Flat sold for 40k less than advertised. Wrongdoing by agent?
Discussion
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.
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.
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.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).
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.
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.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.
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.Wasting asset with less than 85 years lease remaining?
hyphen said:
If a seller is looking for a quick sale, or isn't the brightest then anything undertaken value will perhpas go to a favoured party, but otherwise will be sold as normal.
I.e. a minority of dodgy sales, rather than the majority as you are implying.
OP- Estate agent appears to have dissuaded you. If you has made a bid in writing then something to talk about. But as no bid was out in and verbal, nothing to challenge in law unfortunately.
Thanks, I agree, I simply didn't try hard enough. On the basis of what was said when I rang, I couldn't see the point. I only thought about it again when I saw what it had sold for.I.e. a minority of dodgy sales, rather than the majority as you are implying.
OP- Estate agent appears to have dissuaded you. If you has made a bid in writing then something to talk about. But as no bid was out in and verbal, nothing to challenge in law unfortunately.
PhilboSE said:
Based on the information provided, it sounds like:
- the property was advertised @ £125k
- lots of interest
- OP makes contact
- EA has at least 9 interested parties on the books at this point, maybe some competing offers going in
- EA decides that there's at least 1 buyer out of the existing candidates and decides he can't be bothered with another punter showing interest who isn't as far down the process (not viewed, not registered with EA, etc.)
- EA tells punter a story to put him off and save himself some time & effort
- house sells at 5% over guide, EA banks commission and goes home and has a w
k.
Looks like this, based on the conversation I've just had today with the selling agent. I spoke to a newish employee who had no prior knowledge of the sale, and ventured the information that the flat had indeed been marketed at offers over 125k. This is what was in the advert. I was told offers over 170 when I pursued it in person, which would suggest the above scenario is possibly accurate.- the property was advertised @ £125k
- lots of interest
- OP makes contact
- EA has at least 9 interested parties on the books at this point, maybe some competing offers going in
- EA decides that there's at least 1 buyer out of the existing candidates and decides he can't be bothered with another punter showing interest who isn't as far down the process (not viewed, not registered with EA, etc.)
- EA tells punter a story to put him off and save himself some time & effort
- house sells at 5% over guide, EA banks commission and goes home and has a w
k.The flat has been unoccupied since the sale, I've asked the agent if they might contact the owner and I'll give him a profit on it.
[quote=Cliffe60
You didn’t put an offer in, so why are you complaining ?
If that's directed at me, I'm not complaining, I'm asking a question, as the thread title indicates. I'm not wholly cognisant with the possibilities of what an estate agent is or isn't capable of, should they choose to turn something to their own advantage. I hoped to find out more, possibly for future reference should the opportunity arise again, and some of the answers on the thread have been enlightening.
If I were to complain, it would be based on the fact that the answer I received from the EA when enquiring in person seemed designed to, and indeed did deter me from pursuing, which would not have happened if they had been more honest at that point in the proceedings.
But you already know that, because I've already said so earlier in the thread.
You didn’t put an offer in, so why are you complaining ?
If that's directed at me, I'm not complaining, I'm asking a question, as the thread title indicates. I'm not wholly cognisant with the possibilities of what an estate agent is or isn't capable of, should they choose to turn something to their own advantage. I hoped to find out more, possibly for future reference should the opportunity arise again, and some of the answers on the thread have been enlightening.
If I were to complain, it would be based on the fact that the answer I received from the EA when enquiring in person seemed designed to, and indeed did deter me from pursuing, which would not have happened if they had been more honest at that point in the proceedings.
But you already know that, because I've already said so earlier in the thread.
Pit Pony said:
My advice to my son, was "who cares if the agent says they've had 26 offers at twice the asking price. Make an offer in writing at what you would pay. You have no chain, and can move as fast as thier solicitor"
He's just moved into his (thier) new house with the woman he marries on Saturday.
Not the house he was discussing, but he said that paricular agent only atarted to take him seriously once he had made one reasonable offer, even if it wasn't accepted.
Good advice. I should have done just that.He's just moved into his (thier) new house with the woman he marries on Saturday.
Not the house he was discussing, but he said that paricular agent only atarted to take him seriously once he had made one reasonable offer, even if it wasn't accepted.
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.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.
Gassing Station | Speed, Plod & the Law | Top of Page | What's New | My Stuff