How to deal with slimy Estate Agent? Can I cut them out?

eddddy

FWIW, I think there might be pain ahead.

• You first viewed through estate agent A - so they introduced you to the property. So they would be due a fee from the seller.
• You then negotiated through estate agent B. So they would be due a fee from the seller.

So I suspect their contracts say they are both due their fee.  Multi-agency contracts often have fees of 2.5%+vat - so that might be £8.25k each - a total of £16.5k to be paid by the seller.


It may even be that the estate agents have realised what's happened, and are trying to work out a deal behind the scenes - hence the delay. (And maybe that's why the extra £1k to £4k on the offer was important - to cover the seller's extra fees.)


But if both estate agents stand firm on their fees - it might be cheaper for the seller to put the property back on the market, and sell to somebody else for £325k.

person2

theartfullodger said:

Expect a few estate agents would like to not have to deal with slimy customers....

Met a few myself over the years.  There's unpleasant people in every walk of life - government ministers, traffic wardens, etc etc etc

Your point being?

theoretica

person2 said:

But the seller has accepted my offer, so what's the problem? If they wanted more, why would they confirm with the solicitor that they've accepted? And just as 1k will make no difference to the seller's commission, how is 1k going to make any difference to a corporate seller who probably turn over millions per year? It's not like my offer is below asking price?

That reads to me like you are saying you think the sale isn't so important to the seller.

AdrianC

person2 said:

I'm trying to buy my first flat, and I'm already sick of the estate agent playing games. Hopefully someone can help? Apologies it's a bit long.

Flat asking price is 330k. Seller is corporate. I have mortgage AIP through a financial advisor, a solicitor lined up, a large deposit & am chain-free.

What's happened so far:

I viewed a flat with Estate Agent A - but they were unable to provide me any details on service charge or ground rent. After a week, I felt like I was going to miss out on the flat due to the agent being so useless, so I enquired about it through Estate Agent B. This EA was much more helpful and had all details to hand. They also told me there was an existing offer for 320k, but that it had been declined as the seller wouldn't accept less than 330k. I considered offering 325k, but I was worried the other buyer would then go up to 330k and I'd lose out, and given that I actually think 330k is a fair price compared to other flats on the market in the area, I decided to just offer the asking price.

This is where the games start. They tell me they're submitting my offer to the seller and will let me know. I wait, ask again, they say they're 'Still waiting to hear back' and will ring me as soon as they do. Eventually 3 days later, they ring back claiming that 'I think it will be more likely to be accepted if you up to 335k'. The way they worded it made it sound like the offer had been rejected, but in reality, it was clear they hadn't even submitted the offer and were trying to trick me into thinking it had been rejected to get another 5k out of me. I said no and that 330k was my final offer. Later that day, a different person at the EA rings me trying to negotiate me up to 335k. Then 334, down to 331k. I decided to call their bluff and said 'I understand from your colleague XYZ that I am the only offer you've had on the flat, right?' 'Yes that's right, we haven't had any other offers, but we feel your offer will be accepted if you offer 331k instead of 330k'. I said no.

Finally, another guy calls me the next day to try again to push me up to 331k. After some back and forth, I convince him that 330k is my max and that given I am ready to move quickly and am chain-free etc, that the seller can rest assured it will be a smooth and quick sale.

Finally, they submit my offer, and after chasing them up a few times, they tell me the offer is 'Preliminarily accepted'. I chase them up, but apparently the seller needs a new solicitor and has a few different company decision makers to check with before officially accepting. EA tell me on Friday morning he is going to speak to the seller today and will let me know 'As soon as possible'. Obviously he didn't let me know, so I eventually ring at 5 PM on Friday and turns out it was accepted earlier in the day but 'We can't send out the sales memorandum now as it's too late and is the weekend, will have to wait until next week'. I think they wanted another weekend to market the flat.

This brings me to yesterday (Monday). I ring up first thing in the morning and ask for the sales memorandum to be copied to my solicitor to start the process and remove the flat's listing from Zoopla, Estate Agent A's website and to list the flat as Sold STC on their website (Which they said they do as soon as the memorandum has been sent). EA claims that 'My colleagues aren't in until 11, and then we need to check a couple of details before we can send'. He won't tell me what details they need. I ask if it's anything I can help with by sending over to them, cue another vague response about it having to be late afternoon. Delaying again.

So I ring back in the afternoon, and they won't answer any of my calls. And that brings me to today.

Can someone help explain where I've gone wrong?

What should my next move be?

I'd also like to know whether it would be a bad idea to find out who the seller is through land registry and contact them directly?

Is it possible to cut out the EA?

No, it's not possible to cut out the EA. Remember - they do not work for you, they work for the vendor.

A corporate vendor will almost certainly not deal directly with you, they will just say "go through the EA".

Once the memorandum of sale is issued, then the solicitors will just deal with each other.

You will not get it removed from RM etc, not if it's a corporate seller - they will happily accept a gazumping offer if they think it's worth their while, right up to exchange. That's just inherent with a corporate sale, whether PX or repo or whatever. If you don't like that, buy a different flat.

person2

eddddy said:

FWIW, I think there might be pain ahead.

• You first viewed through estate agent A - so they introduced you to the property. So they would be due a fee
• You then negotiated through estate agent B. So they would be due a fee.

So I suspect their contracts say they are both due their fee.  Multi-agency contracts often have fees of 2.5%+vat - so that might be £8.25k each - a total of £16.5k

It may even be that the estate agents have realised what's happened, and are trying to work out a deal behind the scenes - hence the delay. (And maybe that's why the extra £1k to £4k on the offer was important - to cover the seller's extra fees.)

But if both estate agents stand firm on their fees - it might be cheaper for the seller to put the property back on the market, and sell to somebody else for £325k.

Thanks, this very helpful. What would you suggest I do then to try to remedy the situation? Appreciate it was probably a bad move in retrospect to have switched EA, but felt necessary at the time due to EA A being so slow / unhelpful.

person2

theoretica said:

person2 said:

But the seller has accepted my offer, so what's the problem? If they wanted more, why would they confirm with the solicitor that they've accepted? And just as 1k will make no difference to the seller's commission, how is 1k going to make any difference to a corporate seller who probably turn over millions per year? It's not like my offer is below asking price?

That reads to me like you are saying you think the sale isn't so important to the seller.

In a way you're right it's probably not. However - and I didn't include this originally as it was already getting long - the seller has previously had 2 buyers fall through - the second was dragged out due to the buyer losing their job from Covid-19 / lockdown. So at this point, I think they just want to close it off.

letsbetfair

person2 said:

theoretica said:

person2 said:

But the seller has accepted my offer, so what's the problem? If they wanted more, why would they confirm with the solicitor that they've accepted? And just as 1k will make no difference to the seller's commission, how is 1k going to make any difference to a corporate seller who probably turn over millions per year? It's not like my offer is below asking price?

That reads to me like you are saying you think the sale isn't so important to the seller.

In a way you're right it's probably not. However - and I didn't include this originally as it was already getting long - the seller has previously had 2 buyers fall through - the second was dragged out due to the buyer losing their job from Covid-19 / lockdown. So at this point, I think they just want to close it off.

Speed may be less important to a large corporation than a private seller. If I had £300k locked up in a property I wasn't living in, that would seriously disrupt my life and I'd want to get it sorted ASAP. For a large corporation having £300k tied up a few months longer may be no big deal

eddddy

person2 said:

eddddy said:

FWIW, I think there might be pain ahead.

• You first viewed through estate agent A - so they introduced you to the property. So they would be due a fee
• You then negotiated through estate agent B. So they would be due a fee.

So I suspect their contracts say they are both due their fee.  Multi-agency contracts often have fees of 2.5%+vat - so that might be £8.25k each - a total of £16.5k

It may even be that the estate agents have realised what's happened, and are trying to work out a deal behind the scenes - hence the delay. (And maybe that's why the extra £1k to £4k on the offer was important - to cover the seller's extra fees.)

But if both estate agents stand firm on their fees - it might be cheaper for the seller to put the property back on the market, and sell to somebody else for £325k.

Thanks, this very helpful. What would you suggest I do then to try to remedy the situation? Appreciate it was probably a bad move in retrospect to have switched EA, but felt necessary at the time due to EA A being so slow / unhelpful.

There's probably not much you can do.

It's between the seller and their two agents. If estate agent B didn't ask you whether you had already viewed the property, that may be a breach of the Ombudsman's code of practice. So the seller might have a case for complaining to the Ombudsman, and getting a reduction in fees.


But that might give the seller two options:

• Continue with your offer of £330k - take on the hassle of complaining to the ombudsman, and hope they don't end up having to pay two fees

• Re-market it and accept another offer from somebody else of £325k or £330k - with no ombudsman hassle and no risk of double fees.

But maybe the seller and 2 EAs can negotiate a compromise deal, so it won't come to that.




Edit to add...

I guess, an assertive seller might say something like this to both EAs...

"Either I accept this offer and you agree to each take 50% of your fee. Or I will terminate both your contracts, and find another EA to sell the property. And then you'll get nothing."


(Assuming the fixed contract period has finished, etc)

person2

eddddy said:

Edit to add...

I guess, an assertive seller might say something like this to both EAs...

"Either I accept this offer and you agree to each take 50% of your fee. Or I will terminate both your contracts, and find another EA to sell the property. And then you'll get nothing."


(Assuming the fixed contract period has finished, etc)

Let's hope so! Is it worth me clarifying with the EA if this is the issue?

babyblade41

You will have to be patient if you want this flat.. corporate sales can be notoriously slow as it doesn't involve just one person ... 

The EA fee will/ could be complicated and cause even more bother 

IMO I'd find another flat with less hassle 

ETA.. I doubt it will be removed from RM either ...