Estate agent query

[Niceeyes]

My DB and SIL are selling their house, it’s been on the market 5 months with one agent and had 3 failed sales for various reasons ( chain falling through on 2 and mortgage issues with the 3rd), they have marketed it on the higher side of what other similar properties go for and it does need cosmetic work.

They have decided to go dual agent but to increase their asking price by £15k … they asked me for my advice and I gave them my thoughts.

firstly if it wasn’t selling at the original price for various reasons with the first agent then why the increase?

also will the first agent want to up the price by £15k when they struggled to sell it at less?

Then if they go dual agent it will still show up as an older listed on Rightmove with the original agent.

I said they should release themselves from the first agent and then their listing will be brand new with the New agent…

they are adamant that dual agents will sell better by putting them in competition but I’m struggling to see why they are going to increase by £15k

im worried they will be left with their house sitting on the market way too long

thoughts? Advice I can maybe give them?

Estate agents absolutely hate multi-agency contracts, the putting them in competition with each other does not work at all in any way, shape or form.

Unless they are absolutely useless and hopeless, the original agents will be doing all they can to find a buyer for this house. No sale, no fee remember and they need their fees. They have found three buyers already, to be fair to them.

Your db and sil's idea of raising the price (presumably they're arguing they will have to pay a higher fee so need more money) is utterly laughable I'm afraid. The original agents will refuse to touch it, any new agents might take it on but will be arguing for a substantial reduction in price almost immediately.

Your instincts are completely correct on this OP.

Thanks… yes I’m worried they will make it look less attractive by demanding a higher asking price… it’s lovejy house but nothing has changed in 5 months that would merit the drastic increase… they really need to sell as they are moving far away but I just told them to at least go with a different sole agent if not happy with this one and do not increase the asking, in fact I’d say ask for slightly less to gauge more interest, fingers crossed they listen but I’m doubtful

It’s a stupid move, the markets are crashing the economy is tanking, if they want to sell they stick with the agent they have and reduce the price quickly. The agent has found them buyers, why move?

In the days before Rightmove, when people searched for properties by looking in estate agents windows, multi agency made sense.

These days everyone uses Rightmove. So no matter if you list with one estate agent or 10, it will seen by the same number of buyers. If anything multi agency just makes sellers look desperate now - when Rightmove shows 2 or 3 listings for exactly the same house.

Estate agents will normally ask for higher fees for multi agency, and you often have to pay both agents no matter which one agrees the sale.

As for increasing the price. WTF?

Crikey … will property prices start to drop with all this Trump business? I am so worried for them, their original agents are really good, I just think they are desperate and that’s why multi agent I as their option.. they’ll rent their property out if it doesn’t sell but I feel like they are wasting time with 2 agents right now … ho hum … I’ll just have to stay out of it … I know it’s one of those ‘I told you so’ scenarios

@NiceeyesI doubt they will crash, as interest rates may have to reduce, people need to move but there is a marked slow down in sales and transactions as people will sit tight as redundancy rates are increasing.

Good to know thank you

Your advice looks great to me @Niceeyes
Dual agents just looks desperate and people who are looking to buy in the area will just roll their eyes at the price hike when it hasn't sold in 5 months.

If they seriously want to sell, switch to a new agent, ensure that the new listing looks fantastic and reduce the price 5-10%.
As another poster said, the economy is heading downwards and that will likely reduce house prices over time.

Agree….hoping it’s sells asap to I don’t side on the side stressing over my DB 😬

You sounds like a lovely sister @Niceeyes. Is he your baby brother?

Yes he’s the baby… so I’m always worrying about him

A multi agency contract usually attracts higher fees from the estate agent. It also smacks of desperation. There’s just no need to go multi agency these days with the Internet and stuff. They should cut their losses with the old agent and start a fresh with a new one at the same price.

Here's what I think about price rises right now, at this specific point in time: 'oh dear, they didn't sell before the stamp duty discounts ended and now they can't afford their stamp duty on their onwards purchase, so they've put the price up.

... not my effing problem.'

I then close my browswer/move on to next property.

In fact I've done that in the last week when exactly this situation has happened with a property I've had my eye on for a few months increased by 20k on 1st April.

If I didn't want it at X price, I certainly don't want it at X + 20k.

The only way is to price drop significantly and hope that garners new interest, or to change agents and hope they've got a waiting list of keen buyers.

Property Log shows me all pricing history, btw.

Oh and multi agency is a sure-fire way to look completely desperate and have nothing but cheeky f'kers through the door who will start lowballing with -20% the asking price offers.

Multi agency might work in a buoyant ecomony to start bidding wars, sure, but we haven't been in a buoyant market since late 2022.