property purchase, who's paying who !?

Trow

loanranger wrote:

As there is usually "no sale no fee" then it is the buyer (me) who is paying the agent ! As if the property doesn't sell then the agent get's nothing ! So shouldn't he be looking after my interests?!

In addition to what has been said I would like to add that the negotiation that you take on with the Agent depends ENTIRELY on the vendors approval, as it is their property that is being sold.

The agent is appointed by the vendor for the vendor. The money comes from the value of the sale of the house - so why should the Agent look after the interests of one buyer when the vendor might not decide to sell to that particular buyer because he doesn't like the colour of their hair......

Your point

"Vendor is a client of Estate Agent
Buyer is a client of Vendor

It follows that the Buyer is a client of the Estate Agent! "

Is a bit odd - do you think you have a contract with the wholesaler because you got goods from the shop that the wholesaler supplies?

mandi

Sorry to see your so confused , but its quite simple, as Lush has explained.., The no sale No fee is between the agent,and the seller, it has nothing to do with buyer..All it means is, that if the house doesnt sell , the owner doesnt have to pay the agent for trying to sell it.

Simple really

loanranger_4

Thanks all. I understand where everyone is coming from. Really !

When a property is sold BOTH Vendor and Agent get paid.

The vendor will end up with the property price minus the Agents' fee. correct?

Where does the Agents' fee come from ?

IvanOpinion

It is none of the buyers business were the fee comes from. The vendor may have budgetted it within the value they put on their house or they may decide that they are lifting it from savings or they may take a spearate loan out for it or they may add it onto their next mortgage ... it is irrelevant to the buyer.

What was the nature of your argument with the estate agent? I hope you did not ask for a reduction in their commission because, following your line of argument they may well turn round and say we made a mistake and you have to pay another £2000 because we did not charge enough commission.

Do you think that you are also paying for the vendors solicitor fees, their removal fees, their packing fees etc. etc. these are also part of the vendors costs. On the other hand maybe the vendor can claim to be paying for the buyers stamp duty and/or surveys because they knocked a couple of grand of the house.

Whether or not you like it the agent is (supposed to be) working on behalf of the seller - the buyer is no more than someone making offers on the house (not the associated fees). I honestly think you are entering into a 'non argument'.

Ivan

andy88_2

IvanOpinion wrote:

I honestly think you are entering into a 'non argument'.

and so do I

loanranger_4

Thanks IvanOpinion.

I see your point about the vendors solicitors fees, stamp duty etc. I also believe that I would be paying for the sellers Bentley ! (Only kidding!)

My vent is based on argument with the Estate Agent was about some of the things he said, being a good EA he of course completely denied it (fortunately we did not discuss his commision as he would have had a rude awakening! ).

I expected some integrity from him, but now know why they have such a bad reputation.

Thanks

mandi

The agents fee comes from the owner of the property once its sold, usually the fee is deducted by their solicitor on completion of the sale from any profit made ..

hope that you understand, and good luck with your purchase

lush_walrus

loanranger wrote:

Thanks all. I understand where everyone is coming from. Really !

When a property is sold BOTH Vendor and Agent get paid.

The vendor will end up with the property price minus the Agents' fee. correct?

Where does the Agents' fee come from ?

It is not always the case that the money comes from the buyers money at all. It is possible to pay the agent cash at the point of completion. The only reason the money is taken from the buyers money is to keep the sale simple. The solicitor will happily not provide the funds to the agent if you wish, and tell them that you are to pay via another method, which incidently some people, myself one of them!

It is also possible, though not ethical, to not pay at all if you are that way inclinded....

So if we follow your thread of the relationships between buyer and agent. If the vendor decides not to pay the agent, by basically bunking paying the fee, then the agent can charge the buyer!!!!

Strangely in all the time I have run and owned agencys this has never happened, and wise and money orientated as agents are, if there was a way to get the fee legitimately from the buyer in that way...Beleive me they would.

Go to an agent, get a contract from them and read the wording, I guarantee you the contract will be written very carefully to ensure that

1. Moneys are only due on completion of sale.

2. Money is only due from the vendor

If you can find a contract that states differently, then take it to trading standards, and that agent will need to reword their contract IMEDIATELY

Contract Law is very specific to relationships between parties...

lush_walrus

loanranger wrote:

Thanks IvanOpinion.

I see your point about the vendors solicitors fees, stamp duty etc. I also believe that I would be paying for the sellers Bentley ! (Only kidding!)

My vent is based on argument with the Estate Agent was about some of the things he said, being a good EA he of course completely denied it (fortunately we did not discuss his commision as he would have had a rude awakening! ).

I expected some integrity from him, but now know why they have such a bad reputation.

Thanks

Agents aren't all bad, think of it like this. If you are selling your house would you prefer:

A. The agent that you are paying £1000 min plus to work on your behalf and get the best price from the most reliable buyer, in the best position to see the sale through to ensure that you dont loose the house you are moving to.

Or

B. The agent to sell your house at the lowest price (IE best price for the buyer), remain loyal to that buyer even though they are moving very slow or have not sold their house or do not have a mortgage etc and risk you loosing the house you want to move to.

I know which I would prefer the agent to do!!!