Should I pay 50% of Estate Agents Fee ???

notrippedoff

I am trying to purchase my ex partners share in the property we jointly own. She disagrees with the RICS valuation that we obtain stating it was 10% below market value. I've tried all sorts but she will not listen.

I am about to agree to putting it on the market even though I do NOT want to sell it. I have said that if we achieve the value she thinks it's worth then great I will sell as it's more than we bought it for in 2007(pre downturn....).

If the only offers we receive are in line with the RICS valuation then I have said I will offer her £50 more and transfer the title of ownership via Land Registry to myself. The Estate agent is saying that if this is the case they still want £2,200!

I am thinking that if we both sell to a third party then I am heppy to cover half the fee. If I buy and she sells why should I pay the agent 50% of £2,200 as I am the buyer?

What do you think, am I right or wrong?

mrginge

I don't see how it makes any difference who buys it. You both pay half.

G_M

mrginge wrote: »

I don't see how it makes any difference who buys it. You both pay half.

Not is she were to sell to him- no EA involved.

How much extra does she want above the valuation you have (in £)? Do the EA fees not wipe some/most/all of it out?

mrginge

G_M wrote: »

Not is she were to sell to him- no EA involved.

How much extra does she want above the valuation you have (in £)? Do the EA fees not wipe some/most/all of it out?

But there is an ea involved. They are finding a buyer and then the OP is going to gazump for £50.
This ' deal ' only happens if the ea finds a buyer.

In those circumstances I don't see how it is fair to say that the ea has not earned their fee, even though the ultimate buyer is the OP.

In fact, what is the incentive for the ea in these circumstances, as under the op's plan the ea would only receive a fee if they sold the house for more than the RICS valuation.

notrippedoff

Don't doubt the Agent is due a fee but should I have to pay half of it if I buy it or should she pay it in full as she has sold and I have bought? She wanted the Estate agent not me. If we both sell to a third party I'm happy for the EA to get fee and for me to contribute half obviously.

I'm thinking of asking her to state in writing that if we do a transfer via Land Registry then she covers EA's fee.

notrippedoff

EA fee = £3.5k all in with legals
RICS VALE = £205k
ASKING PRICE = £230k

I think it's worth £210k and would happily pay the equivalent of that to her this week, she is adamant it will sell at £230k

googler

notrippedoff wrote: »

I am trying to purchase my ex partners share in the property we jointly own. She disagrees with the RICS valuation that we obtain stating it was 10% below market value. I've tried all sorts but she will not listen.

There's a reason the RICS guys have the letters after their name. What letters does your ex have after her name, that better qualifies her to determine the value of a house than an RICS surveyor?

I am about to agree to putting it on the market even though I do NOT want to sell it. I have said that if we achieve the value she thinks it's worth then great I will sell as it's more than we bought it for in 2007(pre downturn....).

If the only offers we receive are in line with the RICS valuation then I have said I will offer her £50 more and transfer the title of ownership via Land Registry to myself. The Estate agent is saying that if this is the case they still want £2,200!

I am thinking that if we both sell to a third party then I am happy to cover half the fee. If I buy and she sells why should I pay the agent 50% of £2,200 as I am the buyer?

You're hiring the EA as joint owners. If the EA finds a buyer you will sell it to that buyer as joint owners. Therefore it's reasonable you each pay half the fee.

If you could only agree the value of the house with the aid of a suitably qualified person, you wouldn't need the EA anyway. I wonder what kind of qualified person that might be...?

mrginge

notrippedoff wrote: »

Don't doubt the Agent is due a fee but should I have to pay half of it if I buy it or should she pay it in full as she has sold and I have bought? She wanted the Estate agent not me. If we both sell to a third party I'm happy for the EA to get fee and for me to contribute half obviously.

I'm thinking of asking her to state in writing that if we do a transfer via Land Registry then she covers EA's fee.

Can she legally sell without your signature?
Course not. You are BOTH selling.

Anyway if you can get her to agree to that good on you.

Alternatively you could offer to market the property for a set period, after which you buy it at the lower price. That way you can come off the market and do the transfer without incurring any ea fees.

G_M

Have you (or the surveyor, or your ex) searched local sale prices? What are similar properties actually selling for?

ValHaller

notrippedoff wrote: »

If the only offers we receive are in line with the RICS valuation then I have said I will offer her £50 more and transfer the title of ownership via Land Registry to myself. The Estate agent is saying that if this is the case they still want £2,200!

I am thinking that if we both sell to a third party then I am heppy to cover half the fee. If I buy and she sells why should I pay the agent 50% of £2,200 as I am the buyer?

What do you think, am I right or wrong?

I think to a large extent you are right. But everyone needs to be putting their money where their mouth is.

• The proposition which should be put to the EA is that if they are so bl**dy g**d, then they will have no problem finding their fee from the excess over the RICS valuation.
• The proposition which should be put to the ex is that if she thinks it will fetch more than the RICS valuation, by at least the EA fee, she should underwrite the cost of the EA in full
• The proposition which should be put to you is that if you think the RICS valuation is the right valuation, you should limit your take from the sale to half of that value. And if you are unwilling to let it go to the EA, you should either accept any higher offer or you should match it without reduction for the EA fee and ex should accept as above.

It has unpalatable issues for all parties but the matter will only be sorted when everyone sees what is unpalatable about their own position to the others.

bitsandpieces

Can you get an agreement with the EA where they get their fee only if they introduce the buyer - and not if you buy (or on the off chance that you find a buyer through other channels)? If you can do this, I'd be upfront with the EA that you need to get more than - say - £212,500 in order to sell through them. If they don't think it's worth their while marketing on these terms, that strongly suggests that your offer is a fair one!

If EA refuses to market on these terms, hopefully your partner will see sense. If not, can you throw the ball back in your partner's court? Perhaps put it up through housenetwork or something for an agreed period, to see if there are any offers?