Making offer direct to vendor

Q

Qbot

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Hi, just wondering if anyone has ever done this. I have made an offer on a property through an EA. Is there anything stopping me going directly to the Vendor and making an offer to them directly. I do have several reasons for this which I would prefer not to list.. I do know the vendors had this property on the market themselves late last year, they since dropped the price having got the EA to manage the sale. Any advise would be appreciated. thx
 
Hi there,

I can't see any problem in going direct to the vendor - so long at the end of the day the EA get's their fee as agreed. That said if you are going to give the vendors their asking price - if you're going to low ball it you are probably better go through the EA after all that is what they are paid for.
 
Thanks for your reply. I am offering below the asking price but have had a couple of professionals to look at the property and they all feel what I am offering is appropriate. My thing is, I dont think there is genuinely someone offering against me, eventhough the EA tells me there is. I have a few reasons to beleive this. Therefore, if I went to the vendor directly, and since they had it on the market themselves last year, then I could make them an offer privately... and not get them to pay the EA fees. I know this isnt polictially correct... but...
 
No matter if you offer direct to vendor, it is unlikely that the vendor will avoid paying the EA.
 
Really? I would of thought if the vendor sold it privately without EA, then they wouldnt be liable to any charges by the EA - except for the usual advertisting etc...
 
Qbot said:
Really? I would of thought if the vendor sold it privately without EA, then they wouldnt be liable to any charges by the EA - except for the usual advertisting etc...
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The contract to sell, assuming the standard one is in use here, is pretty watertight, so the EA gets paid no matter how the sale is agreed.

IME, it is good practice to inform the vendor of details of your offer as soon as possible after making it. It can have some surprising results.
 
Qbot - if you do what you are proposing, you will p##s the EA off so much that he will suggest to the vendor not to sell it to you and probably get one of his mates or themselves to purchase at €500 more just to annoy you. In case you haven't noticed, we've all moved on from Irish business 1970s style, and i am no lover of EAs,
 
I know this isnt polictially correct... but...
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Thats a nice way of putting it rather than I know its screwing them over but....

If you believe that the EA is faking a bid then don't bid any higher than you have already. It will either sell to someone else or sit on the market. You might also want to consider that if the owner thinks there is someone else interested they are not going to sell to you privately on the cheap.
 
mathepac said:
The contract to sell, assuming the standard one is in use here, is pretty watertight, so the EA gets paid no matter how the sale is agreed.

IME, it is good practice to inform the vendor of details of your offer as soon as possible after making it. It can have some surprising results.
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yeah, I think its stated on most EA contracts that they're entitled to receive the fees if they introduced you to the seller.
 
If the EA has his sign outside the property - this is an introduction so whether the EA physically introduces a buyer or not - once the sign is outside and there is a contract between the EA and the vendor then the EA will want to get paid.
 
Thanks all for your responses.. guess the vendor has to pay the EA no matter what. Might just stick with the EA for the moment and see what the outcome is. Is there ever chances that the EA puts in phantom offers? (this is my main reason for wanting to make direct offer to vendor)
 
Of course there is a chance of phantom bids. If you are appearing quite keen, it is a strong likihood that this is occuring. What you could do is write to the vendor and copying to the EA, marking down your bid, a fixed time frame for acceptance and also if you are a cash buyer so no chain would exist (if these are the circumstances).
 
I did make the stupid mistake of seeming very very keen on the property to the EA.. just wasnt thinking.. now I think he is messing me around. Its amazing how a property had little or no interest in 3 months and all of a sudden I put an offer on and potenital buyers are coming out of the woodwork!
 
Its amazing how a property had little or no interest in 3 months and all of a sudden I put an offer on and potenital buyers are coming out of the woodwork!
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It could be the case that you are being messed about, but you would actually be amazed at how many people sit on the fence until the first offer is made.
 
Note that buyers sometime request to be notified if an offer goes in on a house....so maybe the buyers aren't coming out of the woodwork but were there all along.

Over the last year I have encountered both scenarios. One where it became painfully obvious that the other bidder was 'phantom' and another situation when we were convinced that the other bidder was phantom and then they ended up going sale agreed with the other bidder. It's really hard to tell. Personally I would ask the EA more questions about the other bidder, who they are, have they sold up, are they cash ready, approved by bank etc. The longer you can engage the EA in converstaion you might get a better feel for whether they exist or not.

Good luck!
 
don't worry about appearing interested, it doesn't automatically mean you have deep pockets but you do look more likely to complete a sale which is a plus. Tell the e.a. your budget is very tight, banks stricter lending etc. you can always say you got help from family or something if you want to up your offer at a later stage.
 
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