Views on EA reaction to offer.

cashcans

Hi,

After viewing a property for the 2nd time yesterday, I today put an offer in and would appreciate others views on EA's reaction.

The property is up for £152,950 - needs cosmetically doing up (new kitchen, bathroom,every room completely decorated,floored,new doors,and some walls plastering etc..) however it is double glazed and has GCH and is basically sound. Done up it would probably sell for approx £162 - 165,000

We are chain free and mortgage is agreed in principal. I explained to the EA because of the work involved,current market and our position we would offer £141,000 - immediately I was told they had had a 'much higher' offer and would I like to go away and rethink. I then said I would go to £143,000, however would not go over that. EA then said that the other offer was still considerably higher - when asked if this other buyer was chain free, EA said it was a cash buyer. It turns out (only as I asked) that this offer has not been accepted(??!). I told EA I could not compete with a cash buyer and a higher offer - and basically our conversation ended.

Why would such a good offer (if it indeed exsists!) not be accepted?

Is the EA obliged to put forward my offer?

Should I chase it up to see if it has been forwarded?

Thanks

paulus1967

Makes you wonder is the E A fees flat rate or do they charge a % of the sale price.

Spendless

I'd say yes a higher offer than yours might not be accepted,especially since you don't know what the higher offer was for, for whatever reason by the vendor eg they're hoping for asking or near to asking price.

When I sold my house last year the EA would ring me and say things like

Miss T- FTB offered x

Mr L- BTL offered xx

Mrs C- cash buyer offered xxx

and so on, then it was up to me to decide which offer to take IYSWIM

dragonsoup

Yes the estate agent is obliged to pass on your offer. Can you "casually" mention to the vendor you have made a formal offer?

alared

I would contact the seller and tell them exactly what you have told the EA and the reasons for your offer and gage their reaction.
Sometimes EA have their own agenda.
When I bought my first house the EA told me a c0ck and bull story and did`nt pass my offer on.
I contacted the seller direct and when I told them of my offer they immediately rang the EA and told him to take the house off the market as they were accepting my offer.
Turned out the EA had two more in a chain linked to this property and he was greedy for three lots of commission.

bridiej

I'd contact the seller too, maybe just put a letter through the door if you dont want to speak to them face to face.

My inlaws had terrible service when they bought their house, they viewed in on the Saturday rang on the Monday with a full asking price offer. On the Wednesday had a courtest call asking for "feedback" on the viewing, so said they'd put the FAP offer in. Then on the Friday had another courtesy call for "feedback" from the EA manager!!!!!

In the end they put a note through the vendors door - they had no idea an offer had been put in and a whole week had gone by!

cedge

EA's have a completely different agenda to the vendor's.

We recently looked at a house that was on for £198,000 (Reduced from £215,000).

Due to the work required to bring it up to our 'preferred' standard and the maxiumum we could afford, we put in a cheeky offer of £175,000 which was rejected , we then put in our final offer of £181,000 in and the EA said that they were looking for 190,000 minimum, anyway a couple of days later they accepted our offer so don't always go by what the EA says as it is usually not the truth.

John_M_Business

WRT the OP: Even if the other offer is considerably higher than yours, if the vendor is expecting the asking price then he won't accept either offer.

There has been a lot of discussion on this list about the AVERAGE offer acceptance level (c. 94% of asking), but there are houses and flats still being sold at asking.

The EA would know that if another offer of say £147k had been rejected, then there is little point putting forward one of £143k to the vendor.

However, at the same time, it would help A LOT if you reminded the EA that it is their legal duty to inform the vendor of ALL offers.

rchddap1

Sometimes EAs do fib. My sister put an offer on a house. The EA came back saying that there was another offer and that she needed to improve her offer. She refused point blank saying that there were more houses out there. A little while later the EA came crawling back. Turned out hers had been the only offer, and they hadn't put it to the vendor. She simply laughed at them as by that time she had found another house she was more interested in.

Happy_saver_4

An EA is legally bound to put forward to the vendor 'all and any offers recieved'. If he fails to do so you can always report him to his professional body; if he belongs to one!
His association may only slap his wrists. But, it might give him a reminder and a wake up call. It should at least involve him in some undesirable paperwork.

lush_walrus

cedge wrote:

EA's have a completely different agenda to the vendor's.

We recently looked at a house that was on for £198,000 (Reduced from £215,000).

Due to the work required to bring it up to our 'preferred' standard and the maxiumum we could afford, we put in a cheeky offer of £175,000 which was rejected , we then put in our final offer of £181,000 in and the EA said that they were looking for 190,000 minimum, anyway a couple of days later they accepted our offer so don't always go by what the EA says as it is usually not the truth.

Sorry but I think this is quite a wrong assumption what is the EAs agenda if it is different to the Vendor! Ultimately, both the EA and the vendor want houses sold, neither get any money for properties not selling!

Probably what you will find with this situation is that the vendor had previously stated to the EA what price they would accept (ie 190,000) the EA has then advised you of this and later the vendor has changed their mind (as humans do!).

I would agree that don't take the EAs word as the final word, as ultimately they are advisors to the vendor rather than the decision maker, but thats why EAs put forward all offers, so that the person who makes the desision make its!

Anyway, the point I was going to make prior to spotting this, was that the argument that the cost of doing the work etc should be taken off the asking price is not a good one. The EA will have valued it in its present condition in order to assertain the asking price, not valued it as if it were pristene. But its always worth an offer, in this case it would appear that someone has offered higher and the vendor may well not have accepted their offer as they are probably waiting to see if they will get more than that offer or may have asked to keep the property on the market until the survey has been carried out, and therefore not officially accepted an offer till that point. Or it could simply be that the offer had come through a day or two before yours and hasnt been accepted as the vendor is taking time to consider the offer (very normal thing).

The EA is abliged to put forward your offer and has been very fair to you to warn that there is already a higher offer, as ultimately not many vendors accept a lower price if a higher one has been offered. What will probably happen is that the EA will call the vendor and let him know there has been another offer put forward at a lower price (of whatever your offer) and your lower offer will helpto make the vendor see they are getting a good offer from the OP.

Either way, unless you are willing to match or better the OP offer, then it doesnt sound like it is worth persuing. Keep an eye on it, as sometimes properties fall through and it might come back available at a price you can afford, never know.