Estate Agent fees
Discussion
A bit of legal/business advice required here. In a rush to get ze house on the market (more on the agents part that mine) we didn't even get to the point of negotiating fees - i have not even signed anything yet. They have already found a buyer and i may have an offer as soon as next week.
Now, i don't want to be a shyster but am i within my rights to push them down on the % commission? My hope is nearer the 1% mark. As a sidenote, I am doing all the viewings, so it's not like i owe them anything - but as a principle i want to act fairly in any business dealings.
Now, i don't want to be a shyster but am i within my rights to push them down on the % commission? My hope is nearer the 1% mark. As a sidenote, I am doing all the viewings, so it's not like i owe them anything - but as a principle i want to act fairly in any business dealings.
You may find that buyer is a hook to use their services and once you've signed they suddenly disappear of the face of the earth.
Ultimately, you need to negotiate the fee in the same as you would normally. Them not doing the viewings is not really related to the fee - you are paying them to find a proceedable buyer and negotiate an acceptable price. If this buyer is real, then they are very good at their job and you should pay them accordingly. Or you could go with a cheaper EA and wait 12 months for a buyer.
Ultimately, you need to negotiate the fee in the same as you would normally. Them not doing the viewings is not really related to the fee - you are paying them to find a proceedable buyer and negotiate an acceptable price. If this buyer is real, then they are very good at their job and you should pay them accordingly. Or you could go with a cheaper EA and wait 12 months for a buyer.
Just discuss it with them. If you have an open conversation with them along the lines of 'I completely forgot to discuss percentages blah blah, given the ease that you've found a prospective buyer already, I was thinking around the 1% mark' - they should be open with you if they're decent (it seems like a quick buck for them and starting low will give them a little less room to go in higher).
Be friendly with them and you will almost certainly get further than you would if you went down the 'I want 1% or I'm going to X over the road' route!
Be friendly with them and you will almost certainly get further than you would if you went down the 'I want 1% or I'm going to X over the road' route!
So they have done a good job and sold your house quickly, and now you want to knock the fee. Would you prefer to pay them more for taking longer to sell your house?
Some people.... You know that most people don't like Estate Agents. What you don't know is why most Estate Agents do not like their clients...
ETA Do make sure that you are happy with the offer and are confident that you are not underpriced. You will always wonder otherwise.
Some people.... You know that most people don't like Estate Agents. What you don't know is why most Estate Agents do not like their clients...
ETA Do make sure that you are happy with the offer and are confident that you are not underpriced. You will always wonder otherwise.
Edited by davidjpowell on Thursday 28th April 19:59
Depends on the type of estate agent you used. The upmarket ones have silly fees!
Have they really already found a buyer? Have you even showed them round yet? Did you mention that anyone else would be round to value the house aswell?
I would give them a call tomorrow or Saturday and say you are delighted they may already have someone lined up, but you haven't signed anything yet and you still haven't discussed fees, and so it's probably best to sort that before it goes any further.
Otherwise you'll just be wasting everyone time.
Or you can put it on with another, cheaper agent. If the people are really interested, they'll actively be looking at what's new to the market, so they'll see the house on with the other agent anyway.
That might work if you've not actually signed anything yet, as none of it is official? They can't introduce someone to a house they haven't contractually agreed to market?
Have they really already found a buyer? Have you even showed them round yet? Did you mention that anyone else would be round to value the house aswell?
I would give them a call tomorrow or Saturday and say you are delighted they may already have someone lined up, but you haven't signed anything yet and you still haven't discussed fees, and so it's probably best to sort that before it goes any further.
Otherwise you'll just be wasting everyone time.
Or you can put it on with another, cheaper agent. If the people are really interested, they'll actively be looking at what's new to the market, so they'll see the house on with the other agent anyway.
That might work if you've not actually signed anything yet, as none of it is official? They can't introduce someone to a house they haven't contractually agreed to market?
fido said:
They have already found a buyer and i may have an offer as soon as next week.
Have you had a viewing and offer made? If not, they have found someone who might want to look at your place, that's a totally different matter to a "buyer"....In any event, did you not ask them their fees before seeking to instruct them?
Ok, it's been agreed at 1%. Buyers need their father to give his blessing (?!) before proceeding, so i have about 24hr to say 'yeah' or 'naeh'. Which leaves me with two possible problems. 2-bed flats are not exactly cheap to rent. How does one prune all stuff down to 2 bedrooms .. guess the garage stuff can go into storage. 
Where are you? Only ask because in my neck of the woods (Somerset) it's not much more expensive to rent a house over a flat. We pay £775 for a pretty big 3 bed house with garage etc, whereas you'll pay about £650 for a decent flat. Means you wouldn't have to thin your stuff out or store any of it elsewhere. Just a thought.
It's not that much more expensive to rent a house than a flat (relatively) in my bit of SW London/Surrey, and yes, i could chuck all the bulky stuff in the garage. Got the end of today to consider the offer .. else a bottle of champagne to the EA for their time. Think i'll stay put as a (real) bird in the hand is worth two (pecuniary ones) in the bush.
Jasandjules said:
fido said:
They have already found a buyer and i may have an offer as soon as next week.
Have you had a viewing and offer made? If not, they have found someone who might want to look at your place, that's a totally different matter to a "buyer"....In any event, did you not ask them their fees before seeking to instruct them?
A buyer is someone in a position to move ie sold there property or having cash/mortgage. Anyone else is just wetting your leg and wasting everyones time if they come round as they are in no position to do anything.
boy said: A buyer is someone in a position to move ie sold there property or having cash/mortgage.
They had a 25% deposit and ready to move - though it does worry me that people consider this to be a large deposit - but that's another thread. Unfortunately, i couldn't get the next place. -1 Bottle of Veuve Clicquot.
boy said: Dont be frightened to haggle over the fees.
You should try to negotiate as much as you can. Some agents will grumble at haggling the fee, my last place worked out at a fraction over 1% from their usual rate of 2%.
I think if the fee is too low some agents won't be as motivated to sell, although another way of looking at it is there may be a great agent with a flat low fee, they have no choice but to be motivated to shift them or else they'll go broke.
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