Missing out the middle man (estate agents)

james.hope87

Hi all,

I am trying to out my buy to let house on the market.

I have a free valuation from an estate agent but the tenants are making noises like they want to put in an offer.

I guess I can accept directly without informing the estate agents?

If they give me an offer I am willing to accept then I guess I just tell the agents that I don't want them to advertise it for me?

Are there any issues associated with this?

AdrianC

You say you've had a "valuation" from an agent. Is that all? You've not signed any sale contract?

If you have signed a contract, then you need to see whether that contract entitles them to commission if you sell outside their marketing. Make them aware that the tenants might be interested asap, and get them to agree zero commission in that instance.

HouseBuyer77

Assuming you haven't signed a contract yet, then shouldn't be a problem.

If you have, read the contract, you might still owe the EA money.

Do you manage the property directly or use an agent? Agents often put a clause on their contracts saying they get a proportion of any sale if you sell it to the tenants.

saajan_12

As mentioned, if you use a lettings agent for your tenants, they may want a fee if you sell to the tenants they found - check your contract!

In ADDITION to this, I see 3 cases.
1) If you have signed a contract with an EA to sell -> they could be owed a fee for any sale agreed during their period if they have sole selling rights for example

2) If no sales contract and you think the tenant is proceedable -> you don't have to say anything (maybe a 'no thanks' if they follow up)

3) If no sales contract and you'd like more options -> inform the EA you already have a potential buyer, and negotiate a contract so you pay them zero commission if you sell to the tenant.

lee111s

As above if you've not signed anything then you've nothing to pay.

I was in a similar poisiton, had the house valued and the day before the EA was due to come back for me to sign our friends said they wanted to buy the house.

We've now exchanged and complete in a few weeks.

G_M

As others have said, read your contracts - both any sales ontract with any estate agent and a letting contract with any leting agent involve.

Good suggestion from Saajan above: negotiate a sales contract where the agent only gets a fee if they introduce a buyer (other than the tenant) who you ultimately sells to for more than the tenant's offer.