Is the estate agent screwing my mother?

[dodgyestateagent]

DM, who is elderly, has just had to put her family home up for sale, she is moving to assisted living. She is 78 and has lived in this house for over 50 years - my father's recent passing has meant she can no longer cope with the house by herself. She has no idea about market value, valuations, selling a house, so we have been dealing with the estate agent ourselves.

The house went up for sale on Friday, and we were told it was inundated with interest. So much so that the estate agent held an 'open viewing' for viewings on Saturday, for one hour. We were told that over 200 people had come to visit the house!

We've just been told the highest offer, and it's below what would be expected for the area (we are South East, detached, 3 bedroom, large south facing garden). Especially since he said they'd been inundated with viewings and interest. When we queried the estate agent on how he got the offers, he told us that due to having so much interest, he was doing an anonymous 'best and final offer'. The highest offer (and best position) we've been given is supposedly the highest of all of the 'best and final'... However, when we enquired whether or not he'd gone back to any of the other interested parties to see if they'd like to improve on it, he said he hadn't to ensure 'fairness for everyone involved.' It doesn't seem like he has tried to get the best price for my DM. Myself and DH have purchased a couple of properties, and each and every time we've been told about other 'higher offers' and been asked if we'd like to improve on our offer... It just seems a strange way of doing things and I am worried the estate agent has got some sort of back hander going on... AIBU?

Selling it to a friend. Been there and got the teeshirt.

Can he be reported?

Haven't RTFT, but how many different estate agents did you get to value the property?

My ex was an estate agent. One with scruples. He didn't last long in that career because he couldn't tolerate what some other agents got up to. One thing he learned very early on was that if a house sells that quickly then it has been deliberately underpriced, and the chances are that the estate agent has a property developer or landlord mate with cash in their pocket, all ready and waiting for just such an opportunity.

I'd tell the agent to take it off the market and tell them that you know what they told your friend when she rang up to enquire about the house.

REALLY! Cf has designs on your mams property. My friend put an offer on a house and it was declined for not being high enough. (House was a repossession) so bank owned. Estate agent bought it for less than my friend offered. He is after the house you mark my words

Waiting with baited breath....this is so like my friend's experience!

I am a compliance director in the commercial property sector, and a member of the RICS. Only read the start and bits of thread, but enough to concern me.
Please private message me if you want a chat.

That’s awful! Go with a different estate agent!

I got three valuations for my flat in London. One recommended 20k less than the price we paid 5 years before and 70k less than other estate agents with a lease renewal being completed. When we said the price was paid he quickly said we should sell it for that. We sold it for 50k more than he had said without renewing the lease. He clearly had a mate he wanted to turn it over to.

Luckily I was aware of unscrupulous estate agents as a friend had literally just successfully sued an estate agent who undervalued their property and only out forward the offer from their mate the property developer. Fortunately they were able to get back the difference in what it should have been valued.

I had a similar experience where our estate agent pushed a particular buyer at us for below asking price, persuaded me that there was no prospect of a higher offer, that they’d gone back to all the other people who had offered and checked they wouldn’t up their offer, we’d be foolish not to take the offer, and so on. We slightly reluctantly agreed to accept the below asking price offer.

The next day I was at a BBQ and got chatting to one of their friends who was trying to buy a house who was lamenting how she had seen a place she’d fallen in love with but the estate agent put her off making an asking price offer because ‘she couldn’t compete with other offers already on the table’. As she was waxing lyrical about the ‘house that got away’ it dawned on me that she was talking about MY HOUSE!

We both confronted the agent together and asked them what they were playing at, we accepted her asking price offer and had a really smooth sale!

@dodgyestateagent

He owns the estate agents, so unfortunately there is no one higher to go to!

Go to a different estate agent.

Sounds like he is either underselling to a relative or friend or just not that bothered and doesn't really care.

You don't have to accept these offers if you're not happy, just keep it on the market if you're tied into a contract until you are happy. Perhaps tell him you're jot looking to accept any offers under the asking price and see if that miraculously increases the final prices.

@dodgyestateagent

To say I am livid in an understatement...

Got a friend to ring up today and put in a higher offer. She was given the same spiel about needing to put a 'best and final' offer in straight away as the property has had so many offers and is so popular. The estate agent then did his very best to put my friend off . He told her that she should 'only offer what's she's absolutely happy with, she's got to feel comfortable with her offer and not to go above that'. Even worse, he told her that 'the elderly woman who lives there needs to find somewhere else to live, therefore it won't make the stamp duty holiday, and to bear that in mind when she puts her offer in'... DM is going into assisted living, so that is a flagrant lie to put potential buyers off!!

Well done inspector gadget! That's some fantastic snooping done. I hope you can use that to get out of any exclusive contract you might be in with him. Threaten (and do) report him to whatever ombudsman he reports to.

Normally they want to get you the best price to maximise their commission!

In an "ordinary" sale, yes, but if he's organising a deal with a pal, the kickback he'll get will easily eclipse any commision he'd have made ... probably be tax free too

I understand disappointment and anger, but honestly don't know why people are shocked about this, given how common it is. It's not for nothing that estate agents are one of the least trusted professions, and while it's probably worth reporting I wouldn't expect much to happen ... he'll lie his way out of that too and claim the other offers "weren't proceedable" or something

@dodgyestateagent

To say I am livid in an understatement...

Got a friend to ring up today and put in a higher offer. She was given the same spiel about needing to put a 'best and final' offer in straight away as the property has had so many offers and is so popular. The estate agent then did his very best to put my friend off . He told her that she should 'only offer what's she's absolutely happy with, she's got to feel comfortable with her offer and not to go above that'. Even worse, he told her that 'the elderly woman who lives there needs to find somewhere else to live, therefore it won't make the stamp duty holiday, and to bear that in mind when she puts her offer in'... DM is going into assisted living, so that is a flagrant lie to put potential buyers off!!

Is it against the law to record a telephone conversation? I'm thinking call as another interested party yourself (or a friend) and go through the same this time recording it as evidence of the conversation having taken place. Or better off, going into the estate agent and recording it discreetly on phone?

I'm sure his actions are also illegal, right? Is there an ombudsman for the property industry?

Sorry OP but that title got me clicking so fast to see what daytime drama story was happening between your mother and the estate agent.

Just a few words from your OP and I can see it's a different kind of 'screwing'.

I'll read properly now.

Bloody cheeky bastard. He’s getting a back hander.
Great idea to have got your friend to call up.

I would see whether trading standards would be willing to make the same type of call to see their response and take it further. Regardless I wouldn't want to sell through him as trust has been broken and would confront him if trading standards won't get involved.

Nope, I don't believe him for a second.

Give him notice and get a decent agent. Oh and tell him why.

Picket his office with a board explaining everything. Get the local tv to turn up.

And yes, he's taking a backhander. I worked in estate agency years ago and there are some very good agents. Unfortunately, there are also some fucking arsehole agents and developers working hand in hand.

Is there an ombudsman for the property industry?

There's a Property Ombudsman, but like so many they're largely toothless
There's also the NAEA, though membership's voluntary, and various "guidelines" they're supposed to work to, but no stringent regulation's ever been imposed ... each time it's suggested the EA's promise to play nicely in future and the cycle continues

@CrumpetsForAll

Not helpful to you but I only clicked on to see if they were having an affair...

Haha my thoughts also.

But! You have to see all offers in writing and know their situations ie first time buyer ect.

Tell your friend to put in a best offer 20% over asking..... see what he does with his existing mate's offer

I would get someone to call up and enquire about the property and ask about the property and what the best price would be.. Sounds dodgy to me

He wants to sell it to a mate for below market value

Wow!