Advice needed please

wendfrombev

Hello

I am currently selling my house through smoove with Beal Homes.

They are marketing my property for 118000 and it has been up for sale for 4 weeks now. 3 viewings but no offers.

I got a phone call today to say that I will have to lower my price to £114950 to get a sale.

The house I have reserved is not even built yet selling for 124995.

I was quite amazed as to this 4 week period to sell. The agent was quite pushy and says that the house is not worth 118000.

I have looked on rightmove etc to see other houses in my area for up for 120 - 124995.

I'm really confused as to what to do as I signed a contract with them for them to market my property.

I have paid out £100 valuation fee, £300 for a HIP and £250 for reserving the house I want to buy.

They told me it is not built until August/September so why the rush???

Is there a possibilty that I can say no to reducing the price, what would happen?
Also if I don't buy their house I will lose £250 and pay 3% of the value of my house if I sell.

I'm so confused with this, can I barter them down for the house I want to buy, if I reduce mine, I am in my rights to do this?

I'm getting a bit stressed out over this, I don't see what the rush is personally.

Any advice would be greatly appreciated

Running_Horse

£100 valuation fee? Never heard of that before. I advise you remind the EA you are employing them, not the other way round, and why so few viewings? Check the terms of your contract; if time is on your side, you could switch agents in a few weeks. Might perk them up a bit. Oh, and you decide the price, not them.

lynnexxxo

I assume that you are part exchanging for a new property? tell them of course you will reduce your price - but only if the new house you are purchasing is reduced by the same percentage.

You might loose £250 by pulling out of the new house purchase, but what if come August they are selling the same houses for less than you paid - you might end up paying thousands more than your neighbours.

Doozergirl

Can you let us know what part of the contract mentions paying them 3% of your sale price :eek: and what it says exactly.

If you pull out and you haven't even exchanged I can't see how they can hold you to this unless it's some particularly ownerous sole selling rights contract. 3% is mental!

Mrs_Thrify

HelloWendfrombev.frombev,isthatYorkshire?
My advice-it sounds like you have fallen into the Ea housing trap(I did too!)
The Ea will put your house on the market for any price you say - to tie you into their branch.Once hooked you can stay @ the same selling price and sometimes wait months OR start dropping the price.
Meanwile declutter and get the paint out! Magnolia walls and white ceilings all around.Put rooms back to what they should be,ie... a dining room with a dining room table.
Four weeks is only the beginning! our humble home has been on the market for 6 months and been reduced 4 times@ 5,000 a go.

Best of luck....Julie

seraphina

Is your estate agent having financial difficulties? Estate agents rely on turnover for a profit (if they don't sell your house, they don't get any commission), so if they are struggling they'll do anything to get a house sold. This, combined with the 3% suggests that they aren't doing too well for themselves.

It's worth trying to see if you can get your new build reduced - don't forget to lay it on thick about how concerned you are about the housing market etc!

Poppy9

wendfrombev wrote: »

I was quite amazed as to this 4 week period to sell. The agent was quite pushy and says that the house is not worth 118000.

I have looked on rightmove etc to see other houses in my area for up for 120 - 124995.

If your house is already competitively priced compared to similar houses in your area then it should have sold. Have the other houses in your area sold?

wendfrombev

Doozergirl wrote: »

Can you let us know what part of the contract mentions paying them 3% of your sale price :eek: and what it says exactly.

If you pull out and you haven't even exchanged I can't see how they can hold you to this unless it's some particularly ownerous sole selling rights contract. 3% is mental!

Hello Doozergirl

It says in my contract that "if beal Developments find me a buyer ( a buyer being defined as a party ready willing and able to proceed during the marketing period subject only to contract exchange) and I withdraw from the purchase of the Beal home I will pay Beal developments a fee 0f 5% of the sale price of my property"

wendy

wendfrombev

seraphina wrote: »

Is your estate agent having financial difficulties? Estate agents rely on turnover for a profit (if they don't sell your house, they don't get any commission), so if they are struggling they'll do anything to get a house sold. This, combined with the 3% suggests that they aren't doing too well for themselves.

It's worth trying to see if you can get your new build reduced - don't forget to lay it on thick about how concerned you are about the housing market etc!

Hya Seraphina

Beals are paying for the marketing costs for the Estate agent.
I don't particularly like this estate agent but they are one of the bigger ones in this county so I have to be with them for the time being.
They valued my house last year and they were the ones who gave me a really low figure so i was expecting that from them.

I'll try and get a reduction for the new build and stand my ground, thanks for the reply

Wendy

Stevie1

wendfrombev wrote: »

Hello Doozergirl

It says in my contract that "if beal Developments find me a buyer ( a buyer being defined as a party ready willing and able to proceed during the marketing period subject only to contract exchange) and I withdraw from the purchase of the Beal home I will pay Beal developments a fee 0f 5% of the sale price of my property"

wendy

Wendy,

The "ready willing and able" buyer clause is problematic and unfortunately means bad news. Which? say on their guide to selling house that "If the contract contains this term, don’t sign it. It will mean you’ll still have to pay
the estate agent for finding you a buyer even if your situation changes and you have to withdraw from the sale"...

wendfrombev

Hi Stevie

Sorry to say but I have already signed it as I really liked the new build property.
I will negotiate with them to reduce the price of the new build.

Thanks
wendy