Can Auctioneer Change Your House Price?

Shazanne

I have a house for sale at the moment with a well known Midlands auctioneer. I was checking it out on internet last night and found that the auctioneer had reduced the asking price for my house without counsulting me or getting any permission to do so. This is the second time this has happened! I complained the first time but now is has happened again. Is this ethical practice? What can I do about it?

chat247

Unethical and unprofessional, you are the client, they should take your instructions and offer their advice not try to bypass you. At the end of the day you are paying their fee don't forget that. A well known midlands agent under the biggest national franchise is well known for this type of unscruplous behaviour and because they charge an up front marketing/listing fee (no one explains in detail how this is used to help sell your property!) they feel that they can push their clients into accepting this and similar practices. You could report them to whatever body they're members of but really the only thing you can do is take your property off their books and seek a more professional auctioneer.

Shazanne

I certainly will be removing my property from their books. They will no doubt then issue me with a bill for internet advertising etc, which will lead to the next argument as I don't believe I should have to pay this. The house has been on the market for eight months (nothing strange there I know) but I am now a bit concerned that if I switch to another agent it will look as though I am panicking about trying to sell it! The house is in a small town where everyone knows everything, if you get my drift!
I feel very aggrieved that the auctioneer has put me in this position. The new asking price leaves me no room for negotiation with an interested buyer at all as it is my very bottom line on the property. I feel so frustrated and upset over all this and I just don't know what to do for the best.

Coriolanus

Is there a policy against naming and shaming? I for one would like to know the name of the auctioneer, so as to be able to avoid them... But if it's against the rules I understand.

Anyway, that aside, if you do decide to move auctioneer, you could quietly explain the reason to the new one. I'm sure they know all about their competitors practises.

stepbar

I'm sure he / she can't but on the flip side I'm sure he / she thinks the price you are looking for is not realistic and if he / she brought this up, you'd never agree.

Victor

Nevore wrote: »

Is there a policy against naming and shaming?

Lets not go there, but I can't stop anyone PMing anyone. The risk is that user XYZ is only here to defame the auctioneer.

After 8 months, why aren't you considering a lower price? Prices are going down, not up, so if it hasn't sold in that time, it is unlikely to sell at that price. Just because you have borrowings to repay, doesn't mean that someone is going to come up with the money.

Shazanne

I appreciate all that has been said and the thoughts behind those comments. However, the asking price is not unrealistic, in spite of the current climate. And I have dropped the price over the couse of the eight months that the property has been on the market.
However, my point in all this is whether an auctioneer can just decide to drop the advertised price of my house by quite a substantial amount without even telling me? Surely, as the owner of the property, I should be consulted if a change is being made or, indeed, if the auctioneer feels that dropping the price is in my best interest.
The house price is not the issue here - it's the unethical behaviour of the auctioneer. I should not be in a position where I log onto the internet and discover that my house price has gone down. And I dont even know when this happened!
As regards "naming and shaming", I am not out to cause trouble for anyone. I have not even spoken to the auctioneer yet as I only discovered this on Friday night so it will be tomorrow morning before I can contact the office. I just need to know if this is normal or acceptable practice - it doesn't sound to me like it is. I have never sold a house before so maybe this is something that happens frequently?

Graces7

Is he a member of a professional organisation?

It will say on the web site

IAPVI I think is one.

Complain to them directly.

They have a good deal of clout over their members and can also recommend a better auctioneer.

We have done this very successfully

Shazanne

Graces7 wrote: »

Is he a member of a professional organisation?

It will say on the web site

IAPVI I think is one.

Complain to them directly.

They have a good deal of clout over their members and can also recommend a better auctioneer.

We have done this very successfully

Yes - the biggest group in the country I believe. I think my first step will have to be taking the house off their books and, depending on the reaction I get when I contact them today, I will consider what further action to take. Thanks for you advice.

ellejay

From a buyers point of view, I would say your Estate Agent lowered the price to just generate some interest.

If they they get a few viewings from the lower price, they'll know it's simply not selling because asking price is too high. -Regardless of what you think is a significant price reduction. Could be that asking price was OTT in first place.

Anyway, once the Estate Agents hooks a few interested parties, he'll no doubt try to start a bidding war. So possibly, you won't end up with as big a drop as you think.

I qualify my thoughts above because of my own personal experience in trying to buy, in my own area.

Op, sit tight and see what your EA has to say.

LJ

the ostrich

I don't believe you understand the basics here, you are more concerned that the agent may have acted improperly, instead of concentrating on the issue of selling your property.
Currently house prices are falling by approximately 10 per cent per annum, this is a fact not fiction. In the 8 months that you property has been on the market, if it was originally advertised at €300k, in 4 months time it will be worth only €270k. By that time you will be lucky to get a bid over €250k. Its a buyers market, and overpriced properties, such as yours will remain unsold.
Take a reality check here, and think that maybe your agent might have been acting in your best interest.

Shazanne

ellejay wrote: »

From a buyers point of view, I would say your Estate Agent lowered the price to just generate some interest.

If they they get a few viewings from the lower price, they'll know it's simply not selling because asking price is too high. -Regardless of what you think is a significant price reduction. Could be that asking price was OTT in first place.

Anyway, once the Estate Agents hooks a few interested parties, he'll no doubt try to start a bidding war. So possibly, you won't end up with as big a drop as you think.

I qualify my thoughts above because of my own personal experience in trying to buy, in my own area.


Have just spoken to my agent who has basically said what you have just said. She says that by lowering the price she will tell perspective buyers that the house is priced to sell and as been cut to the minimum. Also says that other properties in the area are similarily priced and have sold. My house is attracting interest but no actual offers. I have agreed to leave it with this auctioneer for a few weeks to see what happens and, if its still not moving in any way towards a sale, I will probably have to consider renting it out.
I still do not agree with the fact that I was not consulted about reducing the price in advance of it happening. Even if it was the right thing to do, surely I should have been consulted?
Best of luck with your house purchase - fancy buying mine??:D:D:D

Graces7

While all that is said here may well be true and wise, the agent should have consulted with his client before doing this.

He is only the agent, not the owner and it is his job to keep his client informed before he changes the price.

And get her agreement.

Else his client could well sue for the difference. And rightly so.

the ostrich wrote: »

I don't believe you understand the basics here, you are more concerned that the agent may have acted improperly, instead of concentrating on the issue of selling your property.
Currently house prices are falling by approximately 10 per cent per annum, this is a fact not fiction. In the 8 months that you property has been on the market, if it was originally advertised at €300k, in 4 months time it will be worth only €270k. By that time you will be lucky to get a bid over €250k. Its a buyers market, and overpriced properties, such as yours will remain unsold.
Take a reality check here, and think that maybe your agent might have been acting in your best interest.

Shazanne

the ostrich wrote: »

I don't believe you understand the basics here, you are more concerned that the agent may have acted improperly, instead of concentrating on the issue of selling your property.
Currently house prices are falling by approximately 10 per cent per annum, this is a fact not fiction. In the 8 months that you property has been on the market, if it was originally advertised at €300k, in 4 months time it will be worth only €270k. By that time you will be lucky to get a bid over €250k. Its a buyers market, and overpriced properties, such as yours will remain unsold.
Take a reality check here, and think that maybe your agent might have been acting in your best interest.

I acknowledge what you are saying and am fully aware of the property market at the present time - in my line of work I have to be. However, my house is not over-priced and I take offence to your suggestion that it is. In fact, in the opinion of another auctioneer in the region (who is a business acquaintance of mine) the property was priced to sell. It has attracted a great deal of interest but people are finding it impossible to secure mortgages. However, as I have stated, the issue I have at present is not with the price - it is simply with the fact that an auctioneer can make a substantail reduction to the price of the house without informing the client. If a client wishes their house to be advertised at twice its realistic value, surely it it their decision to do so? Equally, if a client is advised to drop the price below what they can accept, they should be given the option of withdrawing it from the market. Put simply, its the clients house and the client decision.

D3PO

the ostrich wrote: »

I don't believe you understand the basics here, you are more concerned that the agent may have acted improperly, instead of concentrating on the issue of selling your property.
Currently house prices are falling by approximately 10 per cent per annum, this is a fact not fiction. In the 8 months that you property has been on the market, if it was originally advertised at €300k, in 4 months time it will be worth only €270k. By that time you will be lucky to get a bid over €250k. Its a buyers market, and overpriced properties, such as yours will remain unsold.
Take a reality check here, and think that maybe your agent might have been acting in your best interest.

This isnt about basics its about agent behaviour.

If you want to price your house at a certian level your entitled to do so regardless of weather thats above or below the market price. If the agent thinks your making a wrong decision then they need to talk to you about it, not go and do whatever the hell they like in regards to the advertised asking price.

If you had money and gave it to an investment broker and told him you wanted it put into a low interest rate account earning little or no interest and they decided you were makign a wrong decision and invested it in greek government debt would that be allowed ? No becasue you make the decision and they act on your behalf.

This is no different.

Ste.phen

Graces7 wrote: »

Else his client could well sue for the difference. And rightly so.

The difference between the higher theoretical price that perhaps someone might pay someday, and the lower actual price which someone is willing to actually hand over?

If that were the case there'd be some very bankrupt estate agents...

Ste.phen

D3PO wrote: »

If you had money and gave it to an investment broker and told him you wanted it put into a low interest rate account earning little or no interest and they decided you were makign a wrong decision and invested it in greek government debt would that be allowed ? No becasue you make the decision and they act on your behalf.

This is no different.

It absolutely is; I'm in agreement that the agent shouldn't have done so without consulting the seller, but in your example there's a very real chance of losing actual money unlike the OPs case.

eth0_

OP - have you spoken to the agent? This may just be a miscommunication issue - someone edited the wrong listing on their website, for example.

testicle

eth0_ wrote: »

OP - have you spoken to the agent? This may just be a miscommunication issue - someone edited the wrong listing on their website, for example.

From the OP - "This is the second time this has happened! I complained the first time but now is has happened again."

D3PO

Ste.phen wrote: »

It absolutely is; I'm in agreement that the agent shouldn't have done so without consulting the seller, but in your example there's a very real chance of losing actual money unlike the OPs case.

Your taking the example to literally. The point is the agent is obliged to act on your instructions in both scenarios. They have no scope to make their own decisions

hohojojo

i only noticed this has happened to me too since christmas they dropped my price by 35000 and i only noticed after reading your post and this the second time this has happened and now i just got told that the agents are away for a week

it is a disgrace this is not about the value of the house its about a basic criminal way of doing business they are policed by themself and with no recourse

estates agents in ireland are unbelievable how they can be paid by a person to do a job and there is no way of knowing if they are and i can't understand how you can pay for something like this knowing that they have only there own interests at heart

in my eyes untill ireland wakes up to this type of behaviour and stops letting the government away with unregulated business types like this and the legal practices this country can only goin one direction and thats down even further than it is now

i am irish and i hate this place have since i was young but now it makes me sick to admit i am irish, criminal every were and now they don't even need to hide it

sorry for the rant!

the ostrich

D3PO wrote: »

This isnt about basics its about agent behaviour.

If you want to price your house at a certian level your entitled to do so regardless of weather thats above or below the market price. If the agent thinks your making a wrong decision then they need to talk to you about it, not go and do whatever the hell they like in regards to the advertised asking price.

If you had money and gave it to an investment broker and told him you wanted it put into a low interest rate account earning little or no interest and they decided you were makign a wrong decision and invested it in greek government debt would that be allowed ? No becasue you make the decision and they act on your behalf.

This is no different.

At the end of the day, yes, this agent should have contacted her first, but I suspect this vendor is like thousands of others in Ireland at present, who have properties up for sale at grossly inflated prices, with their heads buried well in the sand, hoping for a miracle that never comes.
She is probably getting frustrated with the overall situtation, and no doubt the agent.
She has every right to move to another agent of her choice if she wishes., but it won't get the house sold any quicker.
Only dropping the price to todays (not 2005) market level will achieve this.

D3PO

the ostrich wrote: »

At the end of the day, yes, this agent should have contacted her first, but I suspect this vendor is like thousands of others in Ireland at present, who have properties up for sale at grossly inflated prices, with their heads buried well in the sand, hoping for a miracle that never comes.
She is probably getting frustrated with the overall situtation, and no doubt the agent.
She has every right to move to another agent of her choice if she wishes., but it won't get the house sold any quicker.
Only dropping the price to todays (not 2005) market level will achieve this.

Exactly the agent should have contacted the OP first. If and I cant comment on this case the agent believes the vendor isnt being realistic with their pricing nobody is forceing them to keep the property on their books, if they dont like the situaiton they need to tell the vendor they will be dropping the property from their books.

As long as their willing to act as the agent like it or not they must pander to the requirments of the seller. Its not a subject of debate

ellejay

Shazanne wrote: »

ellejay wrote: »

Best of luck with your house purchase - fancy buying mine??:D:D:D

No Thanks lol!!

As a matter of interest OP, if the EA advertised the house for more rather than less, would you be so upset that EA ddin't consult with you?

I'm guessing no!

EA's will do anything, say anything and play any amount of games to make a sale, and get as much commission as possible.

The only side EA's are interested in, are their own.

the ostrich

http://www.herald.ie/opinion/columnists/dan-white/dan-white-has-my-house-lost-50pc--in-value-over-three-years-2091871.html

Shazanne

ellejay wrote: »

Shazanne wrote: »

No Thanks lol!!

As a matter of interest OP, if the EA advertised the house for more rather than less, would you be so upset that EA ddin't consult with you?

I'm guessing no!

EA's will do anything, say anything and play any amount of games to make a sale, and get as much commission as possible.

The only side EA's are interested in, are their own.

Actually I would have been upset if that had happened. My point all along has not been in relation to the price, but to the fact that I was not consulted. If the EA had risen the price that could be prohibitive to a sale so, naturally, I would be annoyed over that. The fact is that the house is mine and any decisions made in relation to it should, at the very least, be in consultation with me. I did not sign any document or agree in any way to give the EA sole and total control of my house when I put it on the market. The EA is supposed to be working for me, or at least with me!

ricman

If you are in a hurry to sell..see what other houses in the area,same spec,size, are going for ,price a bit less ,maybe ten per cent, prices are going down every year.
The price is only what people will pay for it.I Expect prices to be going down, FOR the next 6 years, we are in a economic crisis, when, shops are closing, people are losing jobs ,prices go down.can you afford2 SELL, say its valued at 170, put it on the market at 150.
IN dublin some areas have seen price drops of 40percent.
IF you wanna sell you have got 2be realistic.
LIKE spain we were in a bubble, prices were pushed up to unsustainable levels.BUT it goes both ways the house you buy should be cheaper too.
IF YOU got a job 100 miles away then you will have too sell up at some point.
AT least the houses in the midlands never reached the 300k mark.

D3PO

ricman wrote: »

If you are in a hurry to sell..see what other houses in the area,same spec,size, are going for ,price a bit less ,maybe ten per cent, prices are going down every year.
The price is only what people will pay for it.I Expect prices to be going down, FOR the next 6 years, we are in a economic crisis, when, shops are closing, people are losing jobs ,prices go down.can you afford2 SELL, say its valued at 170, put it on the market at 150.
IN dublin some areas have seen price drops of 40percent.
IF you wanna sell you have got 2be realistic.
LIKE spain we were in a bubble, prices were pushed up to unsustainable levels.BUT it goes both ways the house you buy should be cheaper too.
IF YOU got a job 100 miles away then you will have too sell up at some point.
AT least the houses in the midlands never reached the 300k mark.

do you actually read the threads on here ? this has nothing to do with the topic of conversationv:rolleyes::rolleyes:

swe_fi

D3PO thank you

Just read this thread randomly. A person asks a question about what is no doubt at the very least unethical behavior (by an estate agent) and ends up getting attacked for being unreasonable and having an overpriced house (there is no mention of price, area, nothing!). Behavior like this amazes me.

Shazanne

Hi Swe Fi - thank you! That is exactly the point I've been making all along. All I ever wanted to know was if the EA's behaviour was ethical/common practice. I have never sold a house before (Thank God!) so, for all I knew this could be common practice - albeit unfair practice. And you're right - I have been told I am asking an unrealistic price - altho I never mentioned a price, a house type or an exact location. On occasions, I was made to feel as though I was totally stupid! Anyway, enough of that, and thank you for putting it right - and so eloquently!:)

Dymo

Do the OP not realise that the asking price is the price used for marketing purposes and serves no other purpose than a guide price. You own the house and you decide what the house sells for not the estate agent. The only reason why he would lower the price is to generate interest, he can't sell it at that price!. I just think the OP is wondering what the neighbours would say if they saw their house was being lowered in price. If it can't get interest at the lower price it's obvious the it won't sell at the higher price.