Flat sold for 40k less than advertised. Wrongdoing by agent?

[zedstar]

Round my way now we seem to have had a change of heart from the local busy estate agents.

They appear (in the last month anyway) to offer a private client service, where they will sell you properties which they know are for sale but aren't marketed yet- 1% plus VAT.

They'll make a lot of money out of this.

[Fonzo]

Having worked a bit in agency, for my sins, I would say there are 3 likely possibilities:

1. There's a dodgy dealing, the agent sold it to a friend.
2. There were unexpected expenses associated with the flat such as major works, and the price was renegotiated after the sale was agreed.
3. The flat had a short lease, and it was sold at a discount, but marketed at the price it would be with the extended lease to attract the right buyer.

[Heaveho]

Fonzo said:

Having worked a bit in agency, for my sins, I would say there are 3 likely possibilities:

1. There's a dodgy dealing, the agent sold it to a friend.
2. There were unexpected expenses associated with the flat such as major works, and the price was renegotiated after the sale was agreed.
3. The flat had a short lease, and it was sold at a discount, but marketed at the price it would be with the extended lease to attract the right buyer.

Given the length of time I've lived here ( in the same type of properties with the same leases and maintenance programme ), I can be fairly confident that 2 and 3 in your list won't be an issue. That doesn't mean I think number 1 is especially likely, just that I have less knowledge about that possibility.

[donkmeister]

Sheepshanks said:

I've never understood how this business of EAs passing on other offers is supposed to work. In practice, once they regard a sale as under way they stone-wall other interested parties.

Not sure that's true... EAs passing on higher offers once a sale is going through is so commonplace we have a word for the sale to the newer, better offer: gazumping.

[C Lee Farquar]

In my experience Estate Agents don't have anywhere near as many friends as PH posts suggest.

[blueg33]

zedstar said:

Round my way now we seem to have had a change of heart from the local busy estate agents.

They appear (in the last month anyway) to offer a private client service, where they will sell you properties which they know are for sale but aren't marketed yet- 1% plus VAT.

They'll make a lot of money out of this.

They cannot charge a fee to both buyer and seller without declaring it to the parties. The Estate Agents Act is crystal on that.

[Sheepshanks]

donkmeister said:

Sheepshanks said:

I've never understood how this business of EAs passing on other offers is supposed to work. In practice, once they regard a sale as under way they stone-wall other interested parties.

Not sure that's true... EAs passing on higher offers once a sale is going through is so commonplace we have a word for the sale to the newer, better offer: gazumping.

I suppose what typically happens is as the OP described, and perhaps some people are more forceful and do submit written offers.

We sold a Probate house and had people contacting us through neighbours saying the EA wouldn't talk to them (local builder bought it cash, for asking price but it was tough to value) and FIL had people knocking on his door for same reason. He was messed about by his buyer and it could have been useful to have had other interested buyers in the background.