Two estate agents

[rosesarepink2]

Posting on behalf of a friend.

My friend wants to sell their house and been on the market for a while with one estate agent since the start of the year. This agent has not got them many viewings but one of the viewings did make a very low over (over £100k off asking price). The house has a lot of land and is a great development opportunity.

My friend turned down this offer but the buyers have kept the offer on the table. The estate agent keeps pushing for them to accept this offer and hasn't marketed the house well since. It soon transpired that the director of the estate agent is good friends with the buyers.

Frustrated with the low interest and no more viewings, my friend then contacted another estate agent and enquires about going with them. The new estate agent said they had spoken to original estate agent and clause in the contract to give 21 days notice would be waived as estate agent 1 takes estate agent 2s clients all the time. Friend isn't too clued up about these sorts of things so Trusts what estate agent 2 says.

House is now advertised with estate agent 2. But estate agent 1 has now turned around and said friend will have to pay them commission even if estate agent 2 sells the house, even if it isn't sold for months and months. Estate agent 2 also her friend who made the low offer are devastated about the house being on the market with another agent.

Is this right? And what options does friend have? They are now worried sick. Is it best to take house off market completely?

Read Estate Agents 1 contract.
Take house off market and find another agent.
Neither sounds professional.

It depends on the contract with estate agent 1. If it is a sole selling right agreement they are entitled to be paid regardless of who sells it. If it is a sole agency agreement they are entitled to be paid even if estate agent 2 arranges the sale but they would not be paid if your friend finds a buyer without using any estate agent. The contract may also say that any sole agency or sole selling right continues for some time after the contract is terminated. If your friend follows the previous poster's advice to take the house off the market they may need to wait several months before trying again if they want to avoid having to pay estate agent 1.

Regarding estate agent 1's behaviour over the offer that has been made, many people believe that estate agents are motivated to get the best possible price for the seller. The reality is that they are strongly motivated to push the seller to accept the first decent offer.

Regarding estate agent 1's behaviour over the offer that has been made, many people believe that estate agents are motivated to get the best possible price for the seller.

Isn't the reality estate agents are motivated to get the best possible fee ?

Isn't the reality estate agents are motivated to get the best possible fee

Since they are generally paid on commission, many people believe that they will always want the best possible price for the seller so that they get the best possible fee. Unfortunately that isn't true.

Imagine you are selling your house and the asking price is £500k. You've agreed a 1.5% fee with the agency so, if it goes for the full price, they will get £7,500. The individual agent who handles your sale gets perhaps 5% of that - £375.

If someone offers £450k, that is £50k below your asking price. That's a lot of money to you. However, for the agent handling your sale this will result in their commission going down by just £37.50. So for them it is a choice between £337.50 today or sitting it out and hoping they might get another £37.50 in a few weeks or months. What would you do?

Fixed fees, of course, just make matters worse. Now the selling price makes no difference to the agent at all. They just want you to sell so that they can get paid.

On average an estate agent selling their own home keeps it on the market for 10 days longer and sells it for 3% more.

Depends on what she's signed in the contracts with both.

She needs to read through the contracts really carefully and maybe end the contracts with both agents by taking the house off the market. Then trying again once the time in the contract has ended. If she has paid for floor plans, epc and photos these should be forwarded to her so she can use them again.