Dealing with estate agents and making an offer

[phatboy]

Hi, looking for a little bit of advice from people not emotionally attached to my situation.

I have got a buyer for my house, and have found somewhere we want to move to.

The place has been on the market for 2 months or a bit longer, and had a price drop before we became interested. Now that we are in a position to offer the agent has said that 'next week someone else will make an offer of £XXX once they have shown their son the property'.

Part of me smells bullsh*t here and wonders if they agent is just trying to boost their commission.

We really like the place, and could afford to match this other offer that may happen, but we will not as the property isn't worth that to us.

We can go up a bit from our initial bid, we know better than to offer our best from the start.

I'm stuck as to whether to call the agents bluff and say my offer is the best I can do, or offer a little more to show willing.

Any tips?

 

[longdogs]

As you say, Estate agents are full of bullsh*t. They all come up with these little stories that are completely untrue. What's worse is they think that the general public are too thick to see through it. How can they possibly know what someone will offer next week (that's if the son likes it of course).

Is the property listed under another agent? If so, go through them. (look on rightmove for different agents).

If not, make the offer, they will have to pass the information to the seller. If you don't hear anything, go behind their backs, contact the seller direct and tell them what your offer is. Agents don't like swapping details these days because of a 'conflict of interest' but it's actually to protect their little schemes. Visit them if you have to.

OR, you can just say fair enough, we are not interested in paying any more so we will look elsewhere, thank you for your time. See what happens.

Unless you are willing to be scammed by these sharks, always be prepared to walk away.

 

[longdogs]

As an addition: When we were looking a few months ago, we told the agent that someone definitely wanted our house and would make the offer Monday morning therefore we would offer the full asking price for their sale. The offer was made on our house but when we called the agent, they had accepted a lower offer that morning. Agents cannot base their sales on what might happen, they need hard offers.

If it was me personally, I would call their bluff but do it in person so that you can watch them squirm.

 

[EFLImpudence]

The estate agent is working for the vendor, don't forget.
He should tell the vendor your offer now.

If they don't accept because of next week's promise, you can always up your offer then if you want.

 

[EFLImpudence]

Nothing is settled until you exchange contracts (if it's the same as England)

Anyone can change their mind until then.

 

[jagillham]

How much different we talking in price here?

Can't help feel from the sellers point of view the old 'bird in the hand' applies. Why stall an offer today and risk losing it for the sake of one that might not come tomorrow.

Also from the agents points of view I cannot see their gain. Assuming 1.5% commission, average UK house price of £200k (according to Halifax). That's £3k commission. Say they squeeze another £10k from you - why risk £3k commission for the off chance of getting another £150!

I suspect chances are if this other offer did materialise they'd be straight back on the phone to you to try and get a bidding war going.

Could you call their bluff a little, and make an offer subject to it being removed from the market if accepted?

 

[joe-90]

By law the agent must pass on the offer, no matter how ridiculous it may be. It's up to the vendor if they accept or wait. The odds are that the agent is telling the truth.

 

[HawkEye244]

I wouldn't increase the offer until/if they've made a better one, make him work for it.

 

[Bosswhite]

I notice that the original poster may live in Jersey, I seem to remember years ago there was a two tier property purchase system in operation,
is that still in force.?
House prices for locals are at one price, but for outsiders considerably higher, maybe this is what the Estate Agents are hoping for.
I would put an offer in and hope for the best, one can always "up" the offer.

 

[phatboy]

Thanks all,

It's a single agency property. I am working on getting the sellers details (The property is vacant) and will hopefully have them very soon.

It does work roughly the same here as mainland UK - anyone can pull out at any moment until exchange of contracts (Although nobody ever signs, it's dealt with through the Royal Court!).

The difference is less than 3% between my definite offer and the 'maybe next week' offer.

Also worth adding the same agent is acting for me in the sale of my property. I know this should have no effect as it would be anti-competitive, but if I was the successful buyer, they would get commission from me as well which is not the case with the 'maybe next week' offer.

If my offer was accepted, I would absolutely expect the property to go 'Sold subject to contract', and I would do the same with my own.

Bosswhite - it isn't really a 2 tier system. There are a small number of properties that can be occupied by anybody, but the majority are only by people who are 'local' or considered local by being here 10 years or over. This property requires you to be 'local'.

Thanks again everyone for the input, I am going to stick to my guns and if this other offer materialises I will go to my best (which is lower than the other offer), and leave it at that.

 

[EFLImpudence]

If my offer was accepted, I would absolutely expect the property to go 'Sold subject to contract', and I would do the same with my own.

You may, and decent people may stick to that but it isn't binding.

If someone came along and offered you a million (assuming it is a lot less than that), you would be tempted, wouldn't you?

So might the other vendors?

 

[phatboy]

If my offer was accepted, I would absolutely expect the property to go 'Sold subject to contract', and I would do the same with my own.

You may, and decent people may stick to that but it isn't binding.

If someone came along and offered you a million (assuming it is a lot less than that), you would be tempted, wouldn't you?

So might the other vendors?

I thought usually once you accept an offer you stop accepting viewings, so the chances of someone making an offer is pretty low. Unless they have previously viewed of course.

If someone made me an offer massively higher than I had already accepted I would think it must be a con!

 

[EFLImpudence]

Why do they leave the estate agent's board up but mark it sold or under offer?

 

[longdogs]

Just advertising. I have noticed that some agents on Rightmove do not bother saying that a property is under offer or even sold due to contract because it keeps people ringing up. Then they can say that it's been sold but we do have some others and can we put you on our mailing list etc.

 

[conny]

I was under the impression if an offer was accepted then it had to run its course unless one side pulled out for a 'valid' reason. This meant the seller could not pull out for a better offer as it could be viewed as a gazump which is illegal.