Selling: Offer through agent and privately - how to play it?

G_M

Some strange responses above (apart from the 'friend'...'I'....)

If the contract is clearly a sole agency contract, and not sole selling rights.....

and there is clear evidence of how the buyer was introduced (via neighbour),....

then the agent would not be awarded their fee by a court (though they might still initially try to claim it though).

So in comaring the two offers, the seller coud take into account th financial saving of not going via the agent.

Mutton_Geoff

I have been to court over disputed agents fees and the court told me that "introduction by the agent" could be something as simple as them seeing a sign outside the house or a printed or internet ad. No personal contact with the agent was required! That was 10 years ago, so you might want to check whether this loose definition still applies.


When I terminated the agreement with the agent that eventually took me to court, I asked them to provide a list of those people whom they regarded as their introductions, either to me or directly to the new agents I appointed. They refused. It turned out the eventual purchaser had viewed the property through the first agent and put in an offer (that was never communicated to me).


Some estate agents operate on very marginal grounds to ensure their commissions.

saajan_12

If you're talking about the same buyer offering through the neighbour and the agent, then the EA is due their fee as they did the work and lead to a sale

However if

• you're talking about two buyers each offering the same amount
• the contract is not "sole selling rights"
• the buyer chosen was introduced by the neighbour and has not contacted the agent in relation to the property[\LIST]
  Then the fee wouldn't be due.
  
  As for next steps, you can't use the agent to negotiate with the private buyer directly as then they would be due their fee. So, you (the seller) would have to negotiate between the private buyer and the agent. I would tell the agent you have another offer for £x and whether then can get anymore out of their buyer as well as explaining the circumstances / proceedability.

G_M

Nearly agree!

saajan_12 wrote: »

If you're talking about the same buyer offering through the neighbour and the agent, then the EA is due their fee as they did the work and lead to a sale

However if

• you're talking about two buyers each offering the same amount
• the contract is not "sole selling rights"
• the buyer chosen was introduced by the neighbour and has not contacted the agent in relation to the property[\LIST]
  Then the fee wouldn't be due.
  
  As for next steps, you can't use the agent to negotiate with the private buyer directly as then they would be due their fee. So, you (the seller) would have to negotiate between the private buyer and [STRIKE]the agent[/STRIKE]yourself? (if you involve the agent in any negotiation with the private buyer, you'll need to pay the agent!). I would tell the agent you have another offer for £x and whether then can get anymore out of their buyer as well as explaining the circumstances / proceedability.

do163600

I would be tempted to refer the neighbours friend to the EA and let them handle the negotiations.

saajan_12

saajan_12 wrote: »

So, you (the seller) would have to negotiate between the private buyer and the agent.

G_M wrote: »

Nearly agree! yourself? (if you involve the agent in any negotiation with the private buyer, you'll need to pay the agent!)

I meant the agent talks to their buyer, and negotiates with the seller. So the conversation flow goes
EA's buyer <-> EA <-> seller <-> private buyer

The agent doesn't need to talk to the private buyer, but the agent can try to negotiate with their own buyer, getting feedback on the other offer from the seller.

Comms69

Mutton_Geoff wrote: »

I have been to court over disputed agents fees and the court told me that "introduction by the agent" could be something as simple as them seeing a sign outside the house or a printed or internet ad. No personal contact with the agent was required! That was 10 years ago, so you might want to check whether this loose definition still applies. - Absolutely, it's no different to seeing it on rightmove or the paper or a leaflet drop.


When I terminated the agreement with the agent that eventually took me to court, I asked them to provide a list of those people whom they regarded as their introductions, either to me or directly to the new agents I appointed. They refused. It turned out the eventual purchaser had viewed the property through the first agent and put in an offer (that was never communicated to me).


Some estate agents operate on very marginal grounds to ensure their commissions.

It's perfectly reasonable. You pay the agent to market the property. That marketing almost always includes a for sale sign.

steampowered

The estate agency contract will have a clause which sets out when the seller is liable to pay the estate agent's fees.

Your friend needs to carefully read the T&Cs.

Many estate agency contracts have a clause which says you will be liable to pay the fee, if the property is sold while the property is listed through them.

It is wrong to assume that your friend will not be liable to pay the fee in relation to a private sale.