Estate agents conflict of interest?

DullGreyGuy

Homebuyer2244 said:

DullGreyGuy said:

Who is paying for the original report?

Presumably your agent is getting a percentage of the sale price and as such the conflict is more that their related builders would inaccurately report no problems to maximise the sale price. I struggle to see how a detrimental report in any way benefits the agency?

The buyer paid for the original report. The estate agents are not taking a percentage of the sale, the fees charged to sell the property is a fixed rate, regardless of what the house sells for. The EA would benefit as they are shared owners of the building company. Securing work on the property, that according to an independent specialist isnt needed.

Why do you think they'd get the building work? If I hire a surveyor they are probably the last person that springs to mind to then go on and do the work. Suveying and building work etc are different skill sets. 

They could just as easily lose the sale when you won't give the £4k reduction and the buyer won't stick to their original offer and then have to do more work to try and get another buyer. 

propertyrental

Reject the reduced offer via the EA and give the EA your own report. Make clear you are happy to proceed at the original agreed price.

At the same time,  serve formal notice on the EA to end your contract (assuming you are at the end/near the end of the minimum contract period) and tell the EA if the sale falls through you will re-market via a different agent.

It is hugely in the EA's interests to see your sale completes. Whether that is at the original prioce, or a higher/lower one, makes an infintesimal difference to the EA's commission.

penners324

Report the Estate agent to the Ombudsman 

Bigphil1474

For me, it would depend on the price of the property and what you need to get from it. The FTB buying our house, had their survey done and he got his mortgage valuation and was okay with the survey findings, so on we go. What he didn't know is that I'd have been happy to go down another £5-£10k to make sure we keep on moving. 

Personally I wouldn't get too het up about the potential conflict of interest and perceived dodgy dealings of the EA. There might be even more dodgy dealings going on that you don't know about, or it might not be as bad as you think. Do you want to sell at £4k less? If the answer is no, tell them and it's then down to the buyer to decide. If Yes, then tell them and off you go. It's all up to you. Probably worth looking for another EA if the sale falls through though.

Postik

Bigphil1474 said:

Personally I wouldn't get too het up about the potential conflict of interest and perceived dodgy dealings of the EA. There might be even more dodgy dealings going on that you don't know about, or it might not be as bad as you think. Do you want to sell at £4k less? If the answer is no, tell them and it's then down to the buyer to decide. If Yes, then tell them and off you go. It's all up to you. Probably worth looking for another EA if the sale falls through though.

^ This is what I think.

I would send them your own report.  And then decide whether you want to knock £4k off or not.  And if not then the buyer needs to decide whether they want to go ahead or not.  If it falls through, then get a new agent.  If it goes ahead then I wouldn't rock the boat.

Albermarle

Postik said:

Bigphil1474 said:

Personally I wouldn't get too het up about the potential conflict of interest and perceived dodgy dealings of the EA. There might be even more dodgy dealings going on that you don't know about, or it might not be as bad as you think. Do you want to sell at £4k less? If the answer is no, tell them and it's then down to the buyer to decide. If Yes, then tell them and off you go. It's all up to you. Probably worth looking for another EA if the sale falls through though.

^ This is what I think.

I would send them your own report.  And then decide whether you want to knock £4k off or not.  And if not then the buyer needs to decide whether they want to go ahead or not.  If it falls through, then get a new agent.  If it goes ahead then I wouldn't rock the boat.

I agree that would be a sensible way forward.
In any case damp surveys do not have the best reputation for accuracy/being honest, regardless of whether the EA is involved or not.