Buying agents: Avoid like the plague

eddddy

Diocletian_II wrote: »

....and do the negotiating.

I'm not sure how they can achieve any benefit there.

The buying agent would be negotiating with the seller's EA.

The buying agent might negotiate the seller's EA into the ground - but that won't help getting the seller to accept a low offer.


(In fact, probably the opposite. If the seller's EA is rubbish at negotiating, they probably won't be able to persuade the seller to accept a low offer.)

System

sal_III wrote: »

Ahh so a Location, Location, Location type of deal. I get it.

I can see a genuine need for such service, especially if you are looking to relocate and/or day off work
to view and sift trough properties can cost you £100s/£1000s

It's not surprising that as in any other profession there are ones that offer poor service.

Can't comment on your personal experience, but sounds like it's partially your fault for being susceptible to such sales pitches if you claim you didn't need their services, yet still signed up.

Yes, I feel really stupid for getting taken in by their smooth talk. But as I discovered, their actual talent is for selling themselves, and persuading you to part with your £2400 retainer. If I was relocating for work, I'd rent in the area first, get to know it, and then do the searching myself - you would save many thousands of pounds, since their final commission is exorbitant.

sal_III

eddddy wrote: »

I'm not sure how they can achieve any benefit there.

They can, if you are rubbish at negotiation, like me. I'm too impulsive/emotional and if I like something, I find it hard to risk not getting it due to negotiation of the price.

But I would only trust someone to negotiate on my behalf if they have a vested interest, like their commission being based on how much under the asking price they get. Definitely not if their commission is based on sale and they have already taken a payment in advance/retainer (like in OPs case)

sal_III

Diocletian_II wrote: »

Yes, I feel really stupid for getting taken in by their smooth talk. But as I discovered, their actual talent is for selling themselves, and persuading you to part with your £2400 retainer. If I was relocating for work, I'd rent in the area first, get to know it, and then do the searching myself - you would save many thousands of pounds, since their final commission is exorbitant.

Blimey, I would definitely not pay £2400 in advance for services not rendered And that's just the retainer, there are is more commission on purchase you say?

Wow, they are raking it in, better than EAs

System

eddddy wrote: »

I'm not sure how they can achieve any benefit there.

The buying agent would be negotiating with the seller's EA.

The buying agent might negotiate the seller's EA into the ground - but that won't help getting the seller to accept a low offer.


(In fact, probably the opposite. If the seller's EA is rubbish at negotiating, they probably won't be able to persuade the seller to accept a low offer.)

They sell themselves partly on being brilliant negotiators, who can save you mega bucks. I discovered they are no better at dealing with estate agents than normal average individuals. But it's too late by then, because they have pocketed your retainer, which I think is how they make their bread a butter.

System

sal_III wrote: »

Blimey, I would definitely not pay £2400 in advance for services not rendered And that's just the retainer, there are is more commission on purchase you say?

Wow, they are raking it in, better than EAs

They want 3% of any final purchase price too, on top of the retainer, and it is payable even if they are not involved with the finding or buying. That is standard. It's a rip off.

hazyjo

Diocletian_II wrote: »

They want 3% of any final purchase price too, on top of the retainer, and it is payable even if they are not involved with the finding or buying. That is standard. It's a rip off.

Not a rip off if people are prepared to pay it. It just becomes 'the price'. They could sales-patter me all they liked, I would never in a million have signed up for anything like that.


You'd have been better to ask on here for free about areas to buy in/avoid. I can't imagine how these people would have a clue about that anyway. It's unlikely they live in that specific area, surely...

System

hazyjo wrote: »

Not a rip off if people are prepared to pay it. It just becomes 'the price'

This is how it works as a rip off:
They pocket your £2400 retainer. After a while, you realise they are useless and dishonest, so you intensify your own search. You then realise that if you are doing the work yourself, it is a waste of money to continue with their contract, which only means you have to pay them final commission for your own work. You end the relationship, and they walk off with your retainer. Wash and repeat. They rake it in just by taking retainers.
Yes. I was stupid, and am kicking myself.

hazyjo

Diocletian_II wrote: »

Yes. I was stupid, and am kicking myself.

Try not to beat yourself up too much - we're all human and f... up occasionally. Expensive mistake in your case, but lesson learnt.


Don't forget to ask for advice on here re location, etc if you're looking now or in the future.

System

hazyjo wrote: »

Try not to beat yourself up too much - we're all human and f... up occasionally. Expensive mistake in your case, but lesson learnt.


Don't forget to ask for advice on here re location, etc if you're looking now or in the future.

Thank you. Yes, I am still looking. And although I am really upset about wasting that £2400, I feel liberated from being trapped in an abusive contract with the buying agent. And I now feel much more comfortable doing it all myself.

I just hope other people do not make the same mistake that I made. Posting my experience here may at least help someone avoid the same mistake.