What to do with an offer?

Mr_Man_6

Hi

My girlfriend is selling her flat, with the aid of an estate agent. She had a viewing the other day and the viewer offered her what she considers to be a fair price. The thing we're not sure about is, the viewer said that he would prefer to arrange it between ourselves, cutting out the estate agent. I'm not sure if this is even legal :eek: or what the repercussions could be. I would appreciate some advice.

M

PoorDave

EA is entitled to a fee if they "introduced" the buyer, generally.

The way round it i've seen is you get the house off rightmove, call round offering to cut the agent out (if vendor willing), then say you know the vendors and found out through a friend of a friend etc to avoid the EA saying "you saw our board" or "you saw it on rightmove".

However, it seems you're too late for that.

Was the offer made through the agent? If not then maybe you can get away with it. I'd suggest waiting until the agency period ends before you do anything, but you can have the deal agreed beforehand. At the end of the agency period (usually 8-12 weeks) get her to say she's decided not to sell. Then you can do what you like.

Unless you have a conscience, and think the EA should get some money for a sale they've obviously played a large part in...

courtjester

You will remain liable to the estate agent for their commission if they introduced the buyer and arranged this viewing. You would be conspiring to defraud the agent out of their commission and only YOU would be accountable, so there is no risk to the buyer in suggesting this as they have no liability to your agent for their fees whatever happens.

Don't do it. You must treat the agent according to the contract you have agreed. Doubtless, this particular buyer is looking for you to pass on what you notionally save in agents fees to them as a reduction in the property price.

All very one-sided.

They get several thousand pounds off the price and you get..... nothing, except for a court summons when the agent finds out.

You can certainly advertise a home privately and deal direct with buyers who come independently through the private route - even if you are using an agent you can legally avoid paying commission this way - but you can't legitimately pass over people who registered and came through the agent to 'private handling'.

Doozergirl

The estate agent has introduced a buyer and they are entitled to their fee. If the agent finds out, the only person to lose both face and money will be your girlfriend.

If the buyer is trying to work without the agent, I'm afraid I would mistrust them as it's incredibly cheeky to ask and I doubt it would be the first time they've rtied something underhand. I would not only go through the agent, but ask the agent to properly validify their offer with proof of funds.

By the sound if it, your girlfriend's buyer has a little more money to spend also and I would be pushing for nearer to asking price.

PoorDave

The usual deal is that you split the agent's fee between vendor and buyer (when doing one of these dodgy deals!)- the buyer doesn't generally get the whole amount as a discount. Not that i'm recommending you to do this....

freebo_2

The buyer wants you to sell for a lower price since you are saving on fees. He's after saving himself some money while putting you (and not himself) at risk of being held liable for fees. There is also the issue of the contract you've signed with the EA, if its a sole agency agreement and you sell during the period you owe them their fee anyway.

Personally I would politely refuse to cut out the agent (and I am no great lover of EA's, belive me) for two main reasons.

1) It may very well cost you once the EA finds out.

2) Its just plain dishonest - you have agreed to pay the EA a fee for providing a service, after all they've held up their side of the bargain.

Gorgeous_George

The viewer could be a mystery shopper working for the Estate Agent. Unlikely perhaps but if the EA introduced the viewer then the EA is entitled to commission.

I suppose the way around this would be for potential buyers to ask their parents or friends to register with the EA.

Dodgy, unfair and questionable from a legal point of view?

Having said that, I bought a house in 1999 for £60K (EA commision approximately £900). I noticed that the same property sold recently with an asking price of £160K.

At 1.5%, the EA would have earned £2,400.

That represents a cracking pay rise in 7 years.



GG

MissMotivation

You instructed the agent to find you a buyer......they have fullfilled their part and found you a buyer, the only reason the buyer wants to cut the agent out is because he obviously has stuff to hide, there is no benefit otherwise.

I would be very very wary. The agents are entitled to their fee, just pay it!!

densol_2

The buyer will always have a hold on you and may want you to reduce even further. The only person benefitting from all of this is the buyer. The EA will not give up - I used to work for a Solicitors that used to sue for unpaid estate agents fees. It is also dishonest.

Iv'e also sold privately and I found it pain. The EA does a lot of chasing etc. and liases with the surveyor if problems.

I would reject 100%