Estate agent commission when they haven’t done the introduction.

eddddy

Dave2345 said:

I have suggested they market both mine and the other property....

Are you saying that there's another level of complexity (which I don't think you've mentioned before)... your current property?

So do you mean the options are something like this...


Option 1

• You get a good offer for your property, but no good offer for the inherited property...
• .... so you sell your property, and keep the inherited property

Option 2

• You get a good offer for the inherited property, but no good offer for your property
• .... so you sell the inherited property, and keep your property

Option 3

• You get a good offer for the inherited property, and a good offer for your property
• .... so then what happens?

Option 4

• You get no good offers for the inherited property, and a no good offers for your property
• .... so then what happens?

I can see why an estate agent might be nervous about getting involved in a complex and uncertain situation like this. There's so much scope for dithering and mind-changing.

(And if I was a potential buyer, I might be nervous about getting involved with this. e.g. You accept my offer on your property, but then you get a good offer for the inherited property, so change your mind.)


As I say, I think you need to give the estate agent some clear parameters. For example, put both properties on the market for 4 weeks, and collect any offers that are made. At the end of 4 weeks, look at the offers for both properties, and decide which property you are going to sell, and therefore which offer you are accepting.

And see if an estate agent will agree to that approach.

Dave2345

I wish I’d summarised it like that from the beginning!! Apologies if I didn’t mention my property before but yes the intention is to market both. Ultimately the inherited property will have to be sold and mine will fund the other part of the purchase. Answers below:

Option 1)

·       You get a good offer for your property, but no good offer for the inherited property...

·       .... so you sell your property, and keep the inherited property

 I sell mine and I buy the portion of inherited property from the other party as ultimately it needs to be sold. If there's no good offers on it there are very few options. 

Option 2)

·       You get a good offer for the inherited property, but no good offer for your property

·       .... so you sell the inherited property, and keep your property

 Yes or I have to make a decision as to the price\offer on the inherited property and is it worth it for me to make up the shortfall on the sale of mine, if it doesn’t stack up financially it gets sold.

Option 3)

·       You get a good offer for the inherited property, and a good offer for your property

·       .... so then what happens?

 

Similar to above, does it stack up financially if it does I buy the inherited property, if it were to go crazily high then it will be a no no. If not inherited property is sold and I try and find somewhere more suitable.

Option 4)

·       You get no good offers for the inherited property, and a no good offers for your property

·       .... so then what happens?

 

The inherited property will have to be sold somehow by reducing the price,. At that point I make a decision as to the feasibility as above. 

 

There is scope for mind changing in any sale and depending on the complexity of the chain a whole raft of problems could crop up and frequently do, it’s the risk the agents take. At the moment there are a lot of unknowns regarding what each property may achieve. 

I agree give the agent a minimum run should I buy it after this I don't want to be charged. Previous attempts to sell the inherited property haven't generated much, if any interest which is why I need to see what interest it generates now.

 

Herzlos

Dave2345 said:

I agree give the agent a minimum run should I buy it after this I don't want to be charged. Previous attempts to sell the inherited property haven't generated much, if any interest which is why I need to see what interest it generates now.

The problem there is that the agent has essentially the same work to do either way, but is taking a risk that you won't sell through them. They'd have the same contractual terms for a reluctant buyer, usually something like a "ready willing and able" clause where if you have a buyer that has a solid chance of completing the purchase but you withdraw from the market you have to pay them comission anyway.

You could always make some kind of counter offer, giving them a higher % comission if it sells through them and a lower % if it doesn't sell through them, or just offer them a fixed fee. Either way you reduce the risk of them working for free.

Dave2345

So I have had a slight bit of success (I think). 

  

One of the local agents who has valued both properties has agreed to not charge any commission on the inheritance property, they will charge nominal admin fee of £90 inc vat for marketing it but no commission if I buy. They will make their commission on mine. They’ve also agreed a 1% sales fee for both which is a fair bit less than we started at. 

Interestingly I spoke to two agents at the same company, person on Wednesday said yes we will charge our commission if I were to buy the inheritance property. He did say it’s up to each individual agent what they do so they can make up as they want it would seem, he did eventually say I’d charge .5% less for no introduction. 

I emailed the agent who’s actually done the valuations and got it writing they would charge £90 admin fee which I’m more than happy with  on the inheritance property. 

We haven’t signed any contracts yet but at least I have it in writing 🤞🤞🤞🤞🤞