Still worth using an EA?

eddddy

Sibz wrote: »

Using an EA to try and find a higher bidder would normally still include fees for covering EA's expenses, so while you may not need to pay them commission for a sale, you'd still be out of pocket for their work.

What you describe is usually described as a 'termination fee' or 'withdrawal fee'.

In my experience, most EAs don't charge that - and I always avoid EAs that do.

However, it does seem to vary in different parts of the country. In some areas 'withdrawal fees' do seem more common.

pphillips

G_M wrote: »

Why could it not 'work'?


So long as the EA contract

a) was not a sole selling contract and
b) had a minimum or fixed contract period of 2 weeks (or 3 or whatever you agree)
then what's the difficulty?


EAs typically push for 12 or more weeks minimum contract, but there's no reason a seller should demand shorter, and if the agent thinks they have a good chance of finding a better buyer and hence earning their fee, they may well agree.

eddddy wrote: »

Why on earth wouldn't it work?

In fact, it would just be a completely standard "Sole Agency Agreement"...

... with the "friend of a friend" having been introduced, before the agreement starts.


And the minimum contract period could be 8 weeks / 12 weeks or whatever. (The seller isn't prevented from from accepting an offer after 2 weeks, just because they have a 12 week minimum contract period.)

I don't believe that an estate agent would do all the work of marketing a property while at the time saying "it's fine after all the work we have done for you to sell it to your friend and we won't charge you." Estate agents exist to make money!

I also think it would be difficult to draft the terms of the agreement, for example:
How long would the property have be on the market before it could be sold to the friend? Does the estate agent get paid if the friend increases their offer? What happens if the estate agent only get lower offers? Overall, In what circumstances does the estate agent get credit for the sale?

burnleymik

Thankyou all for the advice.


We are going to do the work and get some EA's around for a valuation, understanding most will give a higher end value to get your business, and then see if the FOAF is still interested at the price we are hoping for. If not we will then go through one of the EA's, but if they do we won't use them.


I wasn't overly familiar with what an EA brings to the table, but definitely have more of an idea now. Thanks again all.

Thrugelmir

burnleymik wrote: »

We are going to do the work and get some EA's around for a valuation, understanding most will give a higher end value to get your business,.

There's little point in setting a selling price too low. Likewise EA's want a completed sale ASAP. They gain nothing from overpricing a property. What you agree to sell it for is your decision. Be prepared to negotiate. Don't take the valuation given as definitive.

kinger101

pphillips wrote: »

I don't believe that an estate agent would do all the work of marketing a property while at the time saying "it's fine after all the work we have done for you to sell it to your friend and we won't charge you." Estate agents exist to make money!

I also think it would be difficult to draft the terms of the agreement, for example:
How long would the property have be on the market before it could be sold to the friend? Does the estate agent get paid if the friend increases their offer? What happens if the estate agent only get lower offers? Overall, In what circumstances does the estate agent get credit for the sale?

It isn't that much work. A most of them aren't that busy at the moment.