Offering under asking price

Thrugelmir

eddddy said:

olbas_oil said:

They are legally obliged to relay offers to the owner. The only way to get around it is to discourage you from making an official offer. 

Is that always true? How does it work in these circumstances:
1) The owner has asked the agent not to bother them with silly offers (X% below asking)
2) The house is marked as SSTC. Can a frustrated buyer put in a revised offer, and would the agent have to pass that on? If so it makes a mockery of the 'best and final' process.

Here's the relevant extract from the legislation:

2.  The failure by an estate agent to forward to his client promptly and in writing accurate details (other than those of a description which the client has indicated in writing he does not wish to receive) of any offer the estate agent has received from a prospective purchaser in respect of an interest in the land.

Link: https://www.legislation.gov.uk/uksi/1991/1032/schedule/3/made

The Property Ombudsman's mandatory code of practice for members expresses it like this:

9a By law, you must tell sellers as soon as is reasonably possible about all offers that you receive at any time until contracts have been exchanged unless the offer is an amount or type which the seller has specifically instructed you, in writing, not to pass on. You must confirm each offer in writing to the seller, and to the buyer who made it, within 2 working days.

Link: https://www.tpos.co.uk/images/Codes_2019_a5/TPOE27-8_Code_of_Practice_for_Residential_Estate_Agents_A5_-_Effective_1_June_2019.pdf

So if a seller has told the EA in writing that they...

• don't want offers below a value
• don't want offers from non-proceedable buyers
• don't want offers after the the property is SSTC
• don't want offers from buyers who don't agree to paying a buyer's fee (i.e. a few dodgy EAs)

... then that's fine.

But some EAs might 'hide' those types of terms in amongst other t&cs that a seller signs.

If a seller makes an offer verbally, a dodgy EA might later claim that they didn't think it was an offer, just a discussion about making an offer etc.

So perhaps it's best to always make/confirm offers in writing - e.g. an email.

EA's earn commission by selling houses. Be a daft business model that intentionally frustrates the process. Cash pays the wages and rent etc. 

MobileSaver

Crashy_Time said:

pinkshoes said:

If you go throwing around low offers on properties that you're not all that interested in then the EA will start to think you're a time waster and you won't be on their list of people they call when something good comes on the market.

They have to break the news to that seller that their property is also overpriced? What is PropertyLog saying about your area OP?

I've just checked PropertyLog for over 100 properties in my extended area and the vast majority of them have had no reductions. Using your logic that must mean that the vast majority of properties are correctly priced or under-priced?

Crashy_Time

MobileSaver said:

Crashy_Time said:

pinkshoes said:

If you go throwing around low offers on properties that you're not all that interested in then the EA will start to think you're a time waster and you won't be on their list of people they call when something good comes on the market.

They have to break the news to that seller that their property is also overpriced? What is PropertyLog saying about your area OP?

I've just checked PropertyLog for over 100 properties in my extended area and the vast majority of them have had no reductions. Using your logic that must mean that the vast majority of properties are correctly priced or under-priced?

Are you in the same area as the OP?

nicknameless

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

pinkshoes said:

If you go throwing around low offers on properties that you're not all that interested in then the EA will start to think you're a time waster and you won't be on their list of people they call when something good comes on the market.

They have to break the news to that seller that their property is also overpriced? What is PropertyLog saying about your area OP?

I've just checked PropertyLog for over 100 properties in my extended area and the vast majority of them have had no reductions. Using your logic that must mean that the vast majority of properties are correctly priced or under-priced?

Are you in the same area as the OP?

Are you ignoring the point made?

MobileSaver

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

They have to break the news to that seller that their property is also overpriced? What is PropertyLog saying about your area OP?

I've just checked PropertyLog for over 100 properties in my extended area and the vast majority of them have had no reductions. Using your logic that must mean that the vast majority of properties are correctly priced or under-priced?

Are you in the same area as the OP?

No, but I've just now checked the first 100 properties in what I am guessing is the OP's area and that's the same; the vast majority have not had any reductions and indeed PropertyLog shows that more than a few have actually put their prices up since listing on Rightmove!

I'm sure you will agree therefore that using your logic it must mean that the vast majority of properties are correctly priced or under-priced?

nicknameless

MobileSaver said:

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

They have to break the news to that seller that their property is also overpriced? What is PropertyLog saying about your area OP?

I've just checked PropertyLog for over 100 properties in my extended area and the vast majority of them have had no reductions. Using your logic that must mean that the vast majority of properties are correctly priced or under-priced?

Are you in the same area as the OP?

No, but I've just now checked the first 100 properties in what I am guessing is the OP's area and that's the same; the vast majority have not had any reductions and indeed PropertyLog shows that more than a few have actually put their prices up since listing on Rightmove!

I'm sure you will agree therefore that using your logic it must mean that the vast majority of properties are correctly priced or under-priced?

Very sure crashy will agree with that.  In fact they probably haven't yet responded as they're having trouble working out how to change their username to Boomy_Time! 

Sunsaru

nicknameless said:

MobileSaver said:

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

They have to break the news to that seller that their property is also overpriced? What is PropertyLog saying about your area OP?

I've just checked PropertyLog for over 100 properties in my extended area and the vast majority of them have had no reductions. Using your logic that must mean that the vast majority of properties are correctly priced or under-priced?

Are you in the same area as the OP?

No, but I've just now checked the first 100 properties in what I am guessing is the OP's area and that's the same; the vast majority have not had any reductions and indeed PropertyLog shows that more than a few have actually put their prices up since listing on Rightmove!

I'm sure you will agree therefore that using your logic it must mean that the vast majority of properties are correctly priced or under-priced?

Very sure crashy will agree with that.  In fact they probably haven't yet responded as they're having trouble working out how to change their username to Boomy_Time! 

And in other news, Hell froze over this morning....

Crashy_Time

MobileSaver said:

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

They have to break the news to that seller that their property is also overpriced? What is PropertyLog saying about your area OP?

I've just checked PropertyLog for over 100 properties in my extended area and the vast majority of them have had no reductions. Using your logic that must mean that the vast majority of properties are correctly priced or under-priced?

Are you in the same area as the OP?

No, but I've just now checked the first 100 properties in what I am guessing is the OP's area and that's the same; the vast majority have not had any reductions and indeed PropertyLog shows that more than a few have actually put their prices up since listing on Rightmove!

I'm sure you will agree therefore that using your logic it must mean that the vast majority of properties are correctly priced or under-priced?

Why are both properties still on the market, one since the summer?

MobileSaver

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

They have to break the news to that seller that their property is also overpriced? What is PropertyLog saying about your area OP?

I've just checked PropertyLog for over 100 properties in my extended area and the vast majority of them have had no reductions. Using your logic that must mean that the vast majority of properties are correctly priced or under-priced?

Are you in the same area as the OP?

No, but I've just now checked the first 100 properties in what I am guessing is the OP's area and that's the same; the vast majority have not had any reductions and indeed PropertyLog shows that more than a few have actually put their prices up since listing on Rightmove!

Why are both properties still on the market, one since the summer?

I have no idea, it could be any one of 101 different reasons. Do you know why? (And I mean do you actually know the reason rather than just your usual agenda-driven speculation? )

Whatever the reason does it change the fact that the vast majority of properties are correctly priced or even under-priced?

Crashy_Time

MobileSaver said:

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

MobileSaver said:

Crashy_Time said:

They have to break the news to that seller that their property is also overpriced? What is PropertyLog saying about your area OP?

I've just checked PropertyLog for over 100 properties in my extended area and the vast majority of them have had no reductions. Using your logic that must mean that the vast majority of properties are correctly priced or under-priced?

Are you in the same area as the OP?

No, but I've just now checked the first 100 properties in what I am guessing is the OP's area and that's the same; the vast majority have not had any reductions and indeed PropertyLog shows that more than a few have actually put their prices up since listing on Rightmove!

Why are both properties still on the market, one since the summer?

I have no idea, it could be any one of 101 different reasons. Do you know why? (And I mean do you actually know the reason rather than just your usual agenda-driven speculation? )

Whatever the reason does it change the fact that the vast majority of properties are correctly priced or even under-priced?

Recent sales data says otherwise.

https://www.plumplot.co.uk/house-prices-by-region.html