Sale by tender

[HawkEye244]

A friend of mine's family is wanting to move house and they have put an offer in on a bungalow. SALE BY TENDER. The agent's explanation reads as follows:

SALE BY TENDER. Tender closing date is *********. Please be aware that upon purchasing a Sale by Tender property, you will incur a fee to ********** of 1.95% plus VAT in addition to the agreed purchase price. Full details are contained in our Sale by Tender pack, which will be provided upon request from our office *******

-------------------------------------------------------------------------------

My understanding is that the vendor has passed and the son of the lady whose house it was is dealing with the property. Probate etc.

I don't understand sale by tender so perhaps someone can explain ?

The fee will amount to £7,000 for my friend's family excluding all the other bells and whistles like solicitors fees, stamp duty etc.

To me it seems like a hefty and potentially unrewarding charge and one to be avoided.

Yes I can get an explanation online, such as here : https://www.lovemoney.com/news/2777...e-agents-start-charging-both-seller-and-buyer

but I'm also interested in personal accounts. Thanks

 

[securespark]

Not sure what you mean by personal accounts.

 

[HawkEye244]

i.e. people that have personal experience with it secureparks don't be a thicko mate ffs

 

[Doggit]

It just shows the depths that estate agent will go to secure a property to sell, and they don't give a damn about whom they extort their money from.

According to the article, the estate agent only charges the seller a nominal amount (so why bother at all), and gets their commission from the purchaser, who can't really afford it. Sale by tender isn't a new thing, but charging the purchaser for it is.

Anyone notice how most estate agents drive very expensive cars. And odd how as the price of houses keeps going up, so does the commission they earn.

 

[securespark]

i.e. people that have personal experience with it secureparks don't be a thicko mate ffs

Don't be so rude ffs...

Why on earth didn't you say you wondered if anyone had experience of SBT then?

 

[DaveHerns]

Can you make an offer and say it's inclusive of the agent's fee? Round here agents are typically charging vendors around 1% plus VAT. 1.95% is taking the whotsit.

 

[Doggit]

You can't do that unfortunately, as you're then possibly paying less than the othere bidders might be. 1% is a damn good deal. Normally, you'll be lucky to get 1.5% for sole agency, and about 2.25% for multi agency deals. The tender system works oddly, in that you may have put in a lower offer, but if you're a cash buyer, or not in a chain, then you may get accepted, but that's a different issue to the estate agents being a bunch of see you next tuesdays, and wanting every penny they can get. I wonder if there's a special place in hell reserved for them. Maybe like the film the Purge, there should be one day a year that you could inflict whatever punishment you liked on any estate agent that you caught out in the open.

 

[HERTS P&D]

there should be one day a year that you could inflict whatever punishment you liked on any estate agent that you caught out in the open.

That's not very heavenly!

Andy

 

[rules&rulers]

Is there any negotiation possible with the estate agent ? If your friends really want that property,they will have to pay up what ever the estate agents asks for.sorry to say. This property is a probate sale and the executor wants a maximum return seems rather greedy or the vendor has been given poor advice.Financial
Maybe that property is for sale with other agents,i suppose an internet (post code) searches have been done,is the property reasonably priced ?. Property can be sold with many upfront Financial conditions,its the other Financial conditions that can crop up during conveyancing can be a deal breaker.
Has the property been valued professionally (not by a few estate agents they just offer info on the maximum they THINK ! is achievable and an average value worked out) it would be of interest to see the 3 value estimates . If the selling agent valued this property i would have concerns there.The sale by tender puts a lot of buyers off so remember this when making an offer,the property should be valued to reflect its a sale by tender,not a lot of estate agents know this or dont give a hoot.
Sold 3 properties last year,none through high street estate agents although when they got wind of a property for sale on their patch,they all sent their manager around to try and steal my custom,one was slagging off the other . The words unqualified ,rooks and leaches could be used.
I have great pleasure in telling them to bugger off.

 

[FiremanT]

Either the vendor pays the %age or the buyer does. What matters is that you bid what you are prepared to pay, taking into account all of the associated costs.
If the family can't afford it, then don't bid.

It really is quite simple.

 

[noseall]

Why on earth didn't you say you wondered if anyone had experience of SBT then?

That's what happens when a thicko tries to act clever.

 

[HawkEye244]

It's a friends family (mum and dad) looking to move away from the area they currently live for a few reasons (mostly family). They have had an offer accepted on theirs and need to be out by a certain deadline or else they will lose their buyer. The buyer in their case is renting and has to be out by a certain date to avoid having to extend their tenancy agreement.

The mum was under the impression that the 'sale by tender' method provides some kind of value i.e. a tender pack. It's become clear it's just a shift in responsibility of who pays the agent's fees. There is also about 30-40 k work on the house. It doesn't look to have been touched much since the mid 1980's. A complete refurbishment is required, together with extension out the back to improve the kitchen and lounge areas. It's a massive project to take on for two people in retirement. They already put in the winning bid before I accompanied them for the second viewing, with my mate attending as well. The walls are dry though and the loft has been insulated to current regs.

I was also curious about this method of sale myself. It appears they will either have to like it or lump it, find the money or keeping house hunting. 7k is a lot to find for seemingly fukc all, better spent on a new kitchen/bathroom IMO.

 

[HawkEye244]

Is there any negotiation possible with the estate agent ? If your friends really want that property,they will have to pay up what ever the estate agents asks for.sorry to say. This property is a probate sale and the executor wants a maximum return seems rather greedy or the vendor has been given poor advice.Financial
Maybe that property is for sale with other agents,i suppose an internet (post code) searches have been done,is the property reasonably priced ?. Property can be sold with many upfront Financial conditions,its the other Financial conditions that can crop up during conveyancing can be a deal breaker.
Has the property been valued professionally (not by a few estate agents they just offer info on the maximum they THINK ! is achievable and an average value worked out) it would be of interest to see the 3 value estimates . If the selling agent valued this property i would have concerns there.The sale by tender puts a lot of buyers off so remember this when making an offer,the property should be valued to reflect its a sale by tender,not a lot of estate agents know this or dont give a hoot.
Sold 3 properties last year,none through high street estate agents although when they got wind of a property for sale on their patch,they all sent their manager around to try and steal my custom,unqualified rooks and leaches.
I have great pleasure in telling them to bugger off.

Rufus when you sold yours, did you advertise it online via one of those online agents where you pay a fixed fee to advertise the property online and then do all the viewings yourself ?

 

[HawkEye244]

It just shows the depths that estate agent will go to secure a property to sell, and they don't give a damn about whom they extort their money from.

According to the article, the estate agent only charges the seller a nominal amount (so why bother at all), and gets their commission from the purchaser, who can't really afford it. Sale by tender isn't a new thing, but charging the purchaser for it is.

Anyone notice how most estate agents drive very expensive cars. And odd how as the price of houses keeps going up, so does the commission they earn.

I'm not convinced they make all that much anymore. A letting agent I used to source my tenants a while back said agents who do strictly sales basically make next to nothing after taxes and expenses. The web is also slowly changing the market as well, helping people to avoid agent fees entirely.

I remember a few years back when a fella on The Apprentice had the idea of an online estate agent portal where you just pay a nominal fee to advertise your property to avoid the conventional commission fee structure - well it's happened. Alan Sugar thought it was a terrible idea and wouldn't work, boy was he wrong.

 

[rules&rulers]

Rufus when you sold yours, did you advertise it online via one of those online agents where you pay a fixed fee to advertise the property online and then do all the viewings yourself ?

Hi,i dont involve any agents.
1,set up an internet site, if i was selling 10 downing street i would get a internet site as close to the selling address as possible ie www.10-downing-st.con.
put all the details there,photos,video tour,as much detail as possible.include an email and landline phone number,my solicitors details etc.
2,put up forsale board with the www address,email and landline.private sale only.
3,solicitor will verify the buyer has access to funds. and start the sale process.
4,yes i do the viewings,apart from the viewings i have local area knowledge and can make further comments for example,last sale 1 buyer asked is the local future cross rail station within easy walking distance,apart from saying yes it is,i walked them to the station.Stopped off for a coffee on the return and they offered the asking price.They now live there.

Rufus ?