Property Finding Fee

jorpati

Hi all,

I am a FTB and have been viewing few properties at the moment. During one of my property viewing, I was told about Property Finding Service (£1500) by EA and they say this can help me find property quicker as they will dedicate more time for me finding property search and possibly help me to secure the bid (??). This sounded bit suspicious to me. I told him I will think about it and let him know.

I looked up about Property Finding Service and they seem to be genuine service but on a commercial level.

I was wondering if anyone had use similar kind of service before or had similar experience. I am completely new to property buying process and this was bit of shock how they were trying to "sell the bid" to me...

Thanks
J.

luvin_the_money

Are they asking for the fee upfront?

eddddy

Hmmm... I guess you need to ask them exactly what they do for the money.

Is it an upfront fee, or paid on completion? I suspect it's either immoral or a waste of money.

For example, if it's paid on completion, it may be that...

- They call you first when a new property comes on their books
- They push your offer harder because they get £1.5k extra if your offer is accepted.
.... e.g. The other guy offers £200k without a £1.5k finders fee, you offer £190k with a £1.5k finders fee - so the EA pushes your offer harder.

i.e. they are not acting in the seller's best interests. (But maybe you're OK with that.)

jimpix12

All you need to do is tell the agent (for free) what sort of property you want, and what sort you don't want, and then you'll see how useless they are. You tell them you want a 2 bed semi for £200k and they'll send you 4 bed flats at £300k. They are invariably useless.

Paying them £1500 to do this is barmy.

If you really want a buying agent to negotiate on a property that you like, then be prepared to fork out 3-5% of the agreed price to do it. As you're a FTBer it's unlikely you need someone to state your case, plenty of (free) advice on here and elsewhere on how to do it.

jbainbridge

Sounds like a waste of money ... unless you have £1500 to spare and genuinely can't spare the time to check Rightmove every day!

hazyjo

There's a near same thread on here - I can't find it. Can anyone help? Was about an EA fee for finding property. Tried a few words but no luck. Grrr.


Jx

System

Its a lot to pay for not very much service, unless they really do push your lower offer, I could imagine people going through with lesser purchases in haste with the wrong agent because they don't want to waste their £1500. I would certainly do your own searches before you pay them commission

stator

What a ridiculous waste of money.
I'm guessing they give priority to people stupid enough to pay this fee, but you're still only going to see properties on their books. Are they the only EA in the area?
It's quite possibly illegal if they aren't acting in the sellers best interest but are trying to force a sale to someone in a worse position because they've paid a £1500 fee. Reminds me of the way they try to get you to use their broker and conveyancer.

david1951

£1500 for 'finding' a property? I am in the wrong business

hazyjo

I'll find you something for £500


Jx

Freecall

Here you go, I've found you a place.

http://www.rightmove.co.uk/property-for-sale/property-60237971.html

.....and I only charge 10% (£450)

I'll PM you an invoice.

:beer: