Yopa large overvaluation- chance to get fees back?

Sarah1Mitty2

Woolsery said:

Sarah1Mitty2 said:

Woolsery said:

A lot of posting on here is of the cautionary tale variety, but looking on the matter broadly most of us posting have experienced problems and losses in the property market.

Look at this another way; I employed a financial adviser last year and asked for some of my funds to go into a relatively safe haven rather than somewhere risky. They're £4k down at present and looking like they'll do even worse. I thought when I met him he wasn't as clued-up as I'd have expected, but I didn't speak to anyone else. Mea culpa. With any financial transaction comes an element of risk.

Isn`t that a buying opportunity if they are sound investments? Expecting  a financial adviser to be able to outrun the biggest inflation and volatility for 40 years or whatever it is is asking a lot I think.

Strangely enough, I've managed better than him by putting other funds elsewhere. Diversification of risk and all that.

Can I ask the sort of funds you used?

Schwarzwald

jimmyb78 said:

Woolsery said:

A lot of posting on here is of the cautionary tale variety, but looking on the matter broadly most of us posting have experienced problems and losses in the property market.

Look at this another way; I employed a financial adviser last year and asked for some of my funds to go into a relatively safe haven rather than somewhere risky. They're £4k down at present and looking like they'll do even worse. I thought when I met him he wasn't as clued-up as I'd have expected, but I didn't speak to anyone else. Mea culpa. With any financial transaction comes an element of risk.

This of course is true. I've not sold a house before and it seems I've been stung. I certainly wouldn't do a similar deal when you get paid if you don't even sell the property again. But it's a rough time, i won't lie. Hopefully i can claw something back

I think this is the main aspect of your situation and down to what you agreed upfront / contractually.
are the fees due on a success-only or on a best-efforts basis, ie even in the absence of a sale?
You stated at 85k you are already in negative equity, so it sounds your break-even and therefore minimum offer is somewhere between 85-90k on an estimated market value of 95k. That leaves very little margin of error and on that basis going with an EA which works on a success-only fee basis seemed to have been the better/advisable approach, especially as 2k fees are painful to swallow if your equity in the property is only very thin.

this is not intended to be patronizing, but it sounds that you went with the wrong fee model in your case as you (maybe) hoped to achieve a few £££ more vs other EA.

it’s down to contract so posting the relevant contract clause would have been most helpful, ideally in your first post.

GDB2222

Of no help to the OP, but I have no idea why he chose Yopa. Strike offer much the same service at £nil cost. 

Personally, in the OP's position, I'd return Yopa's invoice with a stinking letter saying that you were induced to enter the contract through misrepresentation. The £95k valuation was a blandishment, to obtain the business, and it was 20% over the market value. Kick up a hell of a fuss, and hopefully settle for half. 

The other two valuations at £92k don't help the OP's case, but we don't know the circumstances, and Yopa probably are unaware of them.

Of course, looking at this from Yopa's POV, I haven't seen what they wrote/said to the OP in detail. They may have covered their backs. However, if they wrote something highly optimistic about obtaining close to £95k, they might have a real problem if they took this to court to get their £1199.

In any case, would they go to court? The publicity fallout might be poor, and the professional fees could outweigh the amount they can recover.

Schwarzwald

jimmyb78 said:

So I put decided to put my little flat on the market last year with my local Yopa agent valuing it at 95k with a carparking space.

I chose the Pay Later option, which is a fee of 1199 after 10 months. My agent assured me an excellent rental property like mine should go easily. 

Well, it hasn't. I first had to drop to 90k, then 85k. Still no offers. At this price I'm already in negative equity and had told my agent at the start that there would be no point putting the flat on the market at this value. I only agreed after the 95k valuation. 

Yesterday he revealed he'd had an offer of 80k and that he didn't believe we could get 85k for the flat now. This is 16% lower than advised. 

I cannot afford to sell at this price, and Yopa want their £1199. Considering the sheer size of the valuation discrepancy do people think i have a case of avoiding the fee due to being badly advised? I just want the place off the market now as the situation seems hopeless. I have raised a complaint but any advise is appreciated. 

As I am stuck on a delayed flight, I just read up Yopa’s T&C, which clearly state:

“The Local Yopa Agent will provide a guide price for marketing the Property for sale. … Ultimately, it will be your decision (as a Seller) to decide on the Marketing Price… 

You agree and acknowledge that the guide price provided by the Local Yopa Agent …. is not a valuation of the Property”

In addition, it also clearly states:

“5.3 IMPORTANT … If you choose Pay Later you agree to pay the Yopa Fee … in full on the earlier of:

a. the Completion of the sale of your Property;

b. the expiry of 10 months from the date your Property is listed by Yopa; or

c. if, after the date your Property is listed by Yopa, you terminate this Agreement or withdraw your Property from the Market at any time, the date of any such cancellation/withdrawal.”

You might be unhappy with the outcome, but their T&Cs seem to be stated pretty clear and transparent. 

On that basis, I dont see how you have any case based on the lack of offers / below your expectations and are due to pay them their fee (unless you can show they failed to provide any other agreed services, which you havent mentioned so far).

Shaztastic3000

Just pay the fee and move on with your life. There is nothing you can do

the_lunatic_is_in_my_head

Schwarzwald said:

jimmyb78 said:

So I put decided to put my little flat on the market last year with my local Yopa agent valuing it at 95k with a carparking space.

I chose the Pay Later option, which is a fee of 1199 after 10 months. My agent assured me an excellent rental property like mine should go easily. 

Well, it hasn't. I first had to drop to 90k, then 85k. Still no offers. At this price I'm already in negative equity and had told my agent at the start that there would be no point putting the flat on the market at this value. I only agreed after the 95k valuation. 

Yesterday he revealed he'd had an offer of 80k and that he didn't believe we could get 85k for the flat now. This is 16% lower than advised. 

I cannot afford to sell at this price, and Yopa want their £1199. Considering the sheer size of the valuation discrepancy do people think i have a case of avoiding the fee due to being badly advised? I just want the place off the market now as the situation seems hopeless. I have raised a complaint but any advise is appreciated. 

As I am stuck on a delayed flight, I just read up Yopa’s T&C, which clearly state:

“The Local Yopa Agent will provide a guide price for marketing the Property for sale. … Ultimately, it will be your decision (as a Seller) to decide on the Marketing Price… 

You agree and acknowledge that the guide price provided by the Local Yopa Agent …. is not a valuation of the Property”

In addition, it also clearly states:

“5.3 IMPORTANT … If you choose Pay Later you agree to pay the Yopa Fee … in full on the earlier of:

a. the Completion of the sale of your Property;

b. the expiry of 10 months from the date your Property is listed by Yopa; or

c. if, after the date your Property is listed by Yopa, you terminate this Agreement or withdraw your Property from the Market at any time, the date of any such cancellation/withdrawal.”

You might be unhappy with the outcome, but their T&Cs seem to be stated pretty clear and transparent. 

On that basis, I dont see how you have any case based on the lack of offers / below your expectations and are due to pay them their fee (unless you can show they failed to provide any other agreed services, which you havent mentioned so far).

T&Cs can’t override legislation, if someone values (or offers a guide price on) a house at 500k and it’s worth 200k then it’s clear they either don’t know what they are doing and lack the skill to perform the service or undertook a misleading action to gain business. 

Problem with the OP is in terms of houses the amount it’s out by is that much.

Worth complaining to see if they will at least reduce the fee. 

canaldumidi

The OP chose to go with a company that offers a service that is considerably cheaper than, and distinct from, the traditional high street estate agents' service.

It is cheaper precise because payment is due irrespective of whether a sale is achieved or not. Traditional EAs charge more but run the risk of getting no payment, even after running up admin and marketing costs.

As for the valuation, no EA whether 'traditional' or not does more than offer guidance. If you want something more reliable, you pay an RICS surveyor for a formal Valuation similar to what a mortgage lender (or Probate Executor) would do.

Schwarzwald

the_lunatic_is_in_my_head said:

Schwarzwald said:

jimmyb78 said:

So I put decided to put my little flat on the market last year with my local Yopa agent valuing it at 95k with a carparking space.

I chose the Pay Later option, which is a fee of 1199 after 10 months. My agent assured me an excellent rental property like mine should go easily. 

Well, it hasn't. I first had to drop to 90k, then 85k. Still no offers. At this price I'm already in negative equity and had told my agent at the start that there would be no point putting the flat on the market at this value. I only agreed after the 95k valuation. 

Yesterday he revealed he'd had an offer of 80k and that he didn't believe we could get 85k for the flat now. This is 16% lower than advised. 

I cannot afford to sell at this price, and Yopa want their £1199. Considering the sheer size of the valuation discrepancy do people think i have a case of avoiding the fee due to being badly advised? I just want the place off the market now as the situation seems hopeless. I have raised a complaint but any advise is appreciated. 

As I am stuck on a delayed flight, I just read up Yopa’s T&C, which clearly state:

“The Local Yopa Agent will provide a guide price for marketing the Property for sale. … Ultimately, it will be your decision (as a Seller) to decide on the Marketing Price… 

You agree and acknowledge that the guide price provided by the Local Yopa Agent …. is not a valuation of the Property”

In addition, it also clearly states:

“5.3 IMPORTANT … If you choose Pay Later you agree to pay the Yopa Fee … in full on the earlier of:

a. the Completion of the sale of your Property;

b. the expiry of 10 months from the date your Property is listed by Yopa; or

c. if, after the date your Property is listed by Yopa, you terminate this Agreement or withdraw your Property from the Market at any time, the date of any such cancellation/withdrawal.”

You might be unhappy with the outcome, but their T&Cs seem to be stated pretty clear and transparent. 

On that basis, I dont see how you have any case based on the lack of offers / below your expectations and are due to pay them their fee (unless you can show they failed to provide any other agreed services, which you havent mentioned so far).

T&Cs can’t override legislation, if someone values (or offers a guide price on) a house at 500k and it’s worth 200k then it’s clear they either don’t know what they are doing and lack the skill to perform the service or undertook a misleading action to gain business. 

Problem with the OP is in terms of houses the amount it’s out by is that much.

Worth complaining to see if they will at least reduce the fee. 

While true reg T&Cs not overriding legislation, totally irrelevant here.

Or which “legislation” are you referring to?

EAs are not licensed and 10% deviation between estimate/guidance below offer (all while interest rate environment totally changed in last 10 months) cannot seriously be described as “misleading”, at best it was marketing and that’s just part of being a good sales person - it goes both ways: to win the mandate to market a property from the Seller, then to sell it the Buyer.

Your made-up 60% deviation example has no practical relevance here neither, simply didnt occur like that.

Worth complaining is always worth a try if unhappy with a service or product, but there simply doesnt seem to be any basis.

GDB2222

Schwarzwald said:

the_lunatic_is_in_my_head said:

Schwarzwald said:

jimmyb78 said:

So I put decided to put my little flat on the market last year with my local Yopa agent valuing it at 95k with a carparking space.

I chose the Pay Later option, which is a fee of 1199 after 10 months. My agent assured me an excellent rental property like mine should go easily. 

Well, it hasn't. I first had to drop to 90k, then 85k. Still no offers. At this price I'm already in negative equity and had told my agent at the start that there would be no point putting the flat on the market at this value. I only agreed after the 95k valuation. 

Yesterday he revealed he'd had an offer of 80k and that he didn't believe we could get 85k for the flat now. This is 16% lower than advised. 

I cannot afford to sell at this price, and Yopa want their £1199. Considering the sheer size of the valuation discrepancy do people think i have a case of avoiding the fee due to being badly advised? I just want the place off the market now as the situation seems hopeless. I have raised a complaint but any advise is appreciated. 

As I am stuck on a delayed flight, I just read up Yopa’s T&C, which clearly state:

“The Local Yopa Agent will provide a guide price for marketing the Property for sale. … Ultimately, it will be your decision (as a Seller) to decide on the Marketing Price… 

You agree and acknowledge that the guide price provided by the Local Yopa Agent …. is not a valuation of the Property”

In addition, it also clearly states:

“5.3 IMPORTANT … If you choose Pay Later you agree to pay the Yopa Fee … in full on the earlier of:

a. the Completion of the sale of your Property;

b. the expiry of 10 months from the date your Property is listed by Yopa; or

c. if, after the date your Property is listed by Yopa, you terminate this Agreement or withdraw your Property from the Market at any time, the date of any such cancellation/withdrawal.”

You might be unhappy with the outcome, but their T&Cs seem to be stated pretty clear and transparent. 

On that basis, I dont see how you have any case based on the lack of offers / below your expectations and are due to pay them their fee (unless you can show they failed to provide any other agreed services, which you havent mentioned so far).

T&Cs can’t override legislation, if someone values (or offers a guide price on) a house at 500k and it’s worth 200k then it’s clear they either don’t know what they are doing and lack the skill to perform the service or undertook a misleading action to gain business. 

Problem with the OP is in terms of houses the amount it’s out by is that much.

Worth complaining to see if they will at least reduce the fee. 

While true reg T&Cs not overriding legislation, totally irrelevant here.

Or which “legislation” are you referring to?

EAs are not licensed and 10% deviation between estimate/guidance below offer (all while interest rate environment totally changed in last 10 months) cannot seriously be described as “misleading”, at best it was marketing and that’s just part of being a good sales person - it goes both ways: to win the mandate to market a property from the Seller, then to sell it the Buyer.

Your made-up 60% deviation example has no practical relevance here neither, simply didnt occur like that.

Worth complaining is always worth a try if unhappy with a service or product, but there simply doesnt seem to be any basis.

The deviation here is 20%, which is unreasonable. 

It does depend how the estimate was worded, though.  "It might be worth trying a £95k asking price" is different from "I am confident that we can achieve close to £95k".  If Yopa were foolish enough to say the latter, I'd be seeing them in court.

canaldumidi

GDB2222 said:

Schwarzwald said:

the_lunatic_is_in_my_head said:

Schwarzwald said:

jimmyb78 said:

So I put decided to put my little flat on the market last year with my local Yopa agent valuing it at 95k with a carparking space.

I chose the Pay Later option, which is a fee of 1199 after 10 months. My agent assured me an excellent rental property like mine should go easily. 

Well, it hasn't. I first had to drop to 90k, then 85k. Still no offers. At this price I'm already in negative equity and had told my agent at the start that there would be no point putting the flat on the market at this value. I only agreed after the 95k valuation. 

Yesterday he revealed he'd had an offer of 80k and that he didn't believe we could get 85k for the flat now. This is 16% lower than advised. 

I cannot afford to sell at this price, and Yopa want their £1199. Considering the sheer size of the valuation discrepancy do people think i have a case of avoiding the fee due to being badly advised? I just want the place off the market now as the situation seems hopeless. I have raised a complaint but any advise is appreciated. 

As I am stuck on a delayed flight, I just read up Yopa’s T&C, which clearly state:

“The Local Yopa Agent will provide a guide price for marketing the Property for sale. … Ultimately, it will be your decision (as a Seller) to decide on the Marketing Price… 

You agree and acknowledge that the guide price provided by the Local Yopa Agent …. is not a valuation of the Property”

In addition, it also clearly states:

“5.3 IMPORTANT … If you choose Pay Later you agree to pay the Yopa Fee … in full on the earlier of:

a. the Completion of the sale of your Property;

b. the expiry of 10 months from the date your Property is listed by Yopa; or

c. if, after the date your Property is listed by Yopa, you terminate this Agreement or withdraw your Property from the Market at any time, the date of any such cancellation/withdrawal.”

You might be unhappy with the outcome, but their T&Cs seem to be stated pretty clear and transparent. 

On that basis, I dont see how you have any case based on the lack of offers / below your expectations and are due to pay them their fee (unless you can show they failed to provide any other agreed services, which you havent mentioned so far).

T&Cs can’t override legislation, if someone values (or offers a guide price on) a house at 500k and it’s worth 200k then it’s clear they either don’t know what they are doing and lack the skill to perform the service or undertook a misleading action to gain business. 

Problem with the OP is in terms of houses the amount it’s out by is that much.

Worth complaining to see if they will at least reduce the fee. 

While true reg T&Cs not overriding legislation, totally irrelevant here.

Or which “legislation” are you referring to?

EAs are not licensed and 10% deviation between estimate/guidance below offer (all while interest rate environment totally changed in last 10 months) cannot seriously be described as “misleading”, at best it was marketing and that’s just part of being a good sales person - it goes both ways: to win the mandate to market a property from the Seller, then to sell it the Buyer.

Your made-up 60% deviation example has no practical relevance here neither, simply didnt occur like that.

Worth complaining is always worth a try if unhappy with a service or product, but there simply doesnt seem to be any basis.

  "It might be worth trying a £95k asking price" is different from "I am confident that we can achieve close to £95k".  If Yopa were foolish enough to say the latter, I'd be seeing them in court.

But I'll lay long odds they didn't say the latter.

Indeed, as Schwarlzwald  pointed out above, their T&Cs apparantly say:

“The Local Yopa Agent will provide a guide price for marketing the Property for sale. … Ultimately, it will be your decision (as a Seller) to decide on the Marketing Price…