nick205
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| posted on 17/1/13 at 10:50 AM |
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house buying Qs
If you make a formal offer on a house with the estate agent are they legally bound to inform the seller of the offer?
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matt_gsxr
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| posted on 17/1/13 at 10:57 AM |
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Sadly I don't think that the law has much to do with how estate agents behave.
They have some code of conduct, but I doubt it is policed.
Post a letter through the letterbox of the house to confirm what you have done perhaps.
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nick205
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| posted on 17/1/13 at 11:07 AM |
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A bit more Googling has answered the Q. It appears they are bound by the Estate Agency Act 1979 to advise of all offers in writing to the seller.
http://www.oft.gov.uk/about-the-oft/l
egal-powers/legal/estate-agents-act/handling-negotiations#.UPfbPIcmxuM
[Edited on 17/1/13 by nick205]
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mookaloid
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| posted on 17/1/13 at 11:13 AM |
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They are bound to unless the seller has previously instructed them not to under particular circumstances eg if the offers are below a certain level.
"That thing you're thinking - it wont be that."
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dhutch
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| posted on 17/1/13 at 11:19 AM |
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Interesting question to ask. I made a few low offers during my own house buying experience, and typically was met with 'I dont think the seller
will be interested in that offer, would you like to offer more' type questions but was always quite firm that was my offer and that I wanted it
putting to the seller, as didnt get the impression that having requested it it would then not get put though to them. I then got
'confirmation' of my offers via post, from the estate agent, a day or so after.
Daniel
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wilkingj
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| posted on 17/1/13 at 11:39 AM |
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I had the "I dont think they will be interested" answer.
I said, thats my opening offer, and I like to haggle.
I got a NO back within 15 mins, However it opened the negotiations, and I got it for a lot less than the asking price.
Also being a Cash buyer is a big advantage. ie No House selling chain involved.
It paid off, and we came to a good price for me!
Mind you it was in a recession (1991) and they were going thru a divorce and the wife let out personal financial info, so I knew I could press fairly
hard.
Never discuss your personal or financial circumstances, it gives the other party a clue to how hard they can push the price / haggling.
Its like a game of poker, keep your cards close to your chest, and a straight face.
Also get a proper independent survey, preferably a structural one.
The Bank / building Society are only interested in whether they can get their money back if you default for any reason. They are not interested if the
roof is falling in, or the floor slopes. They might be interested if it needed underpinning, as they usually have ties into the insurance they sell
you!
Just my 2d's worth.
1. The point of a journey is not to arrive.
2. Never take life seriously. Nobody gets out alive anyway.
Best Regards
Geoff
http://www.v8viento.co.uk
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designer
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| posted on 17/1/13 at 11:58 AM |
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They have, by Law, to inform the seller, and the Agent would be stupid not to, just 'in case' he will accept. The Agent is after the
commission at the end of the day, and any sale is better to them than no sale at all.
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theduck
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| posted on 17/1/13 at 12:26 PM |
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Estate agents are bound to report ALL offers regardless of vendors instructions.
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dhutch
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| posted on 17/1/13 at 12:55 PM |
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quote:
Originally posted by wilkingj
I had the "I dont think they will be interested" answer.
I said, thats my opening offer, and I like to haggle.
I got a NO back within 15 mins, However it opened the negotiations, and I got it for a lot less than the asking price.
Also being a Cash buyer is a big advantage. ie No House selling chain involved.
Its all about that. I was buying it as somewhere to live for a
few year, local to work, and rent out a room or two, so one tatty 3/4 semi was much a-like another, so I went with the 'car buying' model
of bartering.
Obviously if your more fixed on what you want, you might not be able to do that, but it worked for me as I got a decent wedge off a house that had
already had its price dropped recently.
I wasnt a cash buyer, but was free from a chain as buying my first house.
Daniel
[Edited on 17/1/2013 by dhutch]
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nick205
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| posted on 17/1/13 at 03:13 PM |
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All useful input, so thanks gents.
My reason for asking is probably a little underhand and I was hoping the answer was no they're not duty bound to inform.
The scenario is this...
We've made a low offer on a house. There are no other offers at present, but 2 other "interested cash buyer parties" according to
the agent. The agent has let slip that the seller needs to sell quickly to deal with some debts.
We have also placed our house on the market with the same agent as of tomorrow. The agent has 3 viewings arranged for Saturday, two of whom are cash
buyers.
The agent stands to benefit form 2 commissions if he sells both houses. But only 1 commission if he finds another buyer for the house we want to buy.
We've been very firm that if we don't get the house we'll take our house off the market and stay put.
I'm hoping this counts in our favour, but there is always the risk that someone betters our offer. My question was therefore trying to identify
whether the agent could/would play his cards by not passing on another buyers better offer because it meant less commission for him.
Like I say, probably underhand, but all's fair in love and war etc.
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dhutch
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| posted on 17/1/13 at 04:14 PM |
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quote:
Originally posted by nick205
All useful input, so thanks gents.
My reason for asking is probably a little underhand and I was hoping the answer was no they're not duty bound to inform.
I like it. Good luck with the purchase either way!
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mark chandler
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| posted on 17/1/13 at 06:37 PM |
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When I was selling I would not except any offers from anyone without them being cash buyers or having already sold their property pending contract on
a new purchase e.g proceed-able purchasers.
We have just bought, the house was offers in excess of so we offered the starting price with a commitment to be in within 8 weeks, time slipped a
little but we got a bargain.
I believe the estate agents are still trying to maintain a market above houses true worth, we sold within 48 hours by setting a price below the estate
agents valuation by 7.5% on the basis we would win more off our next purchase.
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nick205
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| posted on 17/1/13 at 10:08 PM |
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quote:
Originally posted by mark chandler
When I was selling I would not except any offers from anyone without them being cash buyers or having already sold their property pending contract on
a new purchase e.g proceed-able purchasers.
We have just bought, the house was offers in excess of so we offered the starting price with a commitment to be in within 8 weeks, time slipped a
little but we got a bargain.
I believe the estate agents are still trying to maintain a market above houses true worth, we sold within 48 hours by setting a price below the estate
agents valuation by 7.5% on the basis we would win more off our next purchase.
Our current house is priced to sell and below the agents suggested price. It's also in tip top order ready to move straight into.
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