Estate Agents Commiting Fraud?

rajp

Hi,

Just wondering if anyone else has come across this, we were looking to buy a house (about £250k) put in a lower offer (only lower by 15K), due to the renovations required. Offer was rejected agent told us they are not selling.

Now after 5 months the house is back on sale, so I inquired again. It turns out that the house was sold by the previous agent 4 months ago, on top of that it was sold for .....wait for it £160k - that is unbelievable.....

I couldnt believe this so went about looking for actual sold prices to confirm if the house was really sold for that prices - used sites like nethouseprices.co.uk - and it confirmed this was the case.

The houses around the area are on average sold for 230 to 250 so how can it be sold for 160??? and also people not know about it. Worst thing is we only put in offer which was slightly lower not nearly £90K lower which is what the house was sold for and registered as.

Checked some other houses being sold in the area and found that some houses again had been sold for ridiculous low prices. While others are being sold at average price at the same time..

Now - I think there is some kind of insider dealing or fraudulent activity happening. Has anyone else come across this and if so how did they find out / what did they do i.e. complain to anyone?

thanks

shortchanged_2

I think you are probably right and believe this has been rife for years with EA's deliberately undervaluing properties getting a 'mate' to buy and then selling at a vastly inflated price, thereby netting them a tidy little profit.

There is not enough regulation in the property selling business.

timmyt

who are the agents that sound for so less - so we do not use them and make the same mistake

rajp

the houses are sold so i can get the sold house prices, but cannot confirm the agent / person who bought them.

Is there any way to check who the owner was if so that would be a way to confirm.

the agents that i know that were selling the house were a local family run business so not countrywide.

rajp

shortchanged wrote: »

I think you are probably right and believe this has been rife for years with EA's deliberately undervaluing properties getting a 'mate' to buy and then selling at a vastly inflated price, thereby netting them a tidy little profit.

There is not enough regulation in the property selling business.

it seems you are right because the same property is back on market and for the same price as 5/6 months ago. but in between they have bought it for £160K

princeofpounds

Possibly, but not necessarily. Circumstances might have changed that meant they had to panic-sell.

If you like, you can always try to contact the previous owner to tell them.

princeofpounds

Is there any way to check who the owner was if so that would be a way to confirm.

Yes, land registry online. Download the deeds for about £4 I think. That should tell you.

mark5

Was there a divorce or part exchange involved?

I bought a new build a few years back and another couple bought the same type house as mine for £230k a few months later.

Within a year she had an affair and he kicked her out, the house then appeared for sale at the price they originally bought at but didn't sell. However net house prices show it sold for 155k and the bloke was still living there.

Someone who viewed the house when it was for sale and had an offer rejected might think something dodgy had happened looking at net house prices but as a neighbour I see it he didn't want to sell and managed to buy her out!

Another possibility is that the sellers done a part-exchange with developers and prices were reduced on both sides of the deal.

rajp

princeofpounds wrote: »

Possibly, but not necessarily. Circumstances might have changed that meant they had to panic-sell.

If you like, you can always try to contact the previous owner to tell them.

well why not panic sell to me for 15k less instead of 90k less - panic selling just sound like an estate agent created word to hide fraud.

circumstances usually dont change in 2 weeks - and even if they do wouldnt you sell to people who have already put a higher offer and are willing buyers?

Also panic selling - also shouldnt mean estate agent lying and saying it is NO LONGER FOR SALE. they could easily have said it has now been sold. At which point i would most certainly have wanted to know the going price -

PANIC SELLING - I THINK NOT

rajp

mark5 wrote: »

Was there a divorce or part exchange involved?

I bought a new build a few years back and another couple bought the same type house as mine for £230k a few months later.

Within a year she had an affair and he kicked her out, the house then appeared for sale at the price they originally bought at but didn't sell. However net house prices show it sold for 155k and the bloke was still living there.

Someone who viewed the house when it was for sale and had an offer rejected might think something dodgy had happened looking at net house prices but as a neighbour I see it he didn't want to sell and managed to buy her out!

Another possibility is that the sellers done a part-exchange with developers and prices were reduced on both sides of the deal.

would have said yes - possibly exceptional circumstances - but there are about 4 / 5 houses on the street with the same kind of scenario. May be they were all having an affair with each other :-)

if you look at right moves website - they show you houses sold on your street - price + also when was it last advertised and how much it went for - so it could be but i doubt it as its not a one off anomaly.

rajp

princeofpounds wrote: »

Yes, land registry online. Download the deeds for about £4 I think. That should tell you.

unless i can do this an then some how report the agents involved - it is really worth it?