Action against Estate Agent possible?

[kingston12]

Earlier this year, we made an offer on a house that we wanted to buy. As has become normal in this market, the offer was a sealed bid, sent by email.

We were called by the agent the next day to be told that a higher offer had been received, and I thought no more of it until I noticed today on the Land Registry figures that the house was actually sold for significantly less than we offered.

I realise that they are at liberty to sell to who they choose, and unfortunately I only have evidence of the offer being made, not the reason for it not being accepted.

I will write to the ombudsman and the head office of the agent, but I guess there is nothing that can really be done about this?

[Silent1]

Have they played silly buggers with money and paid for contents or split the land off?

[andy43]

But you've no idea what was picked up on the survey to affect the value?

[Fotic]

A) (As has been mentioned) The survey may have come back with issues that required a review of the offer.
B) The offer might not have been better than yours (regardless of what the agent said) anyway - the buyer may have been in a better position than you.

[kingston12]

Thanks for the replies. I will write to them to find the reasons and see if it had anything to do with the survey.

It is possible that the eventual buyers were in a better position than us, but we did have in excess of 50% cash deposit and the rest was on a mortgage that was already agreed in principle. I appreciate that 100% cash is better than that, but there was a very large difference between the offers.

[Revisitph]

Was it definitely a higher offer or a better offer, or did the estate agent use "higher" as a shorthand for better? I suppose you'll never know. When I bought our current house it was in poor condition, split into 3 flats and needed a fair bit of renovation and updating. The seller was an institution and as was unusual in those days, it was via (non-binding) sealed bids. I discovered later that the bids had ranged from about 75% to 125% of my successful bid but the reason I got it was that I'd already had a full structural survey and made my offer subject to contract only - so they knew what the final price would be and didn't have the hassle of potentially protracted negotiations over reductions after survey. Therefore my bid, though lower than the top two was of much higher quality and less hassle for them.

Only one question.... the new owner of the property you bid on isn't the estate agent or one of their relatives?

[Spare tyre]

Sounds fishy, but many factors like survey and who was the best bet for speed etc

Sounds like you are probably best left out of the dodgyness

[Spare tyre]

Sounds fishy, but many factors like survey and who was the best bet for speed etc

Sounds like you are probably best left out of the dodgyness

[blueg33]

I have just sold a property through an agent using sealed bids. We did not take the highest offer as other offers were in a better financial position.

A sealed bid tender is not binding on any party, only a Formal Tender is binding and then the terms have to be clearly communicated and contracts issued to each bidder. When the tender is accepted the contracts are exchanged.

You also need to account for the fact that many things can cause a negotiation and price change after terms have been agreed.

The agent has done nothing wrong at all IMO, Don't see any legal or moral obligation to buyers whose offer was refused.

[henrycrun]

EA's have been known to favour their friends and acquaintances.

[blueg33]

henrycrun said:

EA's have been known to favour their friends and acquaintances.

What has this got to do with it? You have no evidence, and yes there are criminals in all walks of life, it doesn't mean that everyone is a criminal

[kingston12]

blueg33 said:

I have just sold a property through an agent using sealed bids. We did not take the highest offer as other offers were in a better financial position.

A sealed bid tender is not binding on any party, only a Formal Tender is binding and then the terms have to be clearly communicated and contracts issued to each bidder. When the tender is accepted the contracts are exchanged.

You also need to account for the fact that many things can cause a negotiation and price change after terms have been agreed.

The agent has done nothing wrong at all IMO, Don't see any legal or moral obligation to buyers whose offer was refused.

Thanks for the reply. I agree, but the only thing that made me a bit suspicious was that I was specifically told there had been a higher offer (not a better offer).

[blueg33]

kingston12 said:

Thanks for the reply. I agree, but the only thing that made me a bit suspicious was that I was specifically told there had been a higher offer (not a better offer).

Most likely some re-negotiation has taken place

[Yell_M3]

Prob a friend of the estate agent. Happend to me twice. Move on.

[Renovation]

Really you need to talk to the sellers directly.

Perhaps the neighbours have their address.

Many agents / deals are dodgy - this may or may not be one of them.

You won't gain by pursuing it - which is why most don't however I agree that it should be stamped out.

[Yell_M3]

Just a note, one of the deals that went sour, was an attempted joint purchase with my mother for an investment property. She went to court and got about £500 quid comp. Just not worth it. The estate agent is still trading 8 years on. Unf many are spivvy scum.

[blueg33]

Renovation said:

Really you need to talk to the sellers directly.

Perhaps the neighbours have their address.

Many agents / deals are dodgy - this may or may not be one of them.

You won't gain by pursuing it - which is why most don't however I agree that it should be stamped out.

How do you stamp it out? Its already illegal for agents not to pass on offers

[kingston12]

I have had an update from the agent.

Apparently, it was a case of a naive vendor.

The original offer was slightly higher than ours, but the buyer obviously managed to get wind of the vendor's financial situation and used that knowledge to force them to accept a £70k gazunder on the day of exchange.

Oh well...

[Renovation]

blueg33 said:

Renovation said:

Really you need to talk to the sellers directly.

Perhaps the neighbours have their address.

Many agents / deals are dodgy - this may or may not be one of them.

You won't gain by pursuing it - which is why most don't however I agree that it should be stamped out.

How do you stamp it out? Its already illegal for agents not to pass on offers

By following up when you suspect it has happened.

A friend had this happen to him after he made a verbal offer - he just chalked it up to experience.

[paulrockliffe]

If something dodgy has occured, it would be a fraud against the vendor wouldn't it? The only way I can see to really do anything is to speak to them as it would be them that has been diddled. If you were prepared to give evidence then they might be able to take action if there's sufficient evidence.