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AIBU?

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Do I pay EA fees if I pull out of house sale?

57 replies

FatG · 26/09/2024 11:21

I’m selling a jointly owned house and plan to go with an estate agent to photograph and market the property and to conduct viewings. Have never used an EA to sell before so don’t know about their fees and if they all usually work in the same way. If they find a willing buyer and get an offer (maybe a few), do we have to accept it and pay the fee? I appreciate that the agents will have put in some hard work to advertise it and liaise with potential buyers to get to that point. I understand that the sale can be stopped at any point before exchange and I would not even consider pulling out at all after buyers have spent any money on surveys etc. Are EA fees payable only on completion?
YABU-EA fees are payable even if you pull out of the sale.
YANBU-It’s your house and if you don’t like the buyers they find you shouldn’t have to sell it or pay the EA fees.

OP posts:
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EdgeOfSixty · 26/09/2024 17:45

Check the contract length. Some big chains have contracts of 20 weeks so you would be stuck with them even if they are useless.
I would be looking for a 6 week contract to give flexibility.

schloss · 26/09/2024 16:39

OnePeachCrow · 26/09/2024 15:34

If you put the property on with an estate agent and they get you an offer for the asking price which you reject because you want to buy the property, then yoiu will be liable for their whole fee.

Edited

Not 100% correct - it will depend on the contract agreed.

@FatG EA fees and contract clauses are to a certain extent up for discussion. I am sure EA will have seen similar situations before with couples splitting up. Taking the photos and marketing properties for no fees is the cost of doing business for an EA, the other side is a house can be sold before any marketing or photos are taken but the EA still get their full fees, so quid pro quo. So I wouldn't be too worried about wasting their time.

As others have said, if the property gets an offer for the higher price then decisions can be made, if someone else is willing to pay a higher price then it must follow if you buy out your partner it should be at the same price. A higher price achieved may lead to a decision the house is sold - fresh start for all maybe?

insomniacalways · 26/09/2024 15:57

We got three valuations when I bought my ex out. If you sell to someone else you lose 1% in fees to the estate agent, solicitors fees, and stamp duty for you both to buy somewhere else not to mention two chains. It is trickier when you aren't married as there isn't a proper legal framework for negotiating as I found out with my ex-partner. We got three quotes from estate agents - be open about the reason for the quotes, There was 100K difference we split the difference. Once we had an agreement in place a conveyancing solicitor did the paperwork for about 1K to transfer the property and mortgage to my name only.

WiserOlderElf · 26/09/2024 15:35

OnePeachCrow · 26/09/2024 15:34

If you put the property on with an estate agent and they get you an offer for the asking price which you reject because you want to buy the property, then yoiu will be liable for their whole fee.

Edited

It will entirely depend on what is in the contract with the estate agent.

OnePeachCrow · 26/09/2024 15:34

If you put the property on with an estate agent and they get you an offer for the asking price which you reject because you want to buy the property, then yoiu will be liable for their whole fee.

FinallyHere · 26/09/2024 14:50

just not sure when I’m liable for fees.

You will have a contract with the estate agent. The terms and conditions will be set out in that. I encourage you to read terms and conditions before signing.

If there is anything you do not understand, the thing to do is to ask the agent direct.

People on MN can share their experience which might differ from your situation in relevant points.

Generally, do not enter into agreements without understanding the terms and conditions. In house buying as in life.

Staunchlystarling · 26/09/2024 14:41

Op you just need to play fair. Get 3 valuations. Pick the middle and prepare to sell. If she wants higher, put it on for that price, if no one visits she’s wrong and the price will need to drop. If it sells, then you need to prepare to move.

RoachFish · 26/09/2024 14:28

FatG · 26/09/2024 14:19

Does it matter that I’m the man? She is the one overvaluing to get more out of me. She is the major breadwinner and I need somewhere for the kids because she’ll only have them every other weekend.
I can afford to buy her out.
She wants too much.
I have paid a Rics surveyor to get a figure, which she also disputed, but sold prices around here seem to have dropped since then so I think it is worth even less than that now.
I agree using EAs and teasing buyers to solve this is awful but I can’t see any other way. We both want to avoid going to court.

Maybe try and show her that the prices have gone down and propose something slightly above what it would be now if you think she'd go with that. Is there any negotiating taking place or is she just knocking every suggestion down without even trying to find a solution?

Thistooshallpass24 · 26/09/2024 14:28

@FatG but you don't need to drag other people in to your family drama.
Seek proper legal advice

WiserOlderElf · 26/09/2024 14:26

FatG · 26/09/2024 14:19

Does it matter that I’m the man? She is the one overvaluing to get more out of me. She is the major breadwinner and I need somewhere for the kids because she’ll only have them every other weekend.
I can afford to buy her out.
She wants too much.
I have paid a Rics surveyor to get a figure, which she also disputed, but sold prices around here seem to have dropped since then so I think it is worth even less than that now.
I agree using EAs and teasing buyers to solve this is awful but I can’t see any other way. We both want to avoid going to court.

I guess the other (and fairest?) way is to sell the house and split the money. Which is what will have to happen if you can’t agree.

Mrsttcno1 · 26/09/2024 14:25

FatG · 26/09/2024 11:35

Would this be the full fee though? Because it is several thousands, just for a few pics, calls and showing some people around.

It’s a withdrawal fee you would pay, that’s different to the price on completion.

Thistooshallpass24 · 26/09/2024 14:20

Mildura · 26/09/2024 14:06

Estate agents don't perform valuations, unless they're also qualified as a surveyor.

I was being facetious, because you thought you were being clever.
You didn't actually have to @ roach
Edited because I put phone down to answer the door, and it it predicted bringing not being and I didn't notice

FatG · 26/09/2024 14:19

Does it matter that I’m the man? She is the one overvaluing to get more out of me. She is the major breadwinner and I need somewhere for the kids because she’ll only have them every other weekend.
I can afford to buy her out.
She wants too much.
I have paid a Rics surveyor to get a figure, which she also disputed, but sold prices around here seem to have dropped since then so I think it is worth even less than that now.
I agree using EAs and teasing buyers to solve this is awful but I can’t see any other way. We both want to avoid going to court.

OP posts:
RoachFish · 26/09/2024 14:12

Mildura · 26/09/2024 14:06

Estate agents don't perform valuations, unless they're also qualified as a surveyor.

OK. I don't know what the correct word to use is then. They come in and tell you what they think the property is worth to get an estimated selling price.

Mildura · 26/09/2024 14:06

RoachFish · 26/09/2024 13:58

Their valuation came with a clause saying that basically their valuation is not worth the paper it's written on as it's only a guide. I don't think I could have reported them, although I would have loved to.

Estate agents don't perform valuations, unless they're also qualified as a surveyor.

SprigatitoYouAndIKnow · 26/09/2024 14:04

I have never defended an estate agent before, but it is not fair for you to get them to do all that work for no fee, just because the two of you can't agree on a valuation. Pay for a proper survey, even if it is all out of your pocket. If your ex is over valuing as much as you think, it will still save you money in the long run. If he isn't then you will receive a fair amount in any sale if you can't afford to buy him out.

RoachFish · 26/09/2024 14:02

Thistooshallpass24 · 26/09/2024 13:59

@RoachFish that's appalling x

I know. I emailed the estate agent in question and cc'd the owner of the agency telling them that they are the worse kind of cowboys and what they are doing is enabling financial abuse plus a lot of other stuff.

Thistooshallpass24 · 26/09/2024 13:59

@RoachFish that's appalling x

RoachFish · 26/09/2024 13:58

Thistooshallpass24 · 26/09/2024 13:45

At that much of a difference it would have been disregarded anyway and another valuation done and put in place.
The estate agents should have been reported to a higher authority.

Their valuation came with a clause saying that basically their valuation is not worth the paper it's written on as it's only a guide. I don't think I could have reported them, although I would have loved to.

Thistooshallpass24 · 26/09/2024 13:55

@Mildura tell the person I quoted, I bought my house with out estate agents.

Ohnobackagain · 26/09/2024 13:55

@FatG when I bought out my partner I had three Estate Agents value the house and also looked up what similar houses nearby had sold for. I did not put the house on the market - so I paid the Estate Agents for the valuations. One did it for free but I was upfront. This happens all the time. Don’t put it up for sale unless you intend selling it. At the time it cost £100 for each valuation and I was happy to pay. They put it in writing. Edited to add cost.

Mildura · 26/09/2024 13:53

Thistooshallpass24 · 26/09/2024 13:45

At that much of a difference it would have been disregarded anyway and another valuation done and put in place.
The estate agents should have been reported to a higher authority.

Estate agents don't carry out valuations though, they provide marketing advice. If you want a valuation you need to go to a surveyor.

Staunchlystarling · 26/09/2024 13:45

WiserOlderElf · 26/09/2024 13:39

No, she said she can afford to buy him out. She thinks the amount her ex is willing to sell for is too high.

Ah yes you’re right, my bad, she can afford it if it’s valued less than he thinks a lot less.

Thistooshallpass24 · 26/09/2024 13:45

RoachFish · 26/09/2024 13:24

That only works though if the valuations are fairly similar and they don't seem to be in this case. My exh got an estate agent to value our property at £225K under the actual value so even if I had got two valuations at the actual value the average would have been way lower that it should have been. I was told in situations like that you need a surveyor to do the valuation as they are obligated by law to give a fair valuation.

At that much of a difference it would have been disregarded anyway and another valuation done and put in place.
The estate agents should have been reported to a higher authority.