Offer to pay vendors EA fees?

StuHolmes

Hi,
In order to get the house we want when there is another interested party could we offer to pay the vendors EA fees? any problems re:stamp duty? (We are already over asking price).
And would the EA tell us what the rate of commission is before we make such an offer? I don't see why not as the other offer is with another agent so they stand to lose out if we don't get it!!

Any other tips to beat the competition??

clutton_2

why not just increase your offer rather than muck about with EA fees !!

cattie

First of all don't forget ea fee's are subject to 17.5% vat.

What price is the house up at & what have you offered or thinking of offering, only you don't make it clear why you are considering angles such as paying ea fee's rather than just upping your offer instead.

If it is a stamp duty issue then try offering at stamp duty threshold and 2 or 3k for fixtures & fittings. As long as you pick a reasonable believable amount for f&f then there should be no probs with the taxman. The ea should be able to guide you on this issue anyway.

I would think it extremely unlikely that any ea will divulge what percentage commision they are on for a vendor's property, as it is private info, drawn up by contract with ea & vendor.

StuHolmes

The reason i was thinking of this is that the other offer is with another EA who is probably charging a smaller commission and I'm worried that if both offers are similar the vendor will go with the other due to lower fees.

cattie

If both offers are similar then the vendor will in all likliehood go with the buyer they feels offers the fastest & smoothest transaction.

If they are listed with 2 ea's then they must be worried about shifting their property & trying to widen the options.

If you are in a strong position then stress this to your ea when making the offer & as I mentioned earlier, agreeing to add a couple of thousand extra for fixtures & fittings if necessary will still mean extra money in the vendors pocket if he doesn't accept your first offer & needs the added inducement of the f&f route.

The agent you are dealing with will be anxious to have the sale so should make you sound an appealing buyer anyway & list all the positives of having you as the purchaser.

Good luck anyway & don't forget to let us know how you get on.

reformedEffortMaker_2

StuHolmes-can you find out more about the other potential purchaser?

Sometimes its not the amount offered that sways a decision but a host of other things,....perhaps the length of your chain (if any), what you plan to use it for (i only won the house I offered on because I had stated I wanted to live in it, but my 'competition' had stated he wanted to rent it out after buying it which, for some reason annoyed the vendor),also, could you persuade your bank to give you a Agreement In Principle letter confirming they will lend you the money?.....you could show the vendor this letter and this will help prove you are not a time waster

I would also put your offer in writing if you could. Estate Agents love it, it makes you look real professional, and it gives you a chance to list all the reasons why the house should be yours in one place (i.e close to kids school, close to family, brings commute to work under an hour etc)

Failing that you could also offer a small deposit to the vendor, say £1000 (of course subject to survey etc and with solicitors guidance) using that as a guarantee, stating that if you pull out they can keep the cash, I've seen that work before

Or, you could ask the EA if they will set up a meeting with you and the vendor (perhaps in the EA's office/nearby coffee shop) where you are the most charming you have ever been and make them want to sell to you "because you are a nice guy", again something I have seen that worked??

If you dont fill comfortable doing any of that, then yeah, offer more money, but you run the risk of them coming back and asking for more. I would be careful to set yourself an upper limit to prevent yourself getting into a scary bidding war!

Good luck!

ixwood

Let them have it, and save yourself negative equity and financial ruin.

IMO.