Home Buyer Reservation Fee - do I legally need to pay this?

mrginge

Wow thanks Shelton and Lines for your innovative approach to ripping off house buyers.

I will definitely be listing all my future properties with you so you can dissuade any potential purchaser before they’ve even set foot through the door.

mrginge

Strangely enough, Mr Richard Shelton of Shelton and Lines appears somewhat dismissive of estate agents who charge up front fees.

https://www.sheltonandlines.co.uk/news/article/38/warning-up-front-estate-agency-fees-do-not-add-up

Of course, these are different up front fees though aren’t they.

The last thing Richie wants is for people to be taken in by lazy agents who have got peoples cash without having to do anything for it.

You tell em Rich

AdrianC

<shrug> The vendor has listed the property with that agent, in full knowledge of that part of their sales process.

chunkytfg

I would guess the agent uses low commission fees to attract vendors and then tops up the shortfall with this fee?

AdrianC

chunkytfg wrote: »

I would guess the agent uses low commission fees to attract vendors and then tops up the shortfall with this fee?

Academic for a buyer, really.

A successful offer through this agent will cost £240. If you want to buy it, and are happy to view that £240 as part of the purchase price, the fact that other buyers may be dissuaded might mean you get it a bit cheaper. At the very least, offer £240 less than you otherwise would have done.

mrginge

AdrianC wrote: »

Academic for a buyer, really.

A successful offer through this agent will cost £240. If you want to buy it, and are happy to view that £240 as part of the purchase price, the fact that other buyers may be dissuaded might mean you get it a bit cheaper. At the very least, offer £240 less than you otherwise would have done.

Except it’s not part of the purchase price, it’s a sunk cost

AnotherJoe

AdrianC wrote: »

Academic for a buyer, really.

A successful offer through this agent will cost £240. If you want to buy it, and are happy to view that £240 as part of the purchase price, the fact that other buyers may be dissuaded might mean you get it a bit cheaper. At the very least, offer £240 less than you otherwise would have done.

True but only if successful. . However, any defects found during the survey which lead to you requiring a lower price and are not "structural" (which very few will be) and which the vendor refuses to negotiate on leads to the loss of the £240.

I wonder if there's a loophole in their one-sided contract in that case ? If you stop responding to the EA then eventually the vendor will pull the deal. Then you get your money back

SmashedAvacado

Your commitment to buying is shown by promptly instructing solicitors and getting on with searches. Nothing else.

That’s the message you should pass on to the agent