automatically. It doesn't have to be sealed bids, you can just let them bid each other up. I'd call the EA this afternoon as you need to move on this quickly - hopefully they've already started bidding up but if they haven't then I'd encourage second viewings so that your girlfriend can explain that you do indeed have lots of interest in the house. Or maybe a block viewing - people love competition and it will be obvious that people are interested!

People will always complain that an agent didn't earn their cash when a house sells quickly but sometimes it just happens like that. I bet you couldn't pull five people out of a hat in a weekend that wanted to buy the house! You'd also complain they weren't earning their money if the house didn't sell for ages but the advertising does cost money and the resources to organised the contiuned viewings. I know which position I'd rather be in.

The EA has to resolve this as you can't sell to five people. Once a sale has been agreed then they will be loathe to entertain other offers but whilst a sale has not been agreed, they will help you get the best price as they simply have to whittle this down to one buyer. They can earn their fee by getting the best price for your gf.

I would stop being so negative about this situation, it is a genuinely good one. The house will find it's level. If no-one offers above £250k then it simply isn't worth more than that - five potential buyers can't really be wrong. If it does go higher then great. Either way, your gf has got the price she wants and the house has found it's level. It's a funny market out there right now - there isn't much available but people don't want to pay too much either. If something is sensibly priced (and I don't mean cheap), it's getting snapped up.

Running_Horse

Deleted_User wrote: »

*not to open another can of worms, but I struggle to see how the EA has earned their commission on this one? Of course, they did get 5 viewings, but it was pretty easy work on their part...

There's no pleasing some people. The agent does his job properly and you complain. People moan about EAs, but having worked in retail it's the general public you have to worry about. What do you think pays for the shop rent, rates, electricity, wages, advertising etc? There was me feeling sympathy, but you've lost it now.

RabbitMad

Deleted_User wrote: »

Re: EAs pricing low. My thinking - which may be wrong - is that an EA would rather underprice a property but sell it rather than price it correctly but not sell it. If 5 people think this is great value and put it an equal offer then the EA would rather have an easy sell and pocket the cash. At least, that's my worry*

*not to open another can of worms, but I struggle to see how the EA has earned their commission on this one? Of course, they did get 5 viewings, but it was pretty easy work on their part...

Surely they've only priced it correctly if it sells?

*You don't know how many people on their books they've phoned up, sent the details to etc The fact they've found 5 potential buyers in 1 weekend sounds like they have earnt their commission, especially if they get the price up the say £260 to £270 level.

Hopejack

I can't really see the problem - you have 5 offers, current market some are lucky to get 1! I have my house up for sale - a week tomorrow and I've had one viewing who loved it but aren't proceedable right now!!

If you do decide to start getting other EAs involved you need to tread v carefully and check your contract with the first EA - I would like to bet you'll get stung for commission from them - they've found you not one, but five, potential buyers and the fact you're getting cold feet over a price your OH agreed on means they'd come after her for what's due to them (regardless of whether you think they earned it). In addition, if one of those buyers decides to put a new offer in with another agent if you go down that route, if you have a sole selling rights agreement, then you will liable to pay both agents, possibly. So you need to check that out asap before making any rash decisions.

I really think sealed bids is the best way to go and if you don't get more than £250k then the place has found it's sealing.

Like I say, you sould a bit ungrateful, after all your EA got those people through the door initially.... Do you really think you could have marketed the place at £280k and still got those offers or as much interest as quickly??

FreeLocateMe.co.uk

In reply to the top query, it sounds like the agent has put the house on at a price that they know will sell easily and because you have basically helped them by telling them £250k then they will be more than happy to advertise it at this. I f I were you with so many positive offers straight away I would ask the agent to remarket it at a higher value for a couple of weeks to see what happens. This will mean that at least one of the original offers will still be there if it does not work

CharlieBilly

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see this rule


http://forums.moneysavingexpert.com/showpost.html?p=3477039&postcount=28

MissMotivation

princeofpounds wrote: »

The problem isn't actually 'mates' (after all, they don't have them ;-) ) but people who become mates by passing brown paper envelopes or similar to EAs.

I agree it's probably not that widespread, but I should imagine it's not that uncommon particularly on development properties.

In the 16 years I've been an EA Ive been offered money once! I read all the time on here about EA's selling to their 'mates' or being offered money in a 'brown paper envelope'..........I wish I knew where all this was going on (joke)