To not understand why estate agents often seem to be working against the buyer

[witchofzog]

Before I start this is not an estate agent bashing thread. I have had lots of experience with estate agents and without exception they have all been friendly polite and professional.

But what I don't understand is why many of them seem happy to give information away that could compromise the vendors financial position. I have been viewing houses for the past year. Some of the things I have been told are that the vendors are desperate for a sale and would accept a low offer, that a property has been empty for a while due to the vendor moving in with their partner and that they are finding it hard to pay the mortgage and that the vendor originally inherited said property and therefore would probably not be too upset to receive a lower offer.

Obviously I realise the aim is to secure a sale and therefore commission but the commission is coming from the vendors pocket and it just seems a bit odd to me. If I was the vendor I would be pretty peeved if this sort of info was disclosed to viewers. Aibu to think that loyalties should predominantly be with the vendor?

Their loyalties are to making their firm money, which only happens when the property is sold.

No idea.

House buying is weird in this country.

In the US Estate Agents are liscenced and have guidelines. Here it's a free for all of lies and bullshit.

Ours was a nightmare, promised myself I'll never move again.

Sorry thread title should read against the vendor

It sounds better in the US queen

If saying what they say elicits an offer when there wouldn’t have been one, then they are doing their job to a certain extent. An offer which can then be accepted, rejected, or negotiated up. A choice for the vendor to make.

I told the EA to specifically tell buyers that we would take offers.
We had a very bog standard home to sell, think streets of similar. Needed buyers to think they were getting a bargain or we would never have shifted it!

Do you mean "vendor" rather than "buyer" in your title?

I think they just want the viewings/offers in in the first instance. So "sell" the property in the hopes of getting a bite. That way, vendor thinks they are doing their job, marketing it well, and potential buyer might up the offer if it's turned down because they have become "emotionally invested"!

I think if you have instructed the estate agents to inform people you are open to offers etc then that is a good thing. But some of the emotive language I have seen ie desperate for a sale, struggling with mortgage etc just seems a bit off. It didn't influence my decision as I didn't want to buy these particular properties after viewing them but it could have resulted in ruthless people gazundering later in the process if they knew the vendor was in a weaker position

The commission levels mean that, for them, a lower sale price doesn't equate to a significant difference to them as commission percentage is low and sale price high.

It's not unusual to negotiate a 1.2% commission. If the sale price is 250k, they'd earn £3000. Selling at £200k would get £2400 and that's for the company. Say they get 20% of that, it's either £600 or £480 in their pocket.

Far better to sell asap and get the £480 rather than hold out for the £600 indefinitely.

They press the vendor too. They tried desperately to get us to accept a low offer but when I stated very clearly I either got a price that enabled a move I wanted or I didn't sell I got fewer viewings but more serious ones.

We have experienced an awful answer, we have been looking for a property to buy as cash buyers, due to a series of events before Christmas our budget increased by quite a bit. We saw a house we like phoned the Monday before Christmas, no can't do a viewing can't arrange anything till after Christmas. We supplied contact numbers and email addresses. Today we chased up he can offer us at night, the property has 1.1 acres and this is an important feature to us so in the dark is no good. He can offer us 30 mins at 11.30am on Saturday, well I am working and actually we are looking to spend a shit load of money we want more than 30 mins to look. This property has been on the market since July and properties in that bracket are not shifting here. We are serious and need I say it again have CASH.

That's really rubbish Lone The vendors could actually miss out on a cash buyer because of the agents they are paying. It's crazy

We had a similar experience Lonecat with a property that people couldn't get a mortgage on. We had cash and were looking for a weekender. The property had been prone to flooding in the past, thus the no mortgage thing, but flood barriers built in the area since. They were untested however. We were willing to take the chance because it was a holiday home, not a permanent residence for us. But the agents faffed and faffed about waiting for people (who, fair enough had put their offer in first) to try and raise the capital, that we gave up and looked elsewhere. This was last Easter and as far as I know the place is still for sale. I honestly felt like putting a note through the door telling the sellers that we were willing to buy but the agents weren't taking any notice!

@witchofzog there is a whole section in Freakonomics (excellent book) that explains the whys and wherefores of this. Am on phone so hard to link but is probably googleable.