"Public Notice" House Sales - My Experience

dinofabio

Hi

Just thought I'd share this EA experience with you.

I've been looking for a property for a couple of months. Somewhere for myself - I'm not an investor. I have property email alerts every 24 hours from various websites giving me the latest updates.

Anyway, received an email notifying me of a property that had was "now in receipt of an offer of£xxxxx, anyone wishing to place an offer must do so before exchange of contracts". The standard statement of a public notice sale. I'm not specifically looking for a repo or probate sale, this just happened to be one.

I liked the look of the property and did a bit of research. I guessed that it was a probate sale rather than a repo but can't be sure. The property was very well priced, so I immediately phoned the estate agents (small chain) to book a viewing.

I told the EA that I was in a good position, nothing to sell , cash buyer.

The EA were the key holders. They checked the diary. Wouldn't be able to let me view the property for over a week because of "staff shortages". I thought this was odd, but they assured me this was the earliest I could view. BTW I had told them that I was totally flexible with appointment times - any time, any date.

I turned up at the duly appointed time, and waited and waited. It was a no-show from the EA. After 25 mins gave the EA a call. The converation went along the lines of "Didn't anyone give you a call to tell you the appointment had been cancelled", "A member of staff is off sick and we have no one to open up for you", "We can only apologise". I didn't believe a word of it. I kept it polite asked them to rebook. Another check of the diary. The next viewing they could do was in a weeks time!! So it was going to take me two weeks to view a property, when I was totally flexible on the day and time; and they were the key holders!

I bit the bullet. A week later on the day I was going to view I received a call late morning from the EA. I was told the were calling me to cancel the afternoon viewing. The people who had made the offer had completed the exchange 15 mins ago!!

Without doubt, it had been a concerted effort by the EA from day one to stop anyone viewing the property and possible making a counter offer. They had a 'preferred buyer' and they were buying him time so that he could exchange unhindered. (in this case two weeks). It was a done deal, and I suspect it goes on every day of the week up and down the country.

I'm not wet behind the ears and know that EA's tip off "friends" etc when a good deal comes up, but I didn't realise they were so blatant with it.

How the EA's can say they have achieved the best possible price for their client I don't know. It's bordering on fraud.

Now I know I may have hated the property if I had ever been given the chance to view it, but it would have been nice to at least had the opportunity to give it the once over.

So, for others looking at buying a property for sale that maybe subject to a "Public Notice" (i.e repo, probate), be aware of the sort of "tricks" the estate agents may employ if they don't want you to view.

spannerzone

I'm quite sure this is how some people manage to build up their property empires.... by knowing the right estate agents.....'you scratch my back and I'll scratch yours'

It does indeed sound quite wrong and surely not the best deal for the estate or whoever the property was being sold for. It makes you want to find out the solictor and write to them advising them of what went on, assuming they weren't in on it of course

It might have been a case where a person went into a care home and the property was sold to finance this, possible the house was sold to a relative at a below market price but they had to show the local authorities that it was being marketed and the 'best' offer was accepted. The fact only one offer was made would be irrelevent and I guess if this was the case, the local authority wouldn't question the sale price if it wasn't too below market value as long as they get some cash.

poppysarah

Would you have paid more than the person buying it?

If so then the EA has not acted in the best interests of the vendor/bank trying to reclaim money.

If thats the case then contact the bank and kick up a fuss.

katejo

I have seen a quite a few adverts of this type locally. I always thought that they must be repossessions. I wonder whether the owners know that the agents are acting in this way. If I had to give up my house, I would want the best price possible for it.

silvercar

katejo wrote: »

I have seen a quite a few adverts of this type locally. I always thought that they must be repossessions. I wonder whether the owners know that the agents are acting in this way. If I had to give up my house, I would want the best price possible for it.

I agree, but if someone is likely to go bankrupt and in negative equity there are not bothered what price it goes for. Same if it is all going to pay the LA care fees.

silvercar

I inquired after a house near me that was marketed as £240+k, the estate agent said that it was likely to go for over £300k and they were discouraging anyone not prepared for that. It completed two weeks later to a developer.

poolboy

I have been watching one of these locally as I may have bought it. Sadly a similar story - no cancelled viewings but the ea really don't market them.

In this case it was super cheap, nicely refurbed. Poor vendor paid 205 in 2004 & the offer was 165 in 2011. I suspect the refurb was 10k at least so that's a whopping 50k hit.

I really feel for the vendor as that was not the best price they could have achieved & someone has to pay the shortfall.

meercatsunited

this is normal practice where the survey has already been completed and its usually advertised this way because of a repossion. And usually by this stage the property is being sold for less than the market value.

can you imagine another offer of an extra £1k is placed by another buyer, who then has a survey and along comes another buyer offering a little more and it goes on, eventually one of them would be successful but in the meantime the poor person who has had their home repossed waits while accrueing further monthly mortgage debt.

the EA may successfully obtain more money from the first buyer who has already paid for the survey because he does not want to lose it but there is no guarantee.

James129

Had dealings with Bridgefords estage agency who used similar tactics.

A repo was advertised so I called in to book a viewing. Agent said I'd need to see their mortgage advisor to see if I was in position to buy that property and it was the vendor who stipulated that.

So I went to their office with all the proof, only for the mortgage advisor to try his best to convince me to take mortgage product through them. He didn't even bother looking at the documents I brought with me.

And after spending more than half an hour with them, the agent who showed me the property said I'd be their preferred buyer if I decide to get a mortgage through them and they will cancel other viewings citing silly reasons like they have misplaced the keys etc.

DVardysShadow

James129 wrote: »

Had dealings with Bridgefords estage agency who used similar tactics.

A repo was advertised so I called in to book a viewing. Agent said I'd need to see their mortgage advisor to see if I was in position to buy that property and it was the vendor who stipulated that.

So I went to their office with all the proof, only for the mortgage advisor to try his best to convince me to take mortgage product through them. He didn't even bother looking at the documents I brought with me.

And after spending more than half an hour with them, the agent who showed me the property said I'd be their preferred buyer if I decide to get a mortgage through them and they will cancel other viewings citing silly reasons like they have misplaced the keys etc.

This will continue until some Estate Agent is caught redhanded and led off in handcuffs for defrauding the repo'd former owner.

Scotchnan

They are robbing tax payers all ways. We should all be concerned ..