Can I cancel contract with estate agent before house goes on the market?

SueF1

Grumpy_chap said:

How interested is the "friend of a friend"?  And, if they are interested, is there value in them still coming via the EA that you selected?  If this "friend of a friend" has seen your property and is "proceedable" then it may be worth going ahead with them and (if the contract allows it) not starting advertising with the EA.  If it is just a "friend of a friend" that is thinking of looking for an X bedroom property in the same general area sometime in the next period whenever, then this offers you nothing and, in the mean-time, you are not making progress to sell via any other process.

That's it isn't it, nail on head! I would obviously be up for selling without the agent to lose their fees but completely depends how genuine they are. They 'seem' very interested and have checked they can proceed mortgage- wise already etc, which they can. The agent is coming back to take the photo's on Monday with a view to having the flat on the market by the afternoon but obviously if we could firm up with the friend before then, this would mean no marketing has been done, and therefore no costs have been incurred by the agent, hopefully meaning I would be able to cancel the contract.
Unfortunately at the moment where I am I don't have access to the contract or I would have checked it.

Thank you very much for your help.

eddddy

SueF1 said:

That's it isn't it, nail on head! I would obviously be up for selling without the agent to lose their fees but completely depends how genuine they are. They 'seem' very interested and have checked they can proceed mortgage- wise already etc, which they can. The agent is coming back to take the photo's on Monday with a view to having the flat on the market by the afternoon but obviously if we could firm up with the friend before then, this would mean no marketing has been done, and therefore no costs have been incurred by the agent, hopefully meaning I would be able to cancel the contract.

Unfortunately at the moment where I am I don't have access to the contract or I would have checked it.

Thank you very much for your help.

As I mentioned, if it is a true 'Sole Agency' Contract - you shouldn't need to cancel it at all.

No fees should be payable, if you sell to a friend of a friend.

And then, if the friend of a friend's offer falls through, you can just let the EA continue with their marketing. (But you should make the EA aware of the friend of a friend's offer.)

SueF1

eddddy said:

As I mentioned, if it is a true 'Sole Agency' Contract - you shouldn't need to cancel it at all.

No fees should be payable, if you sell to a friend of a friend.

And then, if the friend of a friend's offer falls through, you can just let the EA continue with their marketing. (But you should make the EA aware of the friend of a friend's offer.)

Great advice, thanks very much for your help. 

Grumpy_chap

If the EA has not done anything and is not coming to take the photos until Monday, why not just cancel them for now.  Say there has been a family emergency and you need to stop everything while you sort it out and will be back in touch with them as soon as you can provide an update.

If the "friend-of-a-friend" makes an offer and is proceedable by a suitable deadline, suggest middle of next week, then go with their offer.  If not, just get the EA round and go ahead.  The "friend-of-a-friend" can still make an offer via the EA if they later become proceedable.

I am not quite sure who gains most from the "friend-of-a-friend" route anyway.  Presumably the "friend-of-a-friend" will want a discount to reflect the saving in EA fees but they will also be the only-kid-on-the-block when they make their offer so how do you know the valuation on the property?  If you go through the EA, the initial valuation is nothing more than a guide and the OP stands to make the best outcome if there are two interested parties bidding against each other - this can never be reaslised if no EA, no advertising, and just going on the "friend-of-a-friend" offer.

macman

Marketing it through the EA does not preclude you from doing a private sale. Just carry on marketing it while your friend does her necessary prep.
If you cancel the contract now, the agent will probably charge you for advertising prep, the EPC, floorplan, admin, etc.

SueF1

Grumpy_chap said:

If the EA has not done anything and is not coming to take the photos until Monday, why not just cancel them for now.  Say there has been a family emergency and you need to stop everything while you sort it out and will be back in touch with them as soon as you can provide an update.

If the "friend-of-a-friend" makes an offer and is proceedable by a suitable deadline, suggest middle of next week, then go with their offer.  If not, just get the EA round and go ahead.  The "friend-of-a-friend" can still make an offer via the EA if they later become proceedable.

I am not quite sure who gains most from the "friend-of-a-friend" route anyway.  Presumably the "friend-of-a-friend" will want a discount to reflect the saving in EA fees but they will also be the only-kid-on-the-block when they make their offer so how do you know the valuation on the property?  If you go through the EA, the initial valuation is nothing more than a guide and the OP stands to make the best outcome if there are two interested parties bidding against each other - this can never be reaslised if no EA, no advertising, and just going on the "friend-of-a-friend" offer.

Thank you. 

I know what the flat is likely to achieve and what I need to sell it for. Others in the area have sold recently so I'm quite confident the price I'm asking for is the right one. I have been made an offer, for the amount I wanted (asking price) and have informed the agent I cannot proceed with them for now. If anything changes I will get back to them. No marketing / even photo's have been done and there is a 2 week cooling off period so no costs have been incurred.

Thank you all for your great advice, it's been so helpful.

steve866

SueF1 said:

Grumpy_chap said:

If the EA has not done anything and is not coming to take the photos until Monday, why not just cancel them for now.  Say there has been a family emergency and you need to stop everything while you sort it out and will be back in touch with them as soon as you can provide an update.

If the "friend-of-a-friend" makes an offer and is proceedable by a suitable deadline, suggest middle of next week, then go with their offer.  If not, just get the EA round and go ahead.  The "friend-of-a-friend" can still make an offer via the EA if they later become proceedable.

I am not quite sure who gains most from the "friend-of-a-friend" route anyway.  Presumably the "friend-of-a-friend" will want a discount to reflect the saving in EA fees but they will also be the only-kid-on-the-block when they make their offer so how do you know the valuation on the property?  If you go through the EA, the initial valuation is nothing more than a guide and the OP stands to make the best outcome if there are two interested parties bidding against each other - this can never be reaslised if no EA, no advertising, and just going on the "friend-of-a-friend" offer.

Thank you. 

I know what the flat is likely to achieve and what I need to sell it for. Others in the area have sold recently so I'm quite confident the price I'm asking for is the right one. I have been made an offer, for the amount I wanted (asking price) and have informed the agent I cannot proceed with them for now. If anything changes I will get back to them. No marketing / even photo's have been done and there is a 2 week cooling off period so no costs have been incurred.

Thank you all for your great advice, it's been so helpful.

Good luck with it all. I am currently purchasing a house directly from the vendor. When I made my offer I sent him a copy of my mortgage in principal and said I would be happy to show him my Experian score and proof of deposit for reassurance, which he didn’t ask for. You might want to do some of your own due diligence as mortgages are harder to get at this point in time. 

MovingForwards

steve866 said:

SueF1 said:

Grumpy_chap said:

If the EA has not done anything and is not coming to take the photos until Monday, why not just cancel them for now.  Say there has been a family emergency and you need to stop everything while you sort it out and will be back in touch with them as soon as you can provide an update.

If the "friend-of-a-friend" makes an offer and is proceedable by a suitable deadline, suggest middle of next week, then go with their offer.  If not, just get the EA round and go ahead.  The "friend-of-a-friend" can still make an offer via the EA if they later become proceedable.

I am not quite sure who gains most from the "friend-of-a-friend" route anyway.  Presumably the "friend-of-a-friend" will want a discount to reflect the saving in EA fees but they will also be the only-kid-on-the-block when they make their offer so how do you know the valuation on the property?  If you go through the EA, the initial valuation is nothing more than a guide and the OP stands to make the best outcome if there are two interested parties bidding against each other - this can never be reaslised if no EA, no advertising, and just going on the "friend-of-a-friend" offer.

Thank you. 

I know what the flat is likely to achieve and what I need to sell it for. Others in the area have sold recently so I'm quite confident the price I'm asking for is the right one. I have been made an offer, for the amount I wanted (asking price) and have informed the agent I cannot proceed with them for now. If anything changes I will get back to them. No marketing / even photo's have been done and there is a 2 week cooling off period so no costs have been incurred.

Thank you all for your great advice, it's been so helpful.

Good luck with it all. I am currently purchasing a house directly from the vendor. When I made my offer I sent him a copy of my mortgage in principal and said I would be happy to show him my Experian score and proof of deposit for reassurance, which he didn’t ask for. You might want to do some of your own due diligence as mortgages are harder to get at this point in time. 

Your credit score isn't seen or used by lenders when they assess applications, it's the credit history they see and use, plus other external information.

steve866

MovingForwards said:

steve866 said:

SueF1 said:

Grumpy_chap said:

If the EA has not done anything and is not coming to take the photos until Monday, why not just cancel them for now.  Say there has been a family emergency and you need to stop everything while you sort it out and will be back in touch with them as soon as you can provide an update.

If the "friend-of-a-friend" makes an offer and is proceedable by a suitable deadline, suggest middle of next week, then go with their offer.  If not, just get the EA round and go ahead.  The "friend-of-a-friend" can still make an offer via the EA if they later become proceedable.

I am not quite sure who gains most from the "friend-of-a-friend" route anyway.  Presumably the "friend-of-a-friend" will want a discount to reflect the saving in EA fees but they will also be the only-kid-on-the-block when they make their offer so how do you know the valuation on the property?  If you go through the EA, the initial valuation is nothing more than a guide and the OP stands to make the best outcome if there are two interested parties bidding against each other - this can never be reaslised if no EA, no advertising, and just going on the "friend-of-a-friend" offer.

Thank you. 

I know what the flat is likely to achieve and what I need to sell it for. Others in the area have sold recently so I'm quite confident the price I'm asking for is the right one. I have been made an offer, for the amount I wanted (asking price) and have informed the agent I cannot proceed with them for now. If anything changes I will get back to them. No marketing / even photo's have been done and there is a 2 week cooling off period so no costs have been incurred.

Thank you all for your great advice, it's been so helpful.

Good luck with it all. I am currently purchasing a house directly from the vendor. When I made my offer I sent him a copy of my mortgage in principal and said I would be happy to show him my Experian score and proof of deposit for reassurance, which he didn’t ask for. You might want to do some of your own due diligence as mortgages are harder to get at this point in time. 

Your credit score isn't seen or used by lenders when they assess applications, it's the credit history they see and use, plus other external information.

Thanks I didn’t know that. Having said that if I was selling directly with no agent vetting the buyer, I think knowing the buyer had a 999 score on Experian would still give me a bit of reassurance.

Grumpy_chap

The 999 score on Experian is nothing more than an interpretation of how the individual manages current debt to the rules.
What you cannot see is affordability, which is likely more important to a lender.  At least as important.