Put off a house due to agent fees

[Chunkycookie]

We have found the perfect house. It’s but a project which we have done before and can so again, and it’s in the perfect area.

Only, the agent they are with charges extortionate fees to the buyer.

They will accept an offer of 310k, but at that price, the fees to the agent that we as the buyers pay are nearly 8k!

I’ve never heard of anything like that before. it’s really off putting. We are going to have to offer less to reflect those fees.

Anyone else heard of this? I’ve bought and sold 6 houses in my time, I would never consider an agent who charged the buyer fees, way to put people off!

Really unsure of what to do.

whaaaaaaaaat???

Isn’t it mental?!

Buyers fee of 1% plus VAT, plus another fee. Dh worked it out to be just shy of 8k.

(Maths isn’t mathing, it’s been a long day).

I’m Honestly gobsmacked. I’ve not heard anything like it, ever.

In which country, England?
Yes that would put me off/reflect in any offer I made.

Yup, England.

This isn't usual in the UK. Wouldn't touch it with a barge pole.

My thinking.

I don’t understand it at all.

Who on earth charges a buyers fee? It’s absolutely ridiculous.

This shouldn't happen. Is it an auction house rather than a traditional EA?

Does the EA charge the buyer instead of the seller?

If so, it would give me a very poor impression of the seller, I’d assume they were cheap skates - and it would make me worry hugely about how they’d saved money when owning the house.

It would be a nope from me.

Is it one of those "modern auction" things? I've seen those with buyer paying large sums.

It's like vinted but estate agency. So the seller gets the full price, as the buyer is paying the fees? Best thing to do is offer a lower price and enough left to cover this fee.
I'd only expect fees to the buyer if it's an auction property.

No, traditional estate agent.

1% buyers fee

• vat on that +3k administration fee

I don’t think that’s legal.
I’d drop a note to the seller explaining, and then I’d report the agents - to Trading Standards, to the Estate agents regulator ( is it FRICS?) and anyone else I could think of. That is appalling practice!

It’s not auction. It’s so, so odd.

And a real shame as it’s the perfect house in the perfect area.

I've seen this before with a probate sale. I think it's when family doesn't have the funds to pay the fees.
It's not illegal just offer based on the fact you are paying the fees

Strong no from me, and I would be explaining exactly why.

Or, alternatively, I would make an offer, but for £310 less the additional fees.

...Just found online: there is an estate agent called FreeAgent247. Based in Worcester but mostly online. Apparently it's legal.

Ah, would make sense.

Yes it looks like a probabte sale.

But wouldn’t the EA fees be paid out of the purchase price and transferred by the solicitor on completion, as usual?

Maybe the property has huge charges over it for equity release, care home fees and other debts and there is not enough left.

Does the fee get paid to the EA on completion?

IF it was all legit I suppose I would go ahead but my offer would be lower by the amount of EA fees (incl of VAT). And only if the money was payable on completion, no obligation or liability if it all fell through.

Surely the estate agents fee would be paid upon the sale (and therefore funds) of the house?

A google has found me down a rabbit hole about buyers agents who charge buyers for finding them a house - could this estate agent also be a buyers agent and maybe there is some poor communication or badly written information on their website about fees? (Easily done - have developed a nervous twitch trying to understand stamp duty on a non standard purchase).

Talk to buyers, find out when their contract with the dodgy agent is up and buy after that.

And no, the agents can't chase you or them for fees as the law states they have to get the sale through, not merely introduce the buyer. In this case they are hindering the sale. And you haven't signed a contract with them anyway!

With a probate sale, the solicitor receives the proceeds, which are added to the deceased's estate. They then use money from the estate to pay any outstanding fees including their own and the estate agent's fee as well. That's what happened when we sold a deceased relative's home last year. No reason why the buyer should have to pay a fee as well.

Have you asked the estate agent about the fees and why the buyer pays fees? I wouldn’t continue with it unless you can afford it 1% then a 3k admin fee is just under 7k in fees but then you’ll have stamp duty and solicitor fees so you’ll need like 10k just in fees!! I’m not sure why they’d need a 3k admin fee on top of the 1%, what’s the 1% for if it’s not admin?

@Coconutter24 greed aka profit?

Firstly find out if it is a probate sale. If it isn't, use land registry to find out who owns it and drop them a letter to say you may like to purchase but are not happy with the purchase fees.

Nothing to lose, and lots to gain.

As the EA has introduced you to the property the seller will still have to pay the EA any fees, but that does not mean you have to.