Ready willing and able

[InProgress]

I'm uneasy about the estate agents contract for selling my property. I have limited experience of selling property so am looking for advice as to whether this is normal or not.

Specifically:

1.the estate agents have sole selling rights for 16 weeks and continuing thereafter unless or until terminated in accordance with t&cs. Looking at t&cs that's 21 days written notice.

2.its a fixed fee including vat and including solicitors for sale (for info that's £2400) I'm responsible for disbursements, the estate agent said this would be £120 does that sound correct?

1. There's a 50% withdrawal fee if price agreed with a "ready, willing and able" purchaser. Plus £420 for marketing. Although the bit that says early termination compensation £60 per week is blank? This suggests that if I withdraw I need to pay £1620 + the £60 a week thing?

4.payment is due in exchange of unconditional contracts and payable on the earlier of completion or 60 days after exchange of contracts. However it also says that the commission fee is not paid in full within 10 days of the due payment date agreed in writing then interest is charged at 3% above base lending rate on a daily basis until payment is made.

They valued the house at £235-245k and they have someone interested already. If this buyer offers say £230k would that invoke the ready, willing and able clause?

Any advice in dealing with estate agents appreciated!

I have not signed the contract yet!

My experience is limited but to address some of your points:

1. Thats a very long period of sole selling rights. We went in the market with an agent who requested 8 weeks contract with a 2 week notice period - we didn't get a single viewing in the 8 weeks and handed notice in soon after and then not a single viewing after we have notice. It was a small company who gave a great sales pitch but had no oomph to really market it. Once we put it on with a more established agent the viewings came rolling in. By then I'd googled all sorts of advice and realised I should insist on a short contract and notice. I decided I would go no longer than 4 weeks with 2 weeks notice and spoke to 2 agents who were fine with this proposal.

Make sure it's sole agent rights not sole selling rights (sole agent means only they can market it for the contract period then you can go jointly with another agent. Sole selling rights means if someone knocked at your door and asked to buy privately then your agent contract means only they have the right to sell so you'd still have to pay them if selling privately)

1. Do not ever sign a 'ready, willing and able clause'. Say your situation changed unexpectedly and you could no longer proceed with a sale then you'd still have to hand them the money over.

1. I've only ever dealt with agents who say commission payable after completion. Not sure what they mean by exchange of unconditional contracts as I'm not sure anyone signs a contract saying I'll buy this house no matter what without any conditions to the sale! I guess once contracts are signed it's unlikely the sale will fall through so payment after exchange of contracts seems unusual but not unreasonable

Where we are (NW) none of the agents have ever had a fixed period of x weeks, though you do have to give notice to stop using them. Have they actually got your house on Rightmove, etc already or is the interested party someone on their books? I'd be negotiating those terms asap if at all possible. They sound like the terms of a particular EA known for their hard sell to me. I wouldn't use their in house conveyancer either, I'd choose my own.

I'll have a look into a conveyancer and get estimate of fees. No way disbursements will be £120.

They've done a brochure, and they've been round with potential buyers but it's not been advertised online yet.

They've done a brochure before you've signed with them

16 weeks is too long. We had 12 weeks and that felt like a lifetime.

I wouldn't go with fixed, % of sale gives a bit more motivation imo.

And they all say they've got interested parties so don't believe that!

Yes you're right about the "we've got people interested".
They did want 1% commission not including vat. Is too much or reasonable?

So to improve the contract

change "sole selling ageny" to "sole agency"
reduce 16 weeks to 6 weeks(?)
Find my own conveyancer (that my mortgage people approve of)
Remove the "ready, willing and able" clause?

Does that sound ok? Am I missing anything else?

I feel so anxious about it.

Hi , I'm by no means an expert but have sold a few property's over time and found several things to look out for

Either get a fixed fee that you are happy with or a % of ( actually achieved ) sale price that you are happy with - this is usually negotiable as they are competing against online agents like purple bricks

Get 3 or 4 valuations done ! Do not go with the first one . Using agents that are successful in selling property similar to yours , chose the agent you most like and feel safe with and go with the valuation in the middle - they may not be the same but most agents are happy to negotiate a value .

Most agents have a minimum number of weeks they are sole agent - usually 8-12+ then require notice in writing to end agreement
I've had several that "have someone interested " take this with a pinch of salt it's more to reel you in than anything else.

I always use my own conveyancing solicitor rather than one tangled up with the agent , I just prefer to know they are working just for me and with just my interests at heart
Any commission the agent earns is payable only on completion , usually the conveyancer takes this out to pay the agent plus their own conveyancing fee and sends you the balance

Some of the very glossy brochures type agents will charge extra for marketing / printing/ advertising your property - but if they already have a buyer why would this be needed ?

You should only be paying the average agent for things like perhaps an independent floor plan , EPC's etc

I did pay upfront once for an ' pole photograph ' like an Ariel photo done by an independent photographer but it was a specialist property that needed it , but I would expect all normal photos etc to be included in the agreement

Good luck with selling

In addition to what kingjoffrey has posted, I wouldn't expect to pay anything to an EA who didn't secure me a buyer.