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Original poster

How can I check whether Estate Agent is telling the truth on this?

21 replies

pippop1 · 15/11/2013 00:16

DS2 has been to see a flat which has a "guide price of £250,000 to £260,000" on Rightmove. It's in an area where property moves quickly.

He made an offer of £250k saying that he has a mortgage agreed in principle, a big deposit (more than 50%) and nothing to sell (he is renting).

Agent said that there is another buyer who offered £250k in cash and asked DS2 to increase his offer if he wanted the flat.

DS2 increased his offer to £260k with the proviso that he and the vendor pay half the stamp duty each (1.5%) so he would pay a total of £263,900 and the Vendor would actually receive £256,100.

A few weeks ago DS2 saw this flat with a different agent and it was on for a guide price of £260k to £270k. He liked it but had only seen one or two flats and wasnt sure. Now he really likes it.

Is there a way to ensure that this cash buyer that the agent talks about actually exists? DS2 thinks the correct price for the flat would be a little over £250k in the real world but the Stamp Duty skews the market.

I'm tempted to suggest to him that he calls their bluff and says he's changed his mind and can only pay £250k to see if the cash buyer disappears....

Any comments?

OP posts:

scurryfunge · 15/11/2013 00:20

Always assume estate agents are lying. Only offer what you think it's worth. Call their bluff.

Original poster

pippop1 · 15/11/2013 00:28

Thanks Scurry. Of course he is (possibly) acting to help his client but lying is wrong.

Has anyone successfully got a vendor to pay some of the stamp duty when the price is on the cusp of a threshold?

OP posts:

MoldieOldNaiceHam · 15/11/2013 00:31

Never trust an estate agent.

lostblonde86 · 15/11/2013 08:19

Don't trust them. We agreed a price with the seller of our house directly but for one reason or another we had to go though EA who told us the buyer wanted more, we all knew this was a lie and seller sold to us at agreed price... Don't trust them

MrMayoNessie · 16/11/2013 02:17

Agree with the above, the agent works for the seller and their commission is based on that, If the property is so close to 250k I would not offer more than 249,999m, even go lower as a starting price and work up to that price.

lljkk · 16/11/2013 03:09

Supposedly the bias of EAs is to undersell, they don't get paid until they sell, after all. So they don't like to wait long enough to actually get best offer.

How can you be so sure that the flat isn't possibly "worth" more than a tiny bit above £250k?

We went thru this 9.5 yrs ago. House listed for £255k and we kept offering very close to but not quite £250k (stamp duty threshold again). The EA dismissively & disinterestedly said that another bidder had offered much more, but the vendors weren't able to accept offers anyway as they hadn't found something they liked. We gave up, even decided to buy in another town. 6 weeks later we had a phone call to say that the owners were in a position to accept offers now; I was a bit indignant and almost laughed at them.

6 weeks again later I ran into the vendors who said that they didn't expect to sell or move now, not enough interest!!

So much would have turned out different if we had bought that house

Josie314 · 16/11/2013 03:16

I think he really has to consider how much he wants the place and offer what he is happy with. Sometimes estate agents do tell the truth. We lost a flat once where the EA told is exactly what we had to offer to get it. We demurred as it was a stretch for us. The other offer got it for £2k less than what the EA told us to offer. If something like this happened, would he be gutted? Or feel he gave it his best go?

Original poster

pippop1 · 16/11/2013 15:03

He does really want it and is still waiting to hear about his offer of £260 with he and the vendor paying half the stamp duty each. the fact that they haven't come back and bitten his hand off suggests that it is true that there is a cash buyer. They are probably waiting for the cash buyer to up their offer.

Sneakily I called the estate agent and asked what the service charge was on the flat (I was going to then ask if they had any offers) ...they immediately said that the flat had already been sold. DS then called them to find out if his offer had been accepted and they said the vendor hadn't come back to the EA yet!

OP posts:

HairyPorter · 16/11/2013 15:09

I would be inclined to believe them depending where you are. Things are hot at the moment in London with properties going to sealed bids well over asking price.

LIZS · 16/11/2013 15:14

No you can't but if he threatened to just walk away or showed interest in another property with another agent he might find that the other offer disappears!

LibraryBook · 16/11/2013 16:34

If he saw the flat with a different agent, the different agent may be due the commission, or part of the commission, on the sale. The agent possibly recognises this and would rather sell to buyer for which the agent can collect the entire commission.

If you put an offer in writing, I believe the agent is bound to pass it on to the vendors, in writing.

daytoday · 16/11/2013 16:39

I think many renters are now buying. The market is berserk and there is every chance he will have to pay more for a less attractive flat in a few weeks.

Original poster

pippop1 · 17/11/2013 16:10

It's in the Brighton/Hove area in an excellent position. Well they didn't come back to him on Sat so I'm inclined to believe there is a genuine cash buyer who they have asked to increase their offer to compete with DS's.

I think you are right Daytoday. Also his current rental runs out in March so he would like to have somewhere to live before that or may have to sign up for another 6 months which is not ideal (and expensive - which is the whole point of buying somewhere - to save money in the long run and get on the property ladder).

Thanks for all your advice.

OP posts:

Mandy21 · 17/11/2013 18:46

Sorry, did you just put "estate agents" and "truth" in the same sentence ?!

Call their bluff. IMO it is highly unlikely that there is another buyer in as good a position as your son.

Original poster

pippop1 · 17/11/2013 20:46

Ha ha Mandy21. Have you had a bad experience?

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Mandy21 · 17/11/2013 21:43

Not really but they are not regulated and at the end of the day, they are working for the seller themselves. They are game players imo and they know that potential buyers have no way of knowing whether there is another interested buyer or not. They never put those details in writing "Dear Mr X, thank you for you offer but there is another buyer in similar circumstances who has made an offer at the same level. We have put both offers to the vendor and as soon as we hear back from him, we will be in touch". If it was, and a potential buyer complained, the file could be checked. Its all done underhand, with no records, its just a farce.

Sorry, I think the whole profession (if you can call it that) isn't trustworthy and until its properly regulated, it wont change. There may be individuals who work fairly though.

Original poster

pippop1 · 19/11/2013 19:05

EA came back to say no to DS's offer as the vendor didn't want to split the stamp duty with him as it's "too complicated"

DS has now offered less but with DS to pay the whole stamp duty (actually will cost DS the same). This is unlikely to work but he thought he'd give it a try. Meanwhile he is seeing another flat tonght, one tomorrow and one on Saturday.

OP posts:

cq · 19/11/2013 19:11

He's in a strong position, ready to proceed. I can't think there are many cash buyers out there - any that were there will have tried to buy before the new help to buy scheme kicked in and started the stampede.

If this flat doesn't work out, there will be others. He needs to get himself known to all the agents so that as soon as something is about to come on the market, they will think of him. I had to do this in our town - was on first name terms with all the slippery smarmy lying toads.

beaglesaresweet · 19/11/2013 23:47

EA's keep telling me that cash buyers are not some holy grail because most people do get mortgages, it's purely relevant if the seller wants a super-speedy sale.

beaglesaresweet · 19/11/2013 23:48

'was on first name terms with all the slippery smarmy lying toads'

Original poster

pippop1 · 20/11/2013 15:09

Development today: DS offered 255 with DS paying all the stamp duty and vendor has accepted this! This works out the same as his previous offer of £260 plus 1.5% stamp duty split between vendor and buyer. DS is v pleased to have secured it.

We will see place and cast a parental eye over it before he spends money on a survey (He asked us to do this as he is FTB).

OP posts:

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