Incompetent Agent

[Lina11]

Hello all,
We are first time buyers. Two weeks ago started viewing properties and instantly fell in love with the first one! It was end of terrace two bedroom house in need of refurbishment itself and also some garden cleaning. Asking price was 280.000, but have been on the market for two weeks, so we offered 271500, was biggest offer at that time. I told agent that we are willing to negotiate and asked to let me know if someone offered more, so we can increase ours. Called him 2 days later- no news, 5 days- agent not at his desk, did not call me back, after 7 days getting hold of him and asked if there are any news, he said that our offer rejected and he didn't call to us because other people offered more than 27500, which was our limit. Thing is, that I've never said what our budget is. And as an estate agent, he should be interested to sell house for more money. Asked to pass my full asking price offer to vendor, he said he can't, because process started. Day later I found out that agent has to pass all offers to the vendor even if one have been accepted. I spoke with branch manager and he advised me to send written offer to them, sent offer of 282000. Two days later no response. Tired to get hold of those useless people. Thinking to contact vendor directly. But vendor lives elsewhere, the only option is to try and speak to neighbours if they know who is selling the house. What would you advise? Thinking of getting chocolate box to neighbor with offer letter to ask to send or to call vendor.. Dont know what to do, can't sleep properly, can't concentrate at work, only thoughts about that house :(

[Lina11]

Forget to mention, that property is still advertised on agents website and on other sites for some reason..

[MrMenAndLittleMiss]

It may be that the vendor has accepted the offer of £275k and therefore doesn't want to consider further offers. Although I agree that the estate agent's communications have been quite poor.

[Dailystuck71]

Sorry, am I being daft. You've said your budget was £275 but you've now offered £282? Why didn't you just make a strong offer in the first place?

May be they've accepted a cash offer which is more appealing and less risky to the seller than you being FTB?

[Lina11]

Agent thought, that our budget is 275000, he probably checked his system instead of calling me. House is need of refurbishment, so we wanted to pay as low as possible, hence first low offer. I said, I am willing to negotiate, left some space for that. He only called me to say, that my offer rejected and it is too late to increase..

[Dailystuck71]

Should have come in stronger. The seller may be didn't want to negotiate and as I say the buyer may have been cash so a safer bet.

You lost out by offering too little.

[badgercat]

I'd be careful here - all you may end up doing is pushing the price up for the people who have already started the process, just because you can pay more doesn't mean they can't and I'd bet they get first refusal anyway.
I'd leave it with your firm interest being logged should the other buyer drop out and look elsewhere

[StarTravels]

I would write the estate agent a letter reiterating your offer and CC the address of the property on that letter so they know you're sending it to the vendors too, then I would post a copy with a note through the door.

Even if they are not home someone is probably picking up mail and at least then you will know you've tried everything. If the EA hadn't passed on your offer they will also find out.

[namechangedtoday15]

You don't know circumstances. Maybe they thought you were playing games. Maybe vendor said we'll accept first person to offer £275,000. What you're suggesting noe (that an offer has been accepted) is gazumping. Don't do that.

[Lina11]

thank you all for replies. Agree, that lost because offered too little, just didn't expect agent to be so careless. I am registered with few other agencies, and agents are calling me every two days to inform about new properties, asking if I want to view... Was thinking about a note through the door, but nobody lives there, agent can pick that at the end, not sure if I want him to know that I am trying to contact vendor.. That's why I am thinking to give offer letter to neighbor to send it, if they know where vendor lives.
probably will mention my offer and doubts, that it hasn't been passed, will say that I am waiting if something goes wrong with the sale.
Have few friends who have been on different sides of gazumping, one after being gazumped had to drop out, at the end bought flat instead of house. The other had to rise price above her limit 10k, at the end borrowing that money from sister. Third one paid 4k to the agent to secure the sale, but nearly failed, cause someone post note through the door offering 12k more, but agent picked that up and rushed him to finish sale. That is market, no rules, nobody is protected.
It is just strange, agent told me, that process already started a week ago, but property still advertised everywhere, why they are not taking out?

[Dailystuck71]

You don't know that the agent has been careless though. A seller can accept an offer from anyone they wish. An agent can't force someone to sell.

You tried to play the game and lost.

[Bluntness100]

He should have told you it was rejected, absolutely. That is really bad he didn't. but it sounds like someone very quickly after you put in a better offer and was accepted, the seller may not want to mess about and wish to stay with that accepted offer, many do. If the agent thought the buyer would accept he'd prob put it forward as their commission is based on a percentage of the sale price.

I'd agree with the others. You offered too low and lost out. I'm sorry. Sounds like it sold fast.

[Sunshineboo]

Hi one thing that is important to mention is that the agent works for the seller not the buyer.

When we sold our house we had someone who started low, increased his offer then late in the day reduced it to below his original one. We pulled out and put it back on the market.

I instructed our agent that I would not be
Dealing with someone like that again. We had some interest and then a couple came in with a really reasonable offer - and were clearly committed to the sale. We went with them despite one person raising their offer slightly higher.

Buying and selling is a difficult process emotionally - if you want to try to contact the vendor then do so, but try not to put all your hopes in it

Good luck

[MovingOnUpMovingOnOut]

Is the property only on with one agent? If not, offer via another??

There was a bit of a scandal earlier in the year with a well known (but not the biggest) London agent not passing on offers.

They must pass on all offers, even if made after the process has started.

[namechangedtoday15]

That's not correct (about passing on all offers), there is wording in the estate agents code (or whatever it is) that says they must pass on all offers unless they've been specifically instructed by vendors not to (or words to that effect). Only know that as we instructed agents not to pass on offers below x when we last sold.

[MovingOnUpMovingOnOut]

That's funny, everything I have read says that legally the offer has to be passed on.

This is from gov.uk op and shows offers must be passed on even after an offer has been accepted elsewhere: www.gov.uk/buy-sell-your-home/estate-agents

[namechangedtoday15]

Paragraph 9.1 of the Code of Practice for Residential Estate Agents (on the Property Ombudsman website)

"By law you must tell sellers as soon as it is reasonably possible about all offers that you receive at any time until contracts have been exchanged unless the offer is an amount or type which the seller has specifically instructed you in writing not to pass on "

[Lina11]

When I spoke to branch manager, he agreed that all offers have to be passed. They are small company, mainly working on lettings, have only one sales negotiator, the one who didn't call me, even after saying, that I am going increase; the one who knew nothing about house when we viewed it. Property on a market has been three weeks and I thing agent just put that through saying look, no one offered more.. It's sad...

[Lina11]

Is it normal to ask agent to show that instruction from seller? Of course if there is one

[namechangedtoday15]

I think you have to look at the bigger picture - the key (unfortunately in my view) is that the whole process in England is not transparent and largely depends on the estate agent and your relationship with them (letting you know about properties first, getting you to view, "selling" you as buyers to the vendors, smoothing the process. So, you can either fight for this property (which you seem to want to do) albeit that its unlikely to get you anyway & recognise that this agent is going to give you a wide berth going forwards, or you let it go and make a strong offer on properties you like in the future.

[Dailystuck71]

Lina no. What happens between an agent and a seller is no business of yours. Seller can accept what they like.

[Lina11]

Spoke with agent today, he said that vendors friends buying house, and of course I should have offer stronger.. Don't know now if there is point going to see neighbor.. :(

[namechangedtoday15]

You really have to let it go. The vendors can sell to anyone they like, you don't have a 'right' to be considered. What exactly do you think a neighbour would do?

[Lina11]

Well, if agent lied, she would probably know.. Yeah, I feel stupid now :(