Increasing the asking price of your property

PeteHi

googler wrote: »

So you merely want to put the price up so that you can keep it 'on the market' with your agent in order to avoid their termination/withdrawal from contract fee?

Without seeing the whole of your contract, it's hard to be definitive.... but later you ask "Not quite sure how that will stand up in court?" - if you're unwilling to pay their withdrawal fee, do you really want to pay court costs?

Is there a withdrawal fee payable if the EA terminates the contract, rather than you?

I'd happily pay court costs if I was found to be in the wrong. I just fail to see how I can be. Its them refusing my request and then expecting me to pay them for the pleasure :rotfl:

Oh and their fees are only payable if I withdraw from the market according to the contract. Im happy to keep it on, but at my price.


It seems a few on here are of the impression Im a shyster looking to rip off the poor local branch of a large estate agents. Thats far from the case and I should add I gave them £225 upfront to cover 'marketing costs' (2 ads in local paper and their standard A4 details), so its not like I'm leaving them out of pocket.

GDB2222

Unless there's something specific in the contract, I don't think the agent stands any chance whatsoever in court.

DVardysShadow

On first glance, I was thinking that the agent was being unreasonable. But with a bit more reflection, I think that the asking price is an implied part of the contract. The agent does his own valuation and suggests what price to put it on for. You engage the agent to sell it at that price and he puts in his effort based on that price. If you increase the price, the place becomes impossible to sell - you have moved the goal posts for the agent to claim his commission.

And if the other party to a contract does not agree with the goal posts being moved, they really don't have to accept it. In this case, when the OP moves the goal posts it is tantamount to OP cancelling the contract, even though it is the Agent who calls an end to it.

PeteHi

jjlandlord wrote: »

Which would then beg the question of the low initial asking price.

How did you decide on the new price? Just a number based on what you need?
To me this is a recipe for disappointment. Your agent's reluctance should indicate that he expect the increasing pricing to considerably reduce the interest in the property.

Of course, as others have pointed out, nothing prevents you from giving it a try. You might get lucky!

Yes, but as its my flat then surely I can ask for what I want. If they decide they dont want to market it at this price, then surely thats their perogative?

My question is whether there is an kind of property law that stipulates I should be responsible for their fees if they make such a decision?

GDB2222

There is no specific statute that deals with this particular case. It is simply a matter of general contract law. Dvardy thinks there is an implied term that you won't increase the asking price in the agency agreement that you signed. I don't agree, but if it went to court it would be a matter for the District Judge to decide.

There might be some case law (previous decided cases in a higher court), but I doubt it. In any case, probably neither side would be represented (as costs will not normally be awarded in these cases), so it's unlikely that either side will even know about any case law. It'll just be you and the estate agent arguing things out between you.

How much is the fee, anyway, and what happens if you leave the price unchanged but just make the place impossible to sell? (For example, leave your dirty socks lying around, and boil fish before viewings.)

PeteHi

DVardysShadow wrote: »

On first glance, I was thinking that the agent was being unreasonable. But with a bit more reflection, I think that the asking price is an implied part of the contract. The agent does his own valuation and suggests what price to put it on for. You engage the agent to sell it at that price and he puts in his effort based on that price. If you increase the price, the place becomes impossible to sell - you have moved the goal posts for the agent to claim his commission.

And if the other party to a contract does not agree with the goal posts being moved, they really don't have to accept it. In this case, when the OP moves the goal posts it is tantamount to OP cancelling the contract, even though it is the Agent who calls an end to it.

Interesting reply, thanks.

Ive got the contract here and it says "The property is to be marketed at an initial asking price of X and our fees are payable at 1.25% of the sale price, be it higher or lower than the initial asking price"

Note 'initial. Nowhere on it does it mention the valuation being revised up or down at any stage.

"Termination fee" "Should the client choose to terminate the agreement at any time then a fee of £250 + VAT will be payable within 28 days".


I'm not choosing to terminate it and don't appear to be breaking any asking price rules as set in their T&C's?

PeteHi

GDB2222 wrote: »

How much is the fee, anyway, and what happens if you leave the price unchanged but just make the place impossible to sell? (For example, leave your dirty socks lying around, and boil fish before viewings.)

:rotfl:

£250 + VAT


I'm happy to leave it on and when I get a new job reduce the price accordingly.

Still its their decision. Can I get MSE in prison ?

somethingcorporate

£250 to withdraw? what an absolute con.

How they stay in business is mind-boggling.

GDB2222

somethingcorporate wrote: »

£250 to withdraw? what an absolute con.

How they stay in business is mind-boggling.

They charge £225 up-front and £250 to withdraw. The alternative is that they charge £475 up-front.

There's an argument that an indefinite term for the contract is an unfair contract term, but it's all nonsense anyway. There's no way that the agency are going to spend an afternoon in court arguing about a dubious claim for just £250. They'll huff and puff now, but nothing will come of it.

PeteHi

GDB2222 wrote: »

They charge £225 up-front and £250 to withdraw. The alternative is that they charge £475 up-front.

There's an argument that an indefinite term for the contract is an unfair contract term, but it's all nonsense anyway. There's no way that the agency are going to spend an afternoon in court arguing about a dubious claim for just £250. They'll huff and puff now, but nothing will come of it.

cheers!

It looks like I'm not the only one in this situation;

http://forums.pepipoo.com/index.php?showtopic=65546&st=20

The withdrawal fee charge has NO expiry date and was not negotiable = i.e I can never take it off the market with them without paying them... if I sold the house in 50 years I'd still have to pay them = unfair contract.

Still doesnt remove the fact its them refusing to market it.