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  • FIRST POST
    • muvvvalac
    • By muvvvalac 7th Feb 18, 12:21 PM
    • 4Posts
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    muvvvalac
    Contacting seller directly to offer
    • #1
    • 7th Feb 18, 12:21 PM
    Contacting seller directly to offer 7th Feb 18 at 12:21 PM
    Hi all

    need help

    i have seen a house few days back and liked the house, house costs 450k and i was told by seller while viewing that they are expecting atleast 400k. but i made silly mistake and offered 370k to start with then increased to 405k, all communication happened through agent. My earlier offers got rejected and I asked agent1 to put forward my offer as 422k but it got rejected and as seller thinks that i am time waster and not serious. Not sure if seller thinks like that or agent thinks like that.

    By this time seller changed their agent to a new agent. I was introduced by agent1 but current agent is agent2. Agent2 is marketing the same house for 430k.

    If seller decides to sell house to me then they have to pay commission to both agents. To agent1 since they introduced me and to agent2 as seller will be breaking their current contract.

    I am happy to pay 430k (current sale price) so it covers commission to both agents. But no point of contacting agent1 as agent1 contract expired.

    I am thinking of asking seller directly by writing an email with my apologies of making lower offers initially and to offer their asking price and also I would say happy to pay some security deposit to gain trust and also I will show proof of mortgage etc

    What do you guys suggest

    thanks
Page 1
    • G_M
    • By G_M 7th Feb 18, 12:25 PM
    • 44,452 Posts
    • 52,786 Thanks
    G_M
    • #2
    • 7th Feb 18, 12:25 PM
    • #2
    • 7th Feb 18, 12:25 PM
    It can do no harm.

    Or write to agent 1 confirming your offer.

    or both.

    Don't involve agent 2 as tthis will confuse matters.
    Last edited by G_M; 08-02-2018 at 10:04 AM.
    • eddddy
    • By eddddy 7th Feb 18, 12:30 PM
    • 6,491 Posts
    • 6,377 Thanks
    eddddy
    • #3
    • 7th Feb 18, 12:30 PM
    • #3
    • 7th Feb 18, 12:30 PM
    If seller decides to sell house to me then they have to pay commission to both agents. To agent1 since they introduced me and to agent2 as seller will be breaking their current contract.
    Originally posted by muvvvalac
    That's not typically the case. The seller usually only has to pay commission to the agent that introduced you (agent1).

    Unless the seller has signed a particularly 'nasty' contract with agent2.

    I am happy to pay 430k (current sale price) so it covers commission to both agents. But no point of contacting agent1 as agent1 contract expired.
    Originally posted by muvvvalac
    No, the 'normal' thing to do is to contact agent1.

    Definitely don't make an offer or start negotiating via agent2. That will almost certainly mean the seller has to pay a fee to both agents.
    • kingstreet
    • By kingstreet 7th Feb 18, 12:32 PM
    • 33,575 Posts
    • 18,211 Thanks
    kingstreet
    • #4
    • 7th Feb 18, 12:32 PM
    • #4
    • 7th Feb 18, 12:32 PM
    If seller decides to sell house to me then they have to pay commission to both agents. To agent1 since they introduced me and to agent2 as seller will be breaking their current contract.
    Originally posted by muvvvalac
    How do you know this?

    They may have provided the new agent with a list of viewers undertaken by the old agent with the proviso the old agent gets paid if one of those viewers comes back.

    This is entirely normal for a change of agency, or changing from sole to joint.
    I am a mortgage broker. You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice. Please do not send PMs asking for one-to-one-advice, or representation.
    • muvvvalac
    • By muvvvalac 7th Feb 18, 1:41 PM
    • 4 Posts
    • 0 Thanks
    muvvvalac
    • #5
    • 7th Feb 18, 1:41 PM
    • #5
    • 7th Feb 18, 1:41 PM
    That's not typically the case. The seller usually only has to pay commission to the agent that introduced you (agent1).

    Unless the seller has signed a particularly 'nasty' contract with agent2.



    No, the 'normal' thing to do is to contact agent1.

    Definitely don't make an offer or start negotiating via agent2. That will almost certainly mean the seller has to pay a fee to both agents.
    Originally posted by eddddy

    seller told me that they have to pay commission to both agents.

    I am not willing to approach agent1 so he may be misleading me as he would get his commission anyway if i buy the house within next 6 months even if he does not do any paper work hence thinking of contacting seller directly
    • eddddy
    • By eddddy 7th Feb 18, 2:05 PM
    • 6,491 Posts
    • 6,377 Thanks
    eddddy
    • #6
    • 7th Feb 18, 2:05 PM
    • #6
    • 7th Feb 18, 2:05 PM
    seller told me that they have to pay commission to both agents.

    I am not willing to approach agent1 so he may be misleading me as he would get his commission anyway if i buy the house within next 6 months even if he does not do any paper work hence thinking of contacting seller directly
    Originally posted by muvvvalac
    (FWIW, the time limit is likely to be 2 years, instead of 6 months, if you deal with the seller directly, and not via an EA.)

    Yep - no problem with contacting the seller direct. As long as the seller is happy with that. Some people don't like negotiating direct - especially if/when problems arise.

    For example,

    if the bank valuation comes back at, say, 410k,
    ...or the survey says that roof repairs are required,
    ...or the survey identifies lots of botched DIY that needs redoing

    and you want to renegotiate on price. Sometimes having an EA (a professional negotiator) sitting between buyer and seller can help in finding compromises etc.

    I'd also suggest to the seller to re-read his contract with agent2, to make sure that a fee really would be due.
    • ReadingTim
    • By ReadingTim 7th Feb 18, 2:20 PM
    • 2,738 Posts
    • 3,916 Thanks
    ReadingTim
    • #7
    • 7th Feb 18, 2:20 PM
    • #7
    • 7th Feb 18, 2:20 PM
    The EA doesn't get paid until the house sells. So, unless they were specifically instructed not to by the vendor (their client), why wouldn't the agent pass on your offer(s)? It makes little sense.

    I would suggest it is fairly likely that the vendor remembers you, and the impression you created first time round of being a time-waster. A further approach, especially as convoluted as yours appears to be, merely confirms this.

    Suggest you move on and find yourself a different property, marketed by a different agent and with a different vendor and try again. And sort out your offering strategy so that you seem serious - yes, it's a business transaction, no, it's not a task on 'The Apprentice'.
    • muvvvalac
    • By muvvvalac 8th Feb 18, 9:35 AM
    • 4 Posts
    • 0 Thanks
    muvvvalac
    • #8
    • 8th Feb 18, 9:35 AM
    • #8
    • 8th Feb 18, 9:35 AM
    thanks for all your suggestions and I will give a month time and then write my letter to vendor directly. I may have lost property already so what more harm can happen and it may add only benefit
    • PokerPlayer111
    • By PokerPlayer111 8th Feb 18, 9:46 AM
    • 252 Posts
    • 88 Thanks
    PokerPlayer111
    • #9
    • 8th Feb 18, 9:46 AM
    • #9
    • 8th Feb 18, 9:46 AM
    Can you not reoffer the 422k or make it 425k direct? if its on at 430k thats more than i'd be offering unless it really is amazing. The agent marketing a property for 430k would be liking a 422k offer, its a really good offer in most cases right.
    • Surrey_EA
    • By Surrey_EA 8th Feb 18, 10:01 AM
    • 1,553 Posts
    • 2,041 Thanks
    Surrey_EA
    I am not willing to approach agent1 so he may be misleading me as he would get his commission anyway if i buy the house within next 6 months even if he does not do any paper work hence thinking of contacting seller directly
    Originally posted by muvvvalac
    Why are you not willing to approach agent1 again? It seems to me that you each have a mutual benefit to this reaching a positive conclusion.

    You clearly want to buy this house and regret your initial offer strategy. Unless you buy the property it is highly unlikely that agent1 will receive any commission. Therefore you both have something to gain by working together.

    I would also suggest the seller carefully read the contract with agent2 to make sure confirm the fee arrangement should you buy.
    • muvvvalac
    • By muvvvalac 9th Feb 18, 3:41 PM
    • 4 Posts
    • 0 Thanks
    muvvvalac
    The EA doesn't get paid until the house sells. So, unless they were specifically instructed not to by the vendor (their client), why wouldn't the agent pass on your offer(s)? It makes little sense.

    I would suggest it is fairly likely that the vendor remembers you, and the impression you created first time round of being a time-waster. A further approach, especially as convoluted as yours appears to be, merely confirms this.

    Suggest you move on and find yourself a different property, marketed by a different agent and with a different vendor and try again. And sort out your offering strategy so that you seem serious - yes, it's a business transaction, no, it's not a task on 'The Apprentice'.
    Originally posted by ReadingTim
    of course i will be looking at other properties as well
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