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Estate Agents Commission?

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  • 22-02-2006 3:28am
    #1
    awishawash
    Closed Accounts Posts: 135 ✭✭


    Hey everyone, one of my mates is currently bidding on a property and was asking me a few questions, to which I couldnt answer.

    Whats to stop an estate agent from taking a brown envelope and saying your bid was highest? They get paid peanuts commission from a sale dont they?so it would be worth their while taking a few hundred euro 'tip'?
    Why would an estate agent take a week to get back to someone about their bid?Is it cos they werent satisfied with it?

    Have to say I hate dealing with estate agents, its extremely stressful.


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    #2
    SparkyLarks
    Registered Users Posts: 363 ✭✭SparkyLarks


    they get quite a nice comission.
    and secondly because if it ever came out and it would noonewould ever go to them to have there house sold again.

    Estate agents are stressful, remember it is there job to try to get as much money for a property as possible.
    It helps to think probable selling price is guide + 10%
    Don;t be too keen, you might be up against phantom bidders. Take your time, don;t bid back straight away.
    If your bidding on a house try to go see another similar house with the same estate agent.

    If you do;t want to deal with the biddign process but a new house. Price is set.


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    #3
    JimmySmith
    Closed Accounts Posts: 558 ✭✭✭JimmySmith


    It does happen. I have seen the proof too of one doing it.
    Also, theres a thread on askaboutmoney about this very thing

    http://www.askaboutmoney.com/showthread.php?t=22854


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    #4
    MorningStar
    Closed Accounts Posts: 3,031 ✭✭✭MorningStar


    Sparks I think you are being a bit hopeful there. Many estate agents are only employees and if you offer them cash you can get results. I have done it to see houses first. "I'll give you €100 if you let me know about the housese that come up and let me see them first, and €500 if I buy the house" You get results and are not suggesting they make sure your offers is accepted. I guess bad estate agents might take it that way.
    I know an offer I made on a house never got to the seller and that it turned out the estate agents friend bought the house.


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    #5
    lomb
    Registered Users Posts: 6,031 ✭✭✭lomb


    MorningStar wrote:
    I know an offer I made on a house never got to the seller and that it turned out the estate agents friend bought the house.
    Id very well believe that. ive heard numerous stories myself. many vendors are in a weak position with them having to sell not to take bridging finance and hassle. and they believe what the estate agent tells them, whereas no human can value a house, the only way it can be valued is if u put it on an OPEN market and take bids. to create this openness u have to leave it on the market for an optimum period of time, and it needs to be well advertised. the price will be determined by what people are willing to pay.
    a clever friend of mine bought a second hand prime apartment for 15 per cent under market value by offering a small amount below asking, and asking them to take it off the market immediately if they accepted that hed make it a very quick sale.
    the estate agent pressured the vendor into accepting by telling them what they wanted to hear, ie that it was a strong price etc even when it definately wasnt. the reason they did this is that the sooner the sale closes the sooner they get their commision and everyone in business has a cash flow problem.


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    #6
    awishawash
    Closed Accounts Posts: 135 ✭✭awishawash


    Thanks lads, I suppose its not illegal, similar to tipping a waiter for a good seat or a good service. I would presume however that on the bigger deals involving millions there would definitely be such a thing as 'I'll make it worth your while if my offer is successful', or would it be more senior people at the estate agency dealing with it and therefore less likely to take the 'tip/bribe', as it would be in their interests to get the highest price ?? To me that is nothing else but illegal...!


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    #7
    MorningStar
    Closed Accounts Posts: 3,031 ✭✭✭MorningStar


    Oh it it is illegal if they hold back offers but if you are offering a tip you aren't bribing so it could just be the estate agent acting illegally or more specifically against their contract.


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    #8
    [Deleted User]
    Posts: 0 ✭ [Deleted User]


    awishawash wrote:
    Thanks lads, I suppose its not illegal, similar to tipping a waiter for a good seat or a good service.

    Well, dunno if it's illegal, but it's completely wrong and they stand to get completely screwed over by the person they should have been acting for ie. the Vendor, if the Vendor later heard from an unsuccessful bidder what they were willing to pay. So while they make a few bob, think an auctioneer would have to be very very stupid to start messing around with their own client. I appreciate that they will lie cheat and steal to get more for the Vendor, but to lie cheat and steal and cost the Vendor, their own client, money is a very very risky business. I heard of it happening once, the Vendor threatened the auctioneer who ended up paying him a lot more to shut him up than the difference between the lost bid and the successful lower bid.


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