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

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

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Heaveho

Original Poster:

5,279 posts

173 months

Sunday 20th June 2021
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I attempted to buy a local flat nearby a few months ago. It was advertised as " offers over 170k ", and when I enquired, was told there was already 9 other interested parties. I figured that being the case I would probably not end up with it, but left contact details. Fast forward to a few months later, and it's appeared on various websites as having been sold for 132k.

After a call to the selling agent, this has been confirmed. Anything's possible, there may well obviously be nothing wrong with this, but having had negative experiences with agents previously, part of me wonders how this situation has come about.

bunchofkeys

1,046 posts

67 months

Sunday 20th June 2021
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Estate agent probably sold this to a mate.

barryrs

4,376 posts

222 months

Sunday 20th June 2021
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Maybe it has/had lease or cladding issues that you aren’t aware of and the owner had to take a bath to get out.

Hawkshaw

160 posts

34 months

Sunday 20th June 2021
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Frustrating, but probably nothing wrong IMO. The agent is obliged to pass on all offers however high or low to the seller, so that may have been the best offer - or at least the best offer from someone who was actually proceedable, and if that suits the seller it is up to them. Annoying though if you were able to pay more. It's a strange market at the moment.

Countdown

39,691 posts

195 months

Sunday 20th June 2021
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Heaveho said:
I attempted to buy a local flat nearby a few months ago. It was advertised as " offers over 170k ", and when I enquired, was told there was already 9 other interested parties. I figured that being the case I would probably not end up with it, but left contact details. Fast forward to a few months later, and it's appeared on various websites as having been sold for 132k.

After a call to the selling agent, this has been confirmed. Anything's possible, there may well obviously be nothing wrong with this, but having had negative experiences with agents previously, part of me wonders how this situation has come about.
Possibly £132k was the best offer the owner had had and the EA advised him to accept?

It sounds like you hadn't made an offer. I don't think the EA is obliged to contact everybody who has expressed an interest tbh (although we were recently contacted about a property we had inquired about).

voyds9

8,488 posts

282 months

Sunday 20th June 2021
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If you didn't put in an offer what would the estate agent take to the vendor.

Darkslider

3,071 posts

188 months

Sunday 20th June 2021
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Could have been a big £40k issue rear its head during the surveying/searches process so there was a renegotiation, maybe the roof is on its last legs for example.

Heaveho

Original Poster:

5,279 posts

173 months

Sunday 20th June 2021
quotequote all
Countdown said:
Possibly £132k was the best offer the owner had had and the EA advised him to accept?

It sounds like you hadn't made an offer. I don't think the EA is obliged to contact everybody who has expressed an interest tbh (although we were recently contacted about a property we had inquired about).
Strange situation to advertise it for offers over 170, have 9 people interested and take 132. For the sake of a few phone calls you would imagine they would ring interested parties on behalf of the seller. The only reason I didn't get involved further is because of the way it was advertised. They had initially placed it at 125k ( to get the phone ringing, I imagine ), then, upon inquiry, were telling interested parties the 170 and above story.

I would have given 150. It's in a very sought after lettings part of the city, I already own 2 properties here ( I live in one ), am currently extending the lease on both for sensible money, and the properties concerned are subject to monthly maintenance fees which cover the cost of repairs to the structure, so there won't be any issues with regard to buyers being put off for such reasons. As said though, who knows what may be going on that I don't know about.

I've owned here for about 10 years. I was hoping to buy it for my MIL. Sometimes things aren't to be.

InitialDave

11,856 posts

118 months

Sunday 20th June 2021
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Darkslider said:
Could have been a big £40k issue rear its head during the surveying/searches process so there was a renegotiation, maybe the roof is on its last legs for example.
Cladding liability issue?

Heaveho

Original Poster:

5,279 posts

173 months

Sunday 20th June 2021
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InitialDave said:
Cladding liability issue?
Doesn't have any, not that kind of building.

anonymous-user

53 months

Sunday 20th June 2021
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You’ve got to be in it to win it, costs you nothing to put an offer in even if you think you’ve no chance.

Sheepshanks

32,541 posts

118 months

Sunday 20th June 2021
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Heaveho said:
Strange situation to advertise it for offers over 170, have 9 people interested and take 132. For the sake of a few phone calls you would imagine they would ring interested parties on behalf of the seller. The only reason I didn't get involved further is because of the way it was advertised. They had initially placed it at 125k ( to get the phone ringing, I imagine ), then, upon inquiry, were telling interested parties the 170 and above story.
So it was never advertised at offers over £170K?

Does seem a bit weird - perhaps someone submitted a "blow-out" offer, then dropped on Exchange and the buyer accepted. But taking a near £40K hit seems unlikely.

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.

Pistonheader101

2,206 posts

106 months

Sunday 20th June 2021
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Unless you’ve actually made a formal offer, then it’s just a shoulda coulda woulda

Heaveho

Original Poster:

5,279 posts

173 months

Sunday 20th June 2021
quotequote all
Sheepshanks said:
So it was never advertised at offers over £170K?

Does seem a bit weird - perhaps someone submitted a "blow-out" offer, then dropped on Exchange and the buyer accepted. But taking a near £40K hit seems unlikely.

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.
No, it was only ever made clear about it being " offers over " when on the phone. No big deal, more confused about the process than bothered about not getting the flat.

BertBert

18,955 posts

210 months

Sunday 20th June 2021
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Heaveho said:
No, it was only ever made clear about it being " offers over " when on the phone. No big deal, more confused about the process than bothered about not getting the flat.
And what laws are you suspecting to be broken, given we are in the SP&L section?

tleefox

1,110 posts

147 months

Sunday 20th June 2021
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Shared equity?

av185

18,434 posts

126 months

Sunday 20th June 2021
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99 year lease with onerous terms?

Wasting asset with less than 85 years lease remaining?

kestral

1,726 posts

206 months

Sunday 20th June 2021
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bunchofkeys said:
Estate agent probably sold this to a mate.
All the good stuff goes to family/friends or cash buyers. The punters get the ste that has been on the market for months and months.yes

Heaveho

Original Poster:

5,279 posts

173 months

Monday 21st June 2021
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BertBert said:
And what laws are you suspecting to be broken, given we are in the SP&L section?
If you thinking it's in the wrong section is keeping you up at night, ask to have it moved.

Heaveho

Original Poster:

5,279 posts

173 months

Monday 21st June 2021
quotequote all
av185 said:
99 year lease with onerous terms?

Wasting asset with less than 85 years lease remaining?
The lease is in the 90 year area, but they are cheap to extend. I'm paying between 2-3k for my flat and 3-4k for my house in the same complex to extend the leases on them. The flat I missed is in exactly the same situation.