Do Estate Agents select better buyers and get better prices?

benawhile

Hi
We are selling an inherited house and have been approached by a local buyer and have got to know him. My partner nonetheless wants to sell through an Estate Agent as he says they are better at selecting reliable buyers and something may go wrong with this guy. While I appreciate this may save us some work for a fee, my opinion is that we are just as likely to have trouble with a buyer from an Estate Agent.
We are using a Solicitor as well, surely they can advise about a client's ability to raise money just as well? Which one of us is right?
The house is in a desired area and should sell OK, but my partner also says that the Estate Agent can get buyers to raise the price if there are several interested buyers. Is this likely?

AndyBSG

I didn't know EA's did select the buyers as I thought they were legally required to pass on all offers, not filter out the ones they don't like the look of!

DaftyDuck

It is possible you'll get a better price through an agent. However, the EA will charge 1% to 1.75% (always negotiate) of the selling price. How have you arrived at a valuation? There's no reason not to get an agent involved, but have a clear written agreement that sale to your buyer will not involve commission. If the agent can rapidly produce a proceedable buyer at a better price, taking commission into account, then sell through them. Unless your buyer will match (or nearly match) the price.

Just make sure the local buyer is named on the agreement, and commission not due if sold to him.

ReadingTim

Part of an EAs role is to advertise the property to as many buyers as they can. This should lead to more interest, more offers and a higher price. And more options should something go wrong.

Why would you not choose this in favour of some chancer who's approached you direct? It's clear he's trying to bag a bargain, and that bargain's gonna come at your expense. Suggest you listen to your missus on this one.

csgohan4

Get free valuations from the potential EA's and see if it matches what your potential off street buyer is offering.


Bear in mind you will be saving EA fees

G_M

Agree with the above. Do both.

Make sure you have a 'sole agency' contract, not 'sole seller'. That way if you end up selling privately (buyer not introduced by the agent) you don't pay the agent fee.

If the agent finds buyers at better price including fees, you're quids in. If not, go back to your buyer.

Meanwhile keep your buyer on board - tell him he'll have a decision in, say, 2 weeks.

Dan-Dan

ReadingTim wrote: »

Part of an EAs role is to advertise the property to as many buyers as they can. This should lead to more interest, more offers and a higher price. And more options should something go wrong.

Why would you not choose this in favour of some chancer who's approached you direct? It's clear he's trying to bag a bargain, and that bargain's gonna come at your expense. Suggest you listen to your missus on this one.

Or , possibly , the `chancer` isnt in a chain , has offered a good , acceptable to the estate price , and can get it done at the cost of legals only , no need for slippery characters in shiny suits to darken anyones door

Always two sides to every story and my version is as likely as yours based on the info given

benawhile

AndyBSG: That is useful to know for a start, but in addition to having to pass on all bids, is the Agent likely to comment on who he thinks would be a better buyer?

benawhile

G_M: Thanks, I wasn't aware of sole selling and sole agency differences, though I think that my partner is more interested in the low fee rate, which is at the expense of a more restricted contract, (sole seller)

So I want to get an offer price from the buyer first, before, and avoiding, signing EA contract. We have a reasonable idea of the market price from provisional estimates by valuers.

andybenw

The one thing an estate agent will do is get your property on the estate agent website rightmove.

Their valuations may be well out. Some value high to get business, then get you to drop the price. Some value low by convincing you of a 'realistic price' , these want a quick sale to guarantee pocketing their percentage. Virtually all will back down from their valuations and market at a price the vendor tells them to.

However, they pass on all offers and make no real checks on buyers financial positions. Some pretend they are doing so in order to try and set up a buyer with their own in house mortgage broker, but will back down on refusal.

If the only thing stopping you is wondering if you have the right price, spend a couple of hundred on a surveyor to value it for you.


Edit... The estate agents want their percentage. All buyers will be good buyers. The only time they will comment will be in the unlikely event of multiple offers, which realistically would mean your price is too low.

DRP

Get valuations (three local agents), then decide your asking price.

IF the existing buyer doesn't want to pay that much then you can immediately instruct one of the [STRIKE]chancers[/STRIKE] estate agents.

Actually, IMO the most valuable thing an agent will do is the 'progression' after the offer is accepted. In my sales/purchases, they did a lot of leg work to get the deal done.

IF you/your partner are prepared to handle this yourself, then the £s savings can be substantial.