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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To think things like this give estate agents bad name

50 replies

MarmiteMania · 15/05/2014 20:22

After months looking dh and I found house of our dreams. Another family had made low offer which was rejected. We got into a Dutch auction situation with them so we were about to leave it when the agent informed us that the vendor (who lives abroad) would be holding a sealed bid and the higher offer would 'win' the house.

We one the bid. Spent a small fortune on survey, searches and solicitors, ready to exchange, only to be told that the vendor would be exchanging with the other party as they had considerably upped their offer.

Aibu to think that any reputable agent would simply have said to the other party after the sealed bid "The house is now under offer, we'll contact you if it falls through"? What sticks is he let us spend all that money without telling us we weren't getting the house. We only heard from our solicitor at the last moment. Thank you for letting me have this rant.

OP posts:
Original poster
MarmiteMania · 15/05/2014 20:23

Sorry 'won' the bid not 'one'!!

OP posts:
expatinscotland · 15/05/2014 20:23

The entire system is a joke.

Original poster
MarmiteMania · 15/05/2014 20:25

Yes expatinscotland, there is definitely something wrong somewhere with the system.

OP posts:
RubyGoat · 15/05/2014 20:26

Do you have anything in writing from the agent about the sealed bids, can you ask the vendor/agent for the wasted fees back?

Mintyy · 15/05/2014 20:30

But the agent doesn't make the final decision!

The vendor does.

This other sale couldn't have gone through unless the vendor wanted it.

Original poster
MarmiteMania · 15/05/2014 21:25

Yes I have a very formal letter from the agent with regards to the sealed bid, but no law to say we are entitled to any money back. And yes the agent just hides behind the vendor. Dh just taken it in his stride but I'm infuriated, don't want to tar all agents with the same brush but just easy to see why so many people are cynical about them.

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BerniesBurneze · 15/05/2014 21:28

Yabu - it's awful but the EAs are obliged to tell their clients of a new offer.

Their clients on the other hand deserve every minor ailment going Angry

Presumably with this greatly increased offer they'll pay for your losses???!

Lottapianos · 15/05/2014 21:33

I would be furious and utterly gutted too. The whole house selling business seems to bring out the absolute worst in some people. Tons of sympathy. I hope something even better comes your way very soon

Bowlersarm · 15/05/2014 21:40

The agent can't say to the other interested party that the property is off the market and that is that unless the vendor tells them to say that. And any offer put forward has to be submitted to the vendors.

It's the vendors who sold to the other buyers, not the agents.

bberry · 15/05/2014 21:40

It's the vendor who decides who they exchange with, not the agent.... And the agent is legally bound to put forward ALL offers..... They can't just decide what information they do or don't want to pass on.

Do you seriously think the agent wants to make these bad news calls? Even if the offer was thousands more they only make a v small percentage commission so it's more hassle than it's worth.

On another note, their solicitor illegally bound to tell your solicitor if they issue another contract elsewhere.... Unless they hadn't done that yet of course!

RabbitSaysWoof · 15/05/2014 21:48

YANBU to be very pissed off. The vendor here has been a cock.
YAB a bit U to blame the agent, I bet they were gutted that the vendor chose to do this, they have to pass on offers they are not allowed to hold back even if they think the offer was a stupid one and they knew the vendor would turn it down they have to put it forward.
As the agent only gets paid on completion and you were about to exchange I'm sure they are pissed right off to be starting the process from the very start again.

RabbitSaysWoof · 15/05/2014 21:50

Sorry I just re read, they were running 2 sales all along?

NoMontagues · 15/05/2014 21:55

As others have said, it was the vendors' call, not the EA's. The vendor is the EA's client and they (the EA) are bound by their obligations to the client. The get their fee from the vendor. The vendor in this case has questionable integrity but unfortunately you get that a lot. People are greedy.

Neverendingnappies · 16/05/2014 06:52

Unfortunately it is not the agents call. The system is utterly screwed. I honestly do not understand how it hasn't been reformed.

buyers need certainty and the only way to offer that is to make offers binding. It is how it is done in Oz. Most sales are done on a 30 day contract though can be as long as you like and once an offer is accepted it is legally binding on both parties. deposits are held in trust by agents as surety. You break the contract you lose the deposit (usually 5%).

buying a house in the UK was the most stressful thing I have ever done because of the lack of certainty.

123Jump · 16/05/2014 07:02

DH is in property, and there is an estate agency in our city that he says are completely rubbish.
He knows of a situation where they allowed a lower bid than someone else had offered to be accepted by the vendor-didn't tell them about the higher bid-as it was from a friend of theirs!!
Outrageous.
However, there are loads of good people in property, and loads of crap vendors too.
It probably evens up in the end.
Very frustrating for you though.

LBDD · 16/05/2014 07:07

You have to remember that the agents are never actually representing the buyer, they work for the vendor only and their job is actually to get the best price for their vendor. As they don't earn a penny until a sale completes it would not be in their favour to mess anyone around, it is the vendor and them alone who can make these decisions so no point blaming the agents. I'm not one by the way.

43percentburnt · 16/05/2014 07:10

You are right to be annoyed, but it is not the estate agents decision! If they had not put the other families offer forward to the owner then they have broken the law. If you were the owner and a second buyer put forward an extra 30k would you want to know about it?

The estate agent gets a bad name because the owner gets them to give bad news and also because in the uk people tend to blame the agent not the owner.

It's often better when you meet the owner face to face on a viewing. Give a name a face.
Were you given a chance by the owner to up your offer?

You are right to be pissed off, but you should be pissed off with the owner.

starfishmummy · 16/05/2014 07:26

The estate agent is working for the vendor and has no obligations to the buyer. They are just salesmen who have their eye on a large commission

TiredFeet · 16/05/2014 07:34

Yanbu to be annoyed, although as others said, its with the owner really as much as the e.a.
And also with the other buyers who could have walked away

Its the system that needs reform I think though, rather than relying on people having any integrity

I found out on the village grapevine recently that the e.a. Was allowing viewings on the property after our offer was accepted and had been 'taken off the market'. The whole system stinks. Our boy was desperately ill in hospital for 2 weeks during the purchasing process (it didn't delay things though). Thankfully he is fine now and we did get the house but I am so angry to think of them sneaking around behind our backs at that time in our lives! (They knew)

(And I am a property lawyer (although I rarely do much residential) so I made sure we always kept things moving at our end and didn't hold anything up)

Original poster
MarmiteMania · 16/05/2014 09:13

Thanks Lottapianos. Rabbit the agent wasn't gutted in the slightest, did not even have the courtesy to phone us we only found out when their solicitor issued another contract and was legally required to tell us. The house completed the following week for 500k over asking price so agent wasn't bothered.

I understand that the agent has to put all offers forward but what gets me is that he phoned dh EVERY MORNING for updates on survey etc (bear in mind after sealed bid) when he was in fact selling to the other party. TiredFeet hope your son is well now.

OP posts:
HappyAgainOneDay · 16/05/2014 09:26

Is the Op allowed to give the agent's name so we can avoid him?

mynameisnotmichaelcaine · 16/05/2014 09:38

Oh honey. We are going through a similar thing this week, except it is our buyer doing the dirty on us. Totally soul-destroying. I know worse things happen at sea, but just when you're about to exchange, you think you are safe. Keep your chin up.

HighwayDragon · 16/05/2014 09:44

It's called being gazumped, it sucks. You'll find something else though

CrapBag · 16/05/2014 10:42

500k over the asking price????? Is that the right figure?

YANBU to be annoyed. I know they have to tell the vendor about other offers but this seems very dodgy when you have had so much done towards the sale already? When exactly was this other bid made and accepted? Surely the vendors solicitor knew there were apparently 2 people buying this house?

Original poster
MarmiteMania · 16/05/2014 11:02

Yes that is the right figure. After the other family list the 'sealed bid' , they were apparently driving the agent mad and got him to ask the vendor to literally name his price. They had survey etc and we only found out when our contract was rescinded and they exchanged.

I know 500k is a lot of money but there's something wrong with things when a vendor is allowed to string two parties along who are spending money and hedge his bets. For what it's worth this vendor was not short of a bob or two he has houses all over the world. Philanthropic. Just not morally inclined closer to home.

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