Selling house privately although listed with agent

BFJ

Have a sole agency agreeement with a local estate agent to sell our house, but last week my neighbour came round (who we'd told that the house was on the market) and he's intertested in buying it (live in a universty town so wants to rent it to students).

The agent has also introduced someone who is very keen (their grandmother used to live in this house and they have a strong emotional bond to the place), and of course they are going to want us to sell to the buyer with them, not privately.

Does anyone know if they're any circumstances under which we have to sell with the agent (i.e. if their buyer offers asking price)? Of course, we're keen to sell to neighbour as this will save nearly 2k in fees.

Of course, it depends on the offers from both, which they have both intimated they will make. But, if for instance, both offered asking price then would want to go with neighbour, and not have agent try to force us to sell through them.

silvercar

Your house, you do what you like.

Appease the agent by telling him you will go back to him if the sale doesn't proceed; promise to look at houses to buy through him. You've behaved honestly by telling him as soon as you have another offer, whereas you could have played both along. If he's a decent bloke he'll accept it and move on.

danm

is it a sole agancy agreement or sole selling agreement?

think there is a difference between the two that could possibly have an impact

why not just tell the sols that your nieghbour have offered asking price..see if granny matches it. (assuming of course you have not hit the asking price yet)

danm

btw, far from an expert, just recall reading somthing like this once upon a time

BFJ

it's a sole agency, not selling agreement, so guess I'm free to sell privately.

Just that if neighbour and agent-invited person both offer asking price then still want to go with neighbour as 2k better off, although wasn't sure if the agent may say that they've got an asking price sale so I have to take it, or face some kind of fee for their efforts.

Bossyboots

BFJ wrote:

it's a sole agency, not selling agreement, so guess I'm free to sell privately.

Just that if neighbour and agent-invited person both offer asking price then still want to go with neighbour as 2k better off, although wasn't sure if the agent may say that they've got an asking price sale so I have to take it, or face some kind of fee for their efforts.

You need to read your agreement with them. Its usually no sale, no fee, so you should be okay but you will only know by reading your agreement. I doubt it will say you have to sell to someone they introduce. What if you don't like them? Many people sell to buyers that "feel right" for the house. The estate agent can't dictate to you who should be your buyer, but check your agreement thoroughly for any quirky clauses that could end up costing you money but I would expect you to be okay.

PoorDave

I'd expect anyone offering privately to offer less if they know you're not going to have to pay the agent's fees

flea72

if youre property is being marketed through an agency, then no matter where the buyer comes from, the agency will expect their fee.

the only way to avoid this is once your agreement time is up, you cancel it, and then you are free to sell to whoever you want (although most agents still put a time clause in their contracts, where you cant sell with 6wks of termination of contract)

Flea

Gorgeous_George

flea72 wrote:

if youre property is being marketed through an agency, then no matter where the buyer comes from, the agency will expect their fee.
Flea

What the EA expects and what the EA gets may well be different. OP needs to read the contract (a bit late really).

It is unlikely that the EA will be entitled to a penny.



GG

BFJ

flea72 wrote:

if youre property is being marketed through an agency, then no matter where the buyer comes from, the agency will expect their fee.

the only way to avoid this is once your agreement time is up, you cancel it, and then you are free to sell to whoever you want (although most agents still put a time clause in their contracts, where you cant sell with 6wks of termination of contract)

Flea

Not sure I'm in agreement here. We have a sole 'agency' agreement which ties us to only use this agent to market our house during the term of contract. This does not stop us selling privately, so long as the seller has not come through the agent, or any other agent.

I haven't told agent about prospective private sale, will wait and see who offers what, and take it from there. But, if offers are close will go privately so as to avoid agent fees. I don't for one minute expect the agent to be happy about it, but cannot see what legal grounds they've got to complain, so long as I haven't used another agent, or my buyer was introduced through them.

courtjester

flea72 - sorry that's entirely wrong, it purely depends on the contract.

A SOLE AGENCY agreement means only one agent, it doesn't mean the vendor can't sell privately.

A SOLE SELLING RIGHTS agreement (clearly marked as such) means that only the agent can sell the property and a commission is due if the property is sold to anyone during the period of contract (this may be what flea72 has in mind, but it is not the common form of agency contract most people have).

BFJ is right.

The only thing you need to review is whether your sole agency contract has a term including the phrase "ready, willing and able buyer...". This clause does not change the rule that the agent can't charge you on the sale to a private buyer, but it does mean that if the agent introduces their own buyer, who is ready and able to proceed with the sale, that's all theyneed to do to earn their commission - even if you don't sell to that buyer.

As long as you don't have this clause, you are in the clear as far as private buyers are concerned. You should never accept this type of (unfair but legal) clause in an agents contract and make sure it is struck out before signing any such agreement with an agent.