Offer put in for ahouse marketed by an estate agent but seller works at same agency

ThePants999

Your impression of agents as being "in the middle" merely stems from the fact that they act in their own interests first and foremost. They work for the seller and will always try to get the best possible price for the seller, but they want the sale to happen (there's no commission on a sale that doesn't happen), so they will sometimes take actions that appear to be in the buyer's interest because they're actually in their own interest.

AnotherJoe

Caz3121 wrote: »

the agent works for the seller...their job is the get the best price for their client whether that be a co-worker or a complete stranger (better the sale price, the better their commission)

That's far too simplistic.

Their role is to get a sale. All things being equal the sale with the highest price but things arent usually equal so they may advise a vendor takes a lower offer if they think there is more chance of the deal going through.

The difference in commission between prices is generally going to be inconsequential and irrelevant compared to what the odds of a sale are from different buyers. So even if you take the view they are out for themselves with no other interest, that doesn't mean they always want the highest priced deal. . No point aiming for an extra tenner in commission if the chance the deal won't happen is greatly increased and they lose a £5k fee as a result.

ScorpiondeRooftrouser

AnotherJoe wrote: »

That's far too simplistic.

Their role is to get a sale. All things being equal the sale with the highest price but things arent usually equal so they may advise a vendor takes a lower offer if they think there is more chance of the deal going through.

The difference in commission between prices is generally going to be inconsequential and irrelevant compared to what the odds of a sale are from different buyers. So even if you take the view they are out for themselves with no other interest, that doesn't mean they always want the highest priced deal. . No point aiming for an extra tenner in commission if the chance the deal won't happen is greatly increased and they lose a £5k fee as a result.

No no no.

They are paid by the seller to get the best possible price. Not to get a sale at any price. Any idiot could sell a thing for half its value. It has nothing to do with what they want.

If they advise a seller to take a lower price just to get a sale and a commission, then they are being unethical. They are taking the seller's money and not doing their job.

ThePants999

And you think estate agents are paragons of ethical virtue!?

davidmcn

ScorpiondeRooftrouser wrote: »

They are paid by the seller to get the best possible price.

Or the best price reasonably practicable to obtain within the marketing period which the seller wishes to have. You'll never know whether you've achieved the best possible price, as there could be some idiot coming next week offering twice as much.

So like many professionals, it can be about advising their client what their expectations should reasonably be. Nevertheless, they're definitely on the seller's side.

AnotherJoe

ScorpiondeRooftrouser wrote: »

No no no.

They are paid by the seller to get the best possible price. Not to get a sale at any price. Any idiot could sell a thing for half its value. It has nothing to do with what they want.

If they advise a seller to take a lower price just to get a sale and a commission, then they are being unethical. They are taking the seller's money and not doing their job.

Who said "a sale at any price" ??? :mad: Dont make up what someone said. They are paid to get a sale and other factors come into play, not only price.

Here's an example. Offer is £250k from cash buyer, or £255k from someone in a chain with a AIP for a mortgage at 95% LTV. EA advises vendor to take the £250k from the cash buyer.

That is not "advising a seller to take a lower price just to get a sale and a commission" its "advising a seller on what most would think is the most prudent decision" , since the £255k might disappear like a Man U manager at the end of the season when the mortgage co undervalues the property or the buyer fails detailed checks or whatever.

Its not always only about price. In the above example there may be other factors - vendor of property may be looking to move quickly, or keep his place in a chain, or may simply favour higher certainty over higher theoretical price.

To boil it all just down to EA only wants highest price is ludicrously simplistic and wrong.

Thrugelmir

ScorpiondeRooftrouser wrote: »

They are paid by the seller to get the best possible price.

No. The vendor decides the ultimate selling price. The agent merely facilitates between the parties to agree a deal.

ScorpiondeRooftrouser

Thrugelmir wrote: »

No. The vendor decides the ultimate selling price. The agent merely facilitates between the parties to agree a deal.

Rubbish estate agents might. Good ones try and negotiate the buyer upwards, as far as possible. That's what they are being paid for.

ScorpiondeRooftrouser

AnotherJoe wrote: »

Who said "a sale at any price" ??? :mad: Dont make up what someone said. They are paid to get a sale and other factors come into play, not only price.

Here's an example. Offer is £250k from cash buyer, or £255k from someone in a chain with a AIP for a mortgage at 95% LTV. EA advises vendor to take the £250k from the cash buyer.

That is not "advising a seller to take a lower price just to get a sale and a commission" its "advising a seller on what most would think is the most prudent decision" , since the £255k might disappear like a Man U manager at the end of the season when the mortgage co undervalues the property or the buyer fails detailed checks or whatever.

Its not always only about price. In the above example there may be other factors - vendor of property may be looking to move quickly, or keep his place in a chain, or may simply favour higher certainty over higher theoretical price.

To boil it all just down to EA only wants highest price is ludicrously simplistic and wrong.

A good estate agent will try and get the cash buyer to offer £260k, regardless of circumstances. Only if that proves not to be possible should they advise the vendor to take the 250.

ScorpiondeRooftrouser

davidmcn wrote: »

Or the best price reasonably practicable to obtain within the marketing period which the seller wishes to have. You'll never know whether you've achieved the best possible price, as there could be some idiot coming next week offering twice as much.

So like many professionals, it can be about advising their client what their expectations should reasonably be. Nevertheless, they're definitely on the seller's side.

Whatever price the buyer offers, I expect an estate agent I am paying to try and get more money out of him. If he genuinely thinks the seller won't go higher, then of course he should tell me that.