What do you think? Is EA selling us short?

fifigogo

A bit of background first: (apologies for the long post)

My brother and I put our house up for sale a couple of months ago and at the time we decided not to go with an EA to save a few quid. We had a few viewings but buyers were aware of the fact we didn't have an EA to negotiate for us so they were bidding well below the asking price and nit picking at everything to get the price down. The last lady who viewed the house was very interested and had a surveyor (her brother) out to check all is ok, which it is but she said she couldn't offer the asking price. I didn't hear from her for a week but in that week I was contacted by an EA who said he could get us a much higher amount for our house and he wanted to meet with us and get the business so we agreed.He told us about a house he represented on our road and said they got a considerable amount above their asking price. He told us there are buyers very interested in our property and may be able to get 30k+ more for us as our house is better condition than the one he sold down the road. My brother and I decided to go with him. EA increased our asking price by 5k and advertised as per usual. At the same time my brother and I were meeting the EA and considering things, the lady came back to me via email with a very low offer and wanted her mam to view the house. I rejected the offer. She said she was prepared to offer the (original) asking price but her mam had to view the property first. At this point my brother and I already agreed to go with EA and I told the lady that she can, if still interested, enter the bidding process through the EA. She said NO.

Last Monday the For Sale sign went up. On the Wednesday the EA called me and said the lady who'd viewed the house with me twice offered 15k above our asking price. The EA said he knew this lady as she was bidding on a few houses in our area but was out bid and that this is a great first offer for us (even though technically it wasn't her first offer, it's her third). The EA said it might be good to consider it as the phone "wasn't hopping" for viewings of our house. He said he'd see if she can go higher so the following day he called me and said she went up 1k more and that was final offer and we should really consider it as even though there were enquiries about our house, buyers only offered the asking price and not more. He said more houses are going for sale in the area and the lady may bid on another house.

So although the offer is a good offer, it's not the kind of offer the EA said we could get when we first met him plus why all of a sudden was he singing a different tune just a few days after the For Sale sign went up? This guy is getting his fee 1.25% of the sale price with 23% vat on the fee. He didn't even do a viewing and his advert was so average with bad photos. The more I think about it, the more annoyed I get. I feel like there's something underhanded going on. Am I over-reacting?

blindside88

Maybe I'm missing something but he's getting the same lady to pay €16k more than she was willing to pay when dealing with you? If that's the case and you were happy to take the asking price I'd be over the moon if I were you. I'd nearly name my first child after him if he got me €16k more than I wanted. I assume the €16k far outstrips his fee unless you're selling a very expensive house

wellwhynot

As above I am not sure what the problem is. He has got you 16k more than what you have got. I assume his fee is less than 16k so hiring him was a good decision.

wordofwarning

OP the estate agent wants to close ASAP as an extra €1k is only worth another €12.5 in commission for him. He is hardly going to be praying for more notional amounts being bidded on the property.

Ask him for a viewing if you want one. At the end of the day you got your asking price. You can demand a viewing etc if you really want it

fifigogo

blindside88 wrote: »

Maybe I'm missing something but he's getting the same lady to pay €16k more than she was willing to pay when dealing with you? If that's the case and you were happy to take the asking price I'd be over the moon if I were you. I'd nearly name my first child after him if he got me €16k more than I wanted. I assume the €16k far outstrips his fee unless you're selling a very expensive house

Yes it's the same lady. She contacted him as I gave her the info if she wanted to enter the bidding process. The EA will get around 6k from that so we're getting an extra 9k (15k above the asking price) which is good yes.

An extra 9k and you're asking if that's good?

What's wrong with you

fifigogo

The EA didn't have to do anything. He only negotiated an extra 1k from the buyer. She made the offer after I emailed her his details and what he was 'expecting' us to get for the property from other buyers interested in properties in our area. She had already lost out to other bidders on other houses so I guess she wanted to secure this property. He even admitted she made the offer of her own accord.

fifigogo

Deleted User wrote: »

An extra 9k and you're asking if that's good?

What's wrong with you

It's actually well below what he had promised us when he was making his sales pitch. That's my point.

fifigogo

Deleted User wrote: »

An extra 9k and you're asking if that's good?

What's wrong with you

I wasn't asking if it is good. I was agreeing it is still a good offer

astrofool

I'd look at it as the house has been on for a few months, and hasn't really got people jumping at it since then. The EA can only operate on people who bid, and the 30k he suggested is probably an upper end valuation to secure the listing, and only likely to happen if a bidding war ensues.

The fact you did all the groundwork with the one bidder and didn't manage close with her, while he did, is probably what you're paying the estate agent for.

The only question that should matter is "is the offer acceptable", how it arose doesn't matter.

April 73

You made the decision to go with the EA. It's not his fault other buyers haven't suddenly come scrambling from the woodwork.
What are you going to do? Cut him out of the deal? If you really feel he has got money for nothing - then ask him to negotiate on his fee.

In the end of the day you've achieved over the asking price. Part of selling a house is wondering "what if" or "could I have done better?" Let it go. Sell your house & get the EA to deal with the buyer from here on.

fifigogo

April 73 wrote: »

You made the decision to go with the EA. It's not his fault other buyers haven't suddenly come scrambling from the woodwork.
What are you going to do? Cut him out of the deal? If you really feel he has got money for nothing - then ask him to negotiate on his fee.

In the end of the day you've achieved over the asking price. Part of selling a house is wondering "what if" or "could I have done better?" Let it go. Sell your house & get the EA to deal with the buyer from here on.

EA said there were buyers. He said he could get 30k OR MORE than the asking price. He was very confident when discussing things with us and all of sudden he wasn't. He had buyers and all of a sudden he didn't.

We want to get the best value for our house. I have a mortgage to clear and there won't be much left over. We were promised an extra 30k and then advised to accept half that because nobody is calling after only one week so excuse me for feeling a little duped.

py

fifigogo wrote: »

EA said there were buyers. He said he could get 30k OR MORE than the asking price. He was very confident when discussing things with us and all of sudden he wasn't. He had buyers and all of a sudden he didn't.

We want to get the best value for our house. I have a mortgage to clear and there won't be much left over. We were promised an extra 30k and then advised to accept half that because nobody is calling after only one week so excuse me for feeling a little duped.

You were promised an extra 30k because he wanted the commission regardless of whether he sold it at €x or €x+30k. He's a sales man.. he's selling himself to you and once that's complete his hard work is over given how the market is right now. Take the money or don't take the money but it doesn't appear that the market is willing to give you an extra 30k.

fifigogo

astrofool wrote: »

I'd look at it as the house has been on for a few months, and hasn't really got people jumping at it since then. The EA can only operate on people who bid, and the 30k he suggested is probably an upper end valuation to secure the listing, and only likely to happen if a bidding war ensues.

The fact you did all the groundwork with the one bidder and didn't manage close with her, while he did, is probably what you're paying the estate agent for.

The only question that should matter is "is the offer acceptable", how it arose doesn't matter.

I see what you mean. Thanks for that response.

Claw Hammer

You are being scammed. The bidder is obviously a cute calculating and devious bitch. She and the agent have concocted plot to get the house out of you on the cheap. Tell the agent to get the price he promised or go bugger.

James 007

fifigogo wrote: »

EA said there were buyers. He said he could get 30k OR MORE than the asking price. He was very confident when discussing things with us and all of sudden he wasn't. He had buyers and all of a sudden he didn't.

We want to get the best value for our house. I have a mortgage to clear and there won't be much left over. We were promised an extra 30k and then advised to accept half that because nobody is calling after only one week so excuse me for feeling a little duped.

You need to look at it a different way regarding taking his word for it. Are there any houses in the same area, if so what are they going for. Its only a week, so hold on for another while, see if any viewings take place or are set up. At the end of the day the market will pay for what it is worth, any big pluses with the house, does the estate agent highlight these.

fifigogo

py wrote: »

You were promised an extra 30k because he wanted the commission regardless of whether he sold it at €x or €x+30k. He's a sales man.. he's selling himself to you and once that's complete his hard work is over given how the market is right now. Take the money or don't take the money but it doesn't appear that the market is willing to give you an extra 30k.

Hmm I would have thought that as an EA, the job doesn't stop once you get the client in the door. You don't just sit back and put your feet up. The higher the amount, the higher his commission.

fifigogo

James 007 wrote: »

You need to look at it a different way regarding taking his word for it. Are there any houses in the same area, if so what are they going for. Its only a week, so hold on for another while, see if any viewings take place or are set up. At the end of the day the market will pay for what it is worth, any big pluses with the house, does the estate agent highlight these.

Well the house that he sold a few doors down, he managed to get a sale agreed that was 30k more than the asking price. Our house, according to him, is in better condition. We had same asking price too. Maybe he just got lucky but the house down the road was up for sale for maybe 2 to 3 months before it sold. Yes there's quite a few plusses but he doesn't highlight them in the ad. It was a very generic advert and he took the pictures of the house which were average.

py

fifigogo wrote: »

Hmm I would have thought that as an EA, the job doesn't stop once you get the client in the door. You don't just sit back and put your feet up. The higher the amount, the higher his commission.

Whats his % from a sale? 1%? The difference between €x or €x+30k is potentially €300 for him at a 1% rate. Why wait a few weeks on that when he can get a "Sale Agreed" sign up on your property and the reputation boost for his agency as it sits there waiting on the sold sigh to be hoisted.

fifigogo

py wrote: »

Whats his % from a sale? 1%? The difference between €x or €x+30k is potentially €300 for him at a 1% rate. Why wait a few weeks on that when he can get a "Sale Agreed" sign up on your property and the reputation boost for his agency as it sits there waiting on the sold sigh to be hoisted.

1.25%

Sleeper12

I doubt very much that he actually promised any actual amount as there was no way he would know what he would get.

It does not matter if you put the buyer on to him. The fact is that she was not giving you the extra 15k. If you didn't employ him I don't believe that you would have gotten anything above the original asking price

It's early days yet and even after she puts down a deposit the deal can fall through. Fingers crossed it won't. I honestly can't see why you aren't happy that you are making 9k more because of the EA in less than a week.

You shouldn't be looking at the ea profit of 6k. You should be looking at the 9k profit he has brought to you

aLou991

Funnily enough, same thing happened with me. Still sold the house for a couple of grand over asking but since going sale agreed I've not heard much.

Wasn't originally happy with the asking price but I think if I'd gone for my original asking price I'd not have gotten much interest.

OP, it's up to you. I have sent a PM to you as I'm wondering if it's the same agent I used out of curiosity!

fifigogo

aLou991 wrote: »

Funnily enough, same thing happened with me. Still sold the house for a couple of grand over asking but since going sale agreed I've not heard much.

Wasn't originally happy with the asking price but I think if I'd gone for my original asking price I'd not have gotten much interest.

OP, it's up to you. I have sent a PM to you as I'm wondering if it's the same agent I used out of curiosity!

The EA told me people are calling but they don't want to bid more than the other bidder. They haven't even seen the house. Also another thing that struck me and I just remembered. The EA said to me on Friday just gone that there was a legal issue with the house that he represented thats down the road and he said if it goes back on the market, the lady may bid on that instead and it might be in my best interest to secure her offer. Maybe I'm paranoid but there's something not sitting right with me on this. Fair enough if her offer is the most we get then I'm happy with that bit it was only 3 days and the EA seemed to be caving to the first offer that came in. Yes it is above asking price but not in the region he confidently said he could get. And similar properties in this area are going for conserable amounts higher. It's a well sought after area.

Maybe you can send the pm again. I didn't get it

fifigogo

Sleeper12 wrote: »

I doubt very much that he actually promised any actual amount as there was no way he would know what he would get.

Actually he did. "Having considered recent comparable sales in the general area, It is our opinion that the advised market value of your property is in the region of X - X". I got this is writing from him. The lady bidder has bid below the regional value.

Claw Hammer

fifigogo wrote: »

Sleeper12 wrote: »

I doubt very much that he actually promised any actual amount as there was no way he would know what he would get.

Actually he did. "Having considered recent comparable sales in the general area, It is our opinion that the advised market value of your property is in the region of X - X". I got this is writing from him. The lady bidder has bid below the regional value.

Tell them both to get lost!

Sleeper12

Valuing the property is a long way off "promising" a figure

fifigogo

Sleeper12 wrote: »

Valuing the property is a long way off "promising" a figure

Maybe not in writing but verbally "We can get that price for you" is close enough.

Sleeper12

fifigogo wrote:

Maybe not in writing but verbally "We can get that price for you" is close enough.

"We can get that price for you" is not a promise or anything like it. We can get that price for you, is saying that, that price is achievable. Ea did not promise. He wouldn't leave himself open to being sued for not delivering on the promise.

davo10

All sales are projected based on past performance so if there was a lot of interest in a neighbouring house and it sold for above asking, it's fair to assume that yours would sell for more.

There are a couple of variables in play here. Now that you have a professional involved, the original bidder realises that it will be marketed better and there is a good chance the price would go up. As an experienced buyer, I can assure you that a better, lower price can be gotten when dealing direct with the vendor, EAs are a lot more experienced and play the game a lot better. Your original lady bumped her offer to try and seal the deal once the EA got involved.

From the EA's point of view, there is a solid buyer whom he knows has bid on other properties, he knows she has the finance and probably knows from previous properties what her budget is. He is advising you to sell because the deal will probably close quickly, you get an extra €11k, he gets commission, the lady gets the house.

You could of course refuse the offer and wait for higher bids. You are in charge of this, if you can wait another couple of months you may well achieve the extra €30k as a result of the extra marketing and professional service the EA will offer. Your choice.

Claw Hammer, how on earth could the lady and the EA be in cahoots, do you think they rang each other and said "Hey, I know a way you can pay an extra €16k for a house" , surely the benefit of being in cahoots for the lady would be to pay less than previously offered once the EA got involved. The mind boggles.

Claw Hammer

davo10 wrote: »

Claw Hammer, how on earth could the lady and the EA be in cahoots, do you think they rang each other and said "Hey, I know a way you can pay an extra €16k for a house" , surely the benefit of being in cahoots for the lady would be to pay less than previously offered once the EA got involved. The mind boggles.

The EA knows the true value. Either he has taken a backhander from her to get the house cheap or she is going to sell on the property off the contract and split the profit with the EA. It is a classic scam.

Graham

Claw Hammer wrote: »

The EA knows the true value. Either he has taken a backhander from her to get the house cheap or she is going to sell on the property off the contract and split the profit with the EA. It is a classic scam.

You’re suggesting the EA and purchaser colluded to dive the original price UP?