Private Buyer - Do we pay Estate Agent' Commission?

jesilvaltd

We put our house on the market , received 3 offers at asking price through the EA marketing the property. We accepted one offer. We have now had a private buyer approach us with a slightly higher offer. He is the owner of the upstairs property and it was during a conversation relating to the sale of the house that he put in his offer. He is hoping that we accept the offer because we will not have to pay the EA commission. Is this true? Even though an offer has been put in and accepted by a buyer introduced by the EA? We will effectively be gazumping, I know, but no surveys have been done yet, so no financial loss on the buyers side. This could potentially save us £4700.

MissMotivation

Technically "If" the potential purchaser was not introduced via the EA, then no you wouldn't have to pay the fee's

However, an EA would class an introduction as someone who either saw a For Sale board, a newspaper advert, an internet advert or someone that was introduced to the property by the EA by any other means.

Morally (ha ha) do you not think the EA has done their job and got you 3 very good offers and are therefore entitled to their fee? I would be very careful if you do accept the private offer as a) how do you know he can afford the property? b) who is going to liase with solicitors, surveyors etc c) what happens if something goes wrong?

Catblue

Your EA will argue that the For Sale board triggered the interest of your neighbour. If you are friends with the neighbour and informed him of your decision to sell BEFORE the board went up, then how come he didn't put an offer in then? How come he waited until the board went up?

Also, if he is suggesting that you screw the EA over, what's to stop him gazundering you just around the time that you wish to exchange? Sounds like the type that would.

pinkshoes

You would have to wait until your agreed contract with the EA was up before accepting your neighbours offer, otherwise the EA will claim it was them that made him aware that the property was for sale, so they'll want their commission.

It may save you £4700, but then you will have the hassle of chasing up both solicitors. So long as you're prepared to do this, then I'd say go for it. Or at least tell the EA that you've upped your required price.

MissMotivation

pinkshoes wrote: »

You would have to wait until your agreed contract with the EA was up before accepting your neighbours offer, otherwise the EA will claim it was them that made him aware that the property was for sale, so they'll want their commission.

It may save you £4700, but then you will have the hassle of chasing up both solicitors. So long as you're prepared to do this, then I'd say go for it. Or at least tell the EA that you've upped your required price.

Incorrect! The EA would still be able to claim a fee as the purchaser would have been introduced during the term of their sole agency period!

jesilvaltd

The neighbour is also the freeholder on our leasehold (converted flat). His family used to own the whole property before, and he is very keen to get it back. I have had many dealings with him in the past and found him to be very honest, so I don't think he will gazunder us. Am I legally obliged to wait for the agency term to end? It runs for 3 months and we need to have it sold way before then.

Yasmin02

where abouts are you based? Do you think you maybe be able to ask for offers over the asking price from EA?

YASMIN

Catblue

jesilvaltd wrote: »

The neighbour is also the freeholder on our leasehold (converted flat). His family used to own the whole property before, and he is very keen to get it back. I have had many dealings with him in the past and found him to be very honest, so I don't think he will gazunder us. Am I legally obliged to wait for the agency term to end? It runs for 3 months and we need to have it sold way before then.

He's telling you to shaft the Estate Agent and you find him to be very honest?

Good luck in your dealings with him.

jesilvaltd

London. We could have gone the 'closed bid' route, considering we received 3 offers at asking price, but chose not to. I'd like to think that is because I am not greedy, but we also needed a fairly speedy sale.
I'm mostly concerned that because of the fact that we received and accepted an offer on the house through the EA, we would be obliged to pay the EA commission. I will not be lying, because the interested private buyer only found out about the property being sold from a conversation I had with him on the telephone about the leasehold/freehold. He did not see the 'For Sale' board, or any EA advertising.

mojo_jojo

Tell the EA that you've had a higher private offer and ask them if the buyers can match it.

mojo_jojo

You can also ask the EA if they can reduce their fees to help compensate because of the other party. If you put a bit of pressure on the EA they normally bend over backwards to help you as they don't want to lose a sale and make a profit - any profit is better than none.