Rogue Selling Agents?

lkate

My parents are trying to change the estate agents they are selling their house with. However they first EAs are threatening them with a 3% fee regardless if they are the EA to sell their house or not. And also that they cannot take their house off the market without 28 days notice, or go to another EA before 20 weeks of their contract with them.

There have been numerous fudge ups which have led my parents to change EAs. They were promised a lot and were by far the highest valuation too. But they haven't lived up to their promises and have been incredibly incompetent.

Does anyone know what the complaints process is, or whether there is a "get out clause" for my parents. As far as we see it, they have not held up their end of the contract and have not done their jobs, hence why they want someone more competent.

Update:
Just to clarify, the 3% fee is only if the house is sold through another agent. Their selling fee is 1%.

Cakeguts

What does the contract that your parents signed say? Also it is common knowledge that houses are only worth what someone will pay for them not the imaginary number that an estate agent comes up with.

Start again. What is it that these agents haven't done? They haven't managed to sell a house with an inflated valuation and what else?

eddddy

Unfortunately, your parents signed the contract for a minimum 20 week period, so they are bound by it.

The EA would have to very fundamentally breach the contract for your parents to be able to nullify the contract.

If the house doesn't sell, give the 4 weeks written notice at 16 weeks.

And negotiate terms with the next EA before signing the contract. Aim for 8 weeks minimum contract period, and perhaps 1% to 1.5% fee - depending on the value of the property.

googler

lkate wrote: »

My parents are trying to change the estate agents they are selling their house with. However they first EAs are threatening them with a 3% fee regardless if they are the EA to sell their house or not. And also that they cannot take their house off the market without 28 days notice, or go to another EA before 20 weeks of their contract with them.

If that's what their contract with the EA says ...

Does anyone know what the complaints process is, or whether there is a "get out clause" for my parents. As far as we see it, they have not held up their end of the contract and have not done their jobs, hence why they want someone more competent.

The complaints process is to go through the EA's complaints process, should they have one. Even if the EA is a member of the Ombudsman scheme, the Ombudsman won't take any interest in their case unless they've exhausted this avenue first.

In what way have the EAs breached the contract?

eddddy

lkate wrote: »

There have been numerous fudge ups which have led my parents to change EAs.

I just re-read your post.

Have your parents signed another contract with a second EA, whilst the contract with the first EA is still active?

Then they have problems!

Have they signed with the second EA within the last 14 days? Was the contract signed at their home? If 'yes' to both, they should cancel the contract with the second EA immediately - as they have a cooling off period.

csgohan4

the problem here your parents went with the one that (Over)valued their house the most. 3% fee is also very high, usually 1% around here.


So in all the common denominator here is the price not the EA. If your parents don't reduce the price your house will not sell if it's been on the market with no viewings for some time, new or old EA otherwise.

G_M

lkate wrote: »

My parents are trying to change the estate agents they are selling their house with. However they first EAs are threatening them with a 3% fee regardless if they are the EA to sell their house or not. And also that they cannot take their house off the market without 28 days notice, or go to another EA before 20 weeks of their contract with them.

Have you read the contract they signed?

Typically there is a minimum contract period. This could be anything from 6 weeks to ..... the sky's the limit - but it sounds like it is 20 weeks. In that case the seller cannot move agent for 20 weeks.

Typically also there is a notice period to end the contract (remember, the 20 weeks is the minimum period). This could be 2 weeks or 6 weeks etc. It sounds like it is 28 days.

If a buyer is found while the contract is still in force (ie before the minimum period AND notice period have expired), then the fee is payable irrespective of which agent finds the buyer.

lkate

eddddy wrote: »

I just re-read your post.

Have your parents signed another contract with a second EA, whilst the contract with the first EA is still active?

Then they have problems!

Have they signed with the second EA within the last 14 days? Was the contract signed at their home? If 'yes' to both, they should cancel the contract with the second EA immediately - as they have a cooling off period.

No, thankfully they haven't signed with the other EA, although they started the process.

lkate

csgohan4 wrote: »

the problem here your parents went with the one that (Over)valued their house the most. 3% fee is also very high, usually 1% around here.


So in all the common denominator here is the price not the EA. If your parents don't reduce the price your house will not sell if it's been on the market with no viewings for some time, new or old EA otherwise.

Hi, sorry I should have explained. Their selling fee is only 1%, however if they sell through another agent, they expect 3% of the selling price.

lkate

Cakeguts wrote: »

What does the contract that your parents signed say? Also it is common knowledge that houses are only worth what someone will pay for them not the imaginary number that an estate agent comes up with.

Start again. What is it that these agents haven't done? They haven't managed to sell a house with an inflated valuation and what else?

Firstly, the agent set up the rightmove page and told them that they would have a launch day on a particular weekend. He also told them that he had loads of buyers interested in their area and for similar houses to theirs. Then he just disappeared and my parents weren't informed that he had left the agency. So they heard nothing from them and nobody was working on selling the house for about two weeks. And by this time their cooling off period had elapsed.

There was also a lot of mistakes and information missing from the rightmove page and I have lost count of how many times my parents have had to call them to ask them to fix the mistakes or add additional info that had been agreed between them and the agent beforehand.

My parents then received a call from the new selling agent saying they wanted to hold a launch day. Obviously they were very confused as there was clearly no pass over between agents. The new agent set up another launch day and my parents rearranged their plans to be out of the house on this day. The agent was crap, never kept my parents updated on what was happening. My mum had to call them the day before to ask what was happening and they were told they had one viewing...... they never even showed on the launch day or even call to say the viewing was cancelled.

My parents have asked for feedback as to why there has been no viewing, or updates from the agents. They have said the price is the problem... the price that they suggested! Hence why my parents feel as though they have over-inflated the price to get business from my parents.

My parents have tried to be as polite and tolerant as they can and it was the second failed launch day that did it for them. And they just no longer trust them to do a decent job selling their house. Unfortunately they still have 16 weeks left of the contract and it seems by the comments that there is no way for them to get out of it.

eddddy

lkate wrote: »

Hi, sorry I should have explained. Their selling fee is only 1%, however if they sell through another agent, they expect 3% of the selling price.

I suspect you might be confused.

I'd guess this is the case:

- The EA's sole agency rate is 1% and their multi-agency rate is 3%. Those rates aren't too unusual.

- If your parents have multiple agents, whichever EA gets the sale would get the 3% - the others would get nothing.

But your parents are tied into their sole agency contract for 20 weeks. So the best advice is probably to stick with it - and tell them never to sign a 20 week contract again!