5K estate agent fee for BUYER on 220K house

katejo

This week I have noticed that 2 local estate agents are using this tender plus fee for buyer method while another has put a full page ad in the local paper to warn buyers off this practice and to reassure them that they have no plans to use it.

I can't see how it works together with the old buyer beware as the agent is working for the seller who pays. Where do loyalties lie ? I am not selling but would avoid any agent using this method.

googler

Many territories use Buyer Agents, but their markets grew up with BOTH agents, so nobody is disadvantaged by the process.

Adopting buyer fees on a piecemeal basis like this immediately disadvantages those who've just left a property where they paid a standard seller fee, and have to pay a buyer fee here.

If they'd not paid a seller fee on their sale (because their buyer paid), and were paying a buyer fee here, they wouldn't be disadvantaged.



If enough buyers steer clear of agents operating this system, and the properties don't sell as a result (or the buyer drops their offer by the level of buyer's fee or more), the market will soon drive them back to seller fees only.

googler

katejo wrote: »

I can't see how it works together with the old buyer beware as the agent is working for the seller who pays. Where do loyalties lie ? I am not selling but would avoid any agent using this method.

They're saying there's no service element to the buyer's fee.

SG27

I would have either told the agent he can f*** right off and looked elsewhere or if I really liked the house seeing as now the price of that house has just gone up 2% + vat then reduce my offer by this amount.

Either way I would be very !!!!ed off. Id actually be tempted to boycott the agent entirely and ignore any other properties they are marketing.

katejo

googler wrote: »

They're saying there's no service element to the buyer's fee.

Yes I noticed that after writing my previous bit. What happens if the seller pulls out just before exchange of contracts ? Does the buyer still lose their fee?

googler

katejo wrote: »

Yes I noticed that after writing my previous bit. What happens if the seller pulls out just before exchange of contracts ? Does the buyer still lose their fee?

From the OP ...

KnightSmile wrote: »

.... will be payable if the tender bid is accepted and a sale results at any time. The fee is payable for execution of the introduction only, not for any advice or service to the buyer.

dacouch

googler wrote: »

http://www.oft.gov.uk/about-the-oft/legal-powers/legal/estate-agents-act/handling-negotiations#named1

"You must give your clients written details of all offers received from potential buyers. This information must be passed on promptly. It can be sent by hand, post or fax.

You should keep a written record of all offers that you receive.

If your client tells you in writing that it isn't necessary to pass on certain offers, you don't have to write in those circumstances. For example, this could happen if the client doesn't want you to write with offers below a specific price level."

Darn. If they can claim they have explicit instruction from the seller not to accept offers which aren't in exactly the form you describe, that gives them licence to ignore regular offers. And we can't tell that without seeing the (confidential) contract between seller and agent.

It was reported about in the Standard last week http://www.standard.co.uk/news/london/estate-agents-charging-thousands-in-new-fees-in-hotspots-such-as-walthamstow-9176108.html

Pixie5740

I have no idea about the legalities but this sounds absolutely scandalous :mad:

KnightSmile

I agree it is not a great situation but estate agents can get away with it in a buoyant market.

I will wait and see whether I'm successful with my bid before I worry about paying this bloomin fee.

da_rule

Is this just a way for the seller to avoid paying fees? I.e. is it making the buyer liable for estate agent fees that the seller would usually pay?