Negotiating directly with sellers - tips required!

Kelzabells

zappahey wrote: »

Though there is a perception that the agent is on the side of the seller, that's not strictly true.

The agent is as keen as anyone else to get the sale through as no sale means no fee. The agent has a role to play in persuading the seller to work on the price and make the sale happen, so while it's easy to see the agent as the enemy they can also be an ally.

That is quite a good point. Me and my hubby are currently looking to put our house on the market in the next couple of weeks, and move from a large-ish town to a Wiltshire village. We are viewing a house at the weekend but it's quite abit above the limit we can go to. If we did manage to sell ours quickly and put in an offer, we would be offering about £19,000 below the asking price. I am not getting my hopes up tbh, but I have been told by people who know the family that they haven't had any viewings and it's been on the market for months! It's a small village so unless you know the area or want that particular village, I believe houses are quite hard to sell and are on the market for literally months, sometimes a good year or so - whereas my area of the town I live in is quite sort-after and sell quite quickly. Generally within a month. My in-laws house over the road sold in 3 weeks and that needed work.

Now do I?
1. Try and go direct with the sellers and therefore at least save them the 2% agency fee (or whatever it is - unlikely be below 1.5% in this area),
or
2. Do I go through their agent, who may scoff and tell me - no chance? Or fight my corner because he's finding it very hard to shift the property?

It's a toughie, not sure how to play it.

hazyjo

Kelzabells wrote: »

Now do I?
1. Try and go direct with the sellers and therefore at least save them the 2% agency fee (or whatever it is - unlikely be below 1.5% in this area),
or
2. Do I go through their agent, who may scoff and tell me - no chance? Or fight my corner because he's finding it very hard to shift the property?

It's a toughie, not sure how to play it.

1. Erm, nope. If the EA found you as a buyer, they've earnt their fee. If I were a seller and you suggested that to me, I'd wonder what else you'd be prepared to do further down the line. Really not very ethical - just one word to describe it, there are plenty of others.

2. They have to put forward your offer (put it in writing after speaking with them). The buyer will either accept, negotiate or decline it. All you can do, I'm afraid. You shouldn't have to 'fight'. Go in lower and go up to your max. Leave offer on table and walk away if that's your max. They may well sell to you now or later.

Without knowing figures, it's hard to say if £19k is a large percentage of the asking price, so hard to comment...

Jx

Kelzabells

hazyjo wrote: »

1. Erm, nope. If the EA found you as a buyer, they've earnt their fee. If I were a seller and you suggested that to me, I'd wonder what else you'd be prepared to do further down the line. Really not very ethical - just one word to describe it, there are plenty of others.

2. They have to put forward your offer (put it in writing after speaking with them). The buyer will either accept, negotiate or decline it. All you can do, I'm afraid. You shouldn't have to 'fight'. Go in lower and go up to your max. Leave offer on table and walk away if that's your max. They may well sell to you now or later.

Without knowing figures, it's hard to say if £19k is a large percentage of the asking price, so hard to comment...

Jx

They haven't found me as a buyer though, I have found the house myself and contacted the agent to arrange a viewing. As far as I know the house has been on for absolutely months, so in all honesty they are not particularly doing a great job getting viewings in through the door. However, it is a village and I know they can be harder to shift.

I'm not holding out for miracles and if we do put in an offer it will be absolute as our funding won't be able to stretch to near the asking price, so we would walk away and leave the ball in their court - so to speak. I guess it all depends on how fast they want to sell, and possibly what their personal situation is. We can hold out, I want to move in August ideally so my Daughter can finish her school year.

zappahey

Kelzabells wrote: »

contacted the agent to arrange a viewing.

This bit means the fee is due.

If you hadn't contacted the agent at all, then it might have been arguable but they arranged the viewing therefore they introduced the buyer.

JQ.

Kelzabells wrote: »

They haven't found me as a buyer though, I have found the house myself and contacted the agent to arrange a viewing.

So how did you know it was for sale?

I agree with Hazyjo, if you came to me with that proposal, I'd be expecting you to chip the price later on in the process and it would definitely put me off dealing with you.

Kelzabells

Thats interesting, on some other threads with selling, many people are suggesting selling themselves to cut out agency fee's, or deal with sellers directly whenever possible. I do appreciate however that the agent got me the viewing, but it's on a Sunday and the agent isn't even going to be there anyway, its his 'day-off'. LOL. I'm a very honest person, don't get me wrong... I was thinking more of the seller, and seeing that they could save some money as we would likely be putting in a cheeky offer which I believe is expected at the moment, with it being a buyers market. In which case, it would likely also bite me in the backside as I'm selling too, so I guess we shall just have to wait and see what happens.

I have family in the area JQ, which is why we would like that village in particular. She found out the house was for sale as she knows the neighbour, and I also found it advertised on Rightmove.

hazyjo

Kelzabells wrote: »

They haven't found me as a buyer though, I have found the house myself and contacted the agent to arrange a viewing.

Their advertising found you as a buyer, I presume. Or did you randomly knock on the door/post a letter without seeing a newspaper ad/board/internet?

Jx

hazyjo

Kelzabells wrote: »

Thats interesting, on some other threads with selling, many people are suggesting selling themselves to cut out agency fee's, or deal with sellers directly whenever possible. I do appreciate however that the agent got me the viewing, but it's on a Sunday and the agent isn't even going to be there anyway, its his 'day-off'. LOL. I'm a very honest person, don't get me wrong... I was thinking more of the seller, and seeing that they could save some money as we would likely be putting in a cheeky offer which I believe is expected at the moment, with it being a buyers market. In which case, it would likely also bite me in the backside as I'm selling too, so I guess we shall just have to wait and see what happens.

I have family in the area JQ, which is why we would like that village in particular. She found out the house was for sale as she knows the neighbour, and I also found it advertised on Rightmove.

It is a different thing, selling without agents to cut out the fee. Fair enough. But when an agent has been instructed and find a buyer, they have earnt their fee.

Where have people been suggesting 'cutting out the agent'? Whether they deal with the sellers direct is another matter. That again is fine. But the sellers will still have to pay the EA.

Sometimes you will never meet the agent. Most viewings are conducted by the sellers (in my experience). They're there to find a buyer.

If you're selling, wait until you have a buyer before putting in an offer. You're not proceedable, so there's zilch point in making an offer on something. It might take 6 months, the house might still be on the market, the price might have dropped... why would they take it off the market if you're not proceedable? You're showing your cards by agreeing an offer before having an offer on yours as it gives you no more negotiating room if you say get a low offer on yours.

If you called the agent about the house, even if you heard about it through someone local, they get their fee. You should've approached them direct if that's the case.

Jx

Kelzabells

hazyjo wrote: »

Their advertising found you as a buyer, I presume. Or did you randomly knock on the door/post a letter without seeing a newspaper ad/board/internet?

Jx

Like I just said, I have family there, they know people in that cul-de-sac who told her it was for sale, then I proceeded to look online and it is on Rightmove, so I guess it's 50/50.

Saving them money was my only priority, of course if they accept my offer and are happy to go through their agents that is great, it was just an option I was questioning.

DVardysShadow

Kelzabells wrote: »

Like I just said, I have family there, they know people in that cul-de-sac who told her it was for sale, then I proceeded to look online and it is on Rightmove, so I guess it's 50/50.

Saving them money was my only priority, of course if they accept my offer and are happy to go through their agents that is great, it was just an option I was questioning.

Once it is on with an agent and people know that it is for sale because of the for sale board or the local press, you'll have a hard job to make out that it is all done without the agent.

As for saving the seller money, there is an agent's contract between seller and agent. And you are not party to that. So don't interfere! No good can come of it.