Estate Agent wanting to buy house when valuing it?

bluebell2014

My parents are considering selling their property and had it valued by an estate agent this week. However, the estate agent said there and then that he wanted to buy it for himself to convert into flats (its a very large property) and offered them a price. He then came back the next day with a valuation letter in person.

My parents are elderly and I am quite concerned about this. Isnt it a conflict of interest? My parents seem interested in his offer. It was a well known high street estate agent.

Plus they haven't even got any other valuations from any other agents to know if his offer is correct.

Thanks

Kynthia

I personally would recommend going with a different agent. Then if that agent wants to buy they can go through the new agent like any other buyer. That way you can be sure that there's no conflict of interest and that the valuation is impartial (as much as they ever are).

bluebell2014

Yes thats a very good idea. Thank you. I will ring them in the morning.

googler

bluebell2014 wrote: »

Isnt it a conflict of interest?

A conflict between what and what? If the EA buys it from them, he won't be marketing it to anyone.

My parents seem interested in his offer. It was a well known high street estate agent.

Plus they haven't even got any other valuations from any other agents to know if his offer is correct.

They can ask a surveyor or other agents to do so. What's the problem?

G_M

As is normal practice, get at least 3 valuations, do your own research on local property value, and decide what it is worth.

Totally ignore the valuation from this agent - he has a vested interest since he wishes to buy.

Once you've decided on a price either

* offer to sell privately to the 1st EA (at the price you have decided on, not him), and thus save EA selling fees

and/or

* place it on the market via another agent (and let him make an offer via them)

cloo

They definitely must get other valuations... the agent might be trying to wangle himself a convenient bargain.

princeofpounds

The agent does not appear to have been out of line here. If he was really trying to screw them I doubt he would have mentioned the flats plan.

They shouldn't use him as their agent however. But they can sell to him as long as they establish a value through other channels.

Contessa

Several years ago my circumstances changed so I needed to know how much my house would sell for (or get a rough idea ) I only contacted two EA's. The one from a large firm, who was selling a smaller house in the same street suggested several "improvements" and valued it lower than the other house.

The second agent from a small independent family business (and the son od the founder) loved my house, valued it higher than the other one in the street (as I had expected anyway as mine is quite a lot bigger)

I explained that I wasn't actually selling at the moment but just wanted to know roughly how much the house might be worth. He asked if he could "personally have first refusal if I decided to sell in the next six months"

Friends said this was just his marketing ploy. I'll never know as I wasn't ready to sell at the time. But it did encourage me-especially as the other EA had been so critical of my house.

Maybe two different marketing ploys?
1. This house is awful-so old fashioned, needs updating, won't appeal to buyers, isn't worth much.
2. Great house, I love it-so will buyers! Worth a lot.

Cynical-moi?

DaveTheMus

bluebell2014 wrote: »

Yes thats a very good idea. Thank you. I will ring them in the morning.

Get an independent surveyor to value the property and if the value tallies then sell it to the estate agent, minus the estate agents fees...

Could save them some money.

eddddy

Hi bluebell2014

It sounds like you want the house valued as both a development opportunity and as a family house (to see which is more valuable).

For this, you probably need to ask more 'sophisticated' EAs. Some EAs just sell houses and flats - and wouldn't be able to value (and market) a property for development very well.

Look for EAs that already sell development/investment property, or maybe EAs that are "Estate Agents and Chartered Surveyors".




(Or if you really want to maximise your profits, talk to architects and/or planning consultants about drawing up plans and and getting Planning Consent for the conversion.

Then sell it with Planning Consent in place.)