Auctioneer did not tell me about potentially higher bidder

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runner

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Have had a property for sale for a couple of months with leading EA in Dublin.
Viewings, offers etc ensued and following advice by their branch representative handling the sale, we verbally accepted an offer from a cash buyer this week. This was on the understanding that all other parties had been eliminated, or had not stayed in the race.

Tonight a couple called to my house and expressed surprise that the EA had been so hasty in going sale agreed when they had intimated to them that they wanted to get an offer in, but had been kind of ignored, not taken seriously or whatever, and not advised that a final offer for closing the sale was on the table. They immediately offered 10K more than the sale agreed price.
They say they have full bank approval for the total costs involved with 100K savings of their own. I believe they can buy the property, even in the current restricted financial market, both being in corporate jobs with good salaries.

I have two problems, namely what to do next regarding the offer and what I should do re the EA's performance.

Should I continue the discussion with the new people informally myself and get them to verify their offer with an explicit bank confirmation of their funding in writing and just sit on the sale agreed offer in the meantime saying nothing for the moment to the EA or their client.

Then if this offer is fully validated, go to the EA for an explanation of their reasons and their handling of the sale process and tell them I have sold it myself. I do not suspect any malice just laziness and negligence. In these circumstances, should I even pay the EA's fees, but this is not a contention as the sale enquiry was the result of their promotion.

I assume I am under no obligation to proceed with their sale agreed client who has paid them a deposit, and that I can sell it myself even though I will probably have contractual obligations to pay them their fee.

Greatly appreciate any constructive advice asap.
 
You can definitely go ahead with the sale to the couple. I would ask the EA in person what happened. You'll probably get some spiel about how they didn't think they really could complete and the cash buyer was better as they'll complete quicker.
 
runner said:
Have had a property for sale for a couple of months with leading EA in Dublin.
Viewings, offers etc ensued and following advice by their branch representative handling the sale, we verbally accepted an offer from a cash buyer this week. This was on the understanding that all other parties had been eliminated, or had not stayed in the race.

Tonight a couple called to my house and expressed surprise that the EA had been so hasty in going sale agreed when they had intimated to them that they wanted to get an offer in, but had been kind of ignored, not taken seriously or whatever, and not advised that a final offer for closing the sale was on the table. They immediately offered 10K more than the sale agreed price.
They say they have full bank approval for the total costs involved with 100K savings of their own. I believe they can buy the property, even in the current restricted financial market, both being in corporate jobs with good salaries.

I have two problems, namely what to do next regarding the offer and what I should do re the EA's performance.

Should I continue the discussion with the new people informally myself and get them to verify their offer with an explicit bank confirmation of their funding in writing and just sit on the sale agreed offer in the meantime saying nothing for the moment to the EA or their client.

Then if this offer is fully validated, go to the EA for an explanation of their reasons and their handling of the sale process and tell them I have sold it myself. I do not suspect any malice just laziness and negligence. In these circumstances, should I even pay the EA's fees, but this is not a contention as the sale enquiry was the result of their promotion.

I assume I am under no obligation to proceed with their sale agreed client who has paid them a deposit, and that I can sell it myself even though I will probably have contractual obligations to pay them their fee.

Greatly appreciate any constructive advice asap.
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By your own writings you state that they intimated, that's not a bid, if EA went with every intimation or gut feeling you'd never close a sale. Even your title is "potentially", take the bid and ask the EA about this couple. Pass it straight onto your EA, don't waste time yourself in dealing with the couple.
 
Don't assume anything, just call the EA and set up a meeting. Then outline everything you know and ask for an explanation. If you look for comment here about what could have happened, you're only goin to get a run down on how devious EA's are, but what really matters is that it is your house and you have hired the services of the EA, so the last call on everything comes from you.
Until you sign a contract, you are still calling the shots.
 
Thanks all comments so far.
In essence I suppose it boils down to whether I should explore the new bidders capacity to deliver on the offer, or just pass it on to the EA and ask them to deal with it. Yes I do intend to confront the EA for an explanation early next week as this is only one side of the story. Alternatively, I could examine the bid for a few days and see if they can back it up with substance, and decide then whether it warrants passing on to the EA. I am very cautious here since i have a cash offer agreed by the EA with the money immediately available so definitely do not want to compromise that.
And as MrMan says , I don't want this thread to turn into an EA bashing either.
 
runner said:
Thanks all comments so far.
In essence I suppose it boils down to whether I should explore the new bidders capacity to deliver on the offer, or just pass it on to the EA and ask them to deal with it. Yes I do intend to confront the EA for an explanation early next week as this is only one side of the story. Alternatively, I could examine the bid for a few days and see if they can back it up with substance, and decide then whether it warrants passing on to the EA. I am very cautious here since i have a cash offer agreed by the EA with the money immediately available so definitely do not want to compromise that.
And as MrMan says , I don't want this thread to turn into an EA bashing either.
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Why "confront"? I'm really confused about what you might do with this bid, why not just pass it on to the Estate Agent, what are you gaining from not doing so? You're paying the EA, let them do the work.
 
Perhaps 'confront' is too strong - maybe discuss it then Derek.
There is no reason not to pass it on to EA, just sounding out opinions here as it is a discussions forum. Its just a matter of timing, do I do it now, or check the other bid out a bit first before I pass it on. thanks.
 
Even though they may not realize it they're simply trying to gazump the other buyer. Buying a house in Ireland is tiresome and unpleasant enough without people stepping outside the normal process. The EAs will be used to this sort of thing happening and will try to steer you away from the them. They had their chance, they missed it and want to blame the EA instead of themselves.

Bidding has to end for a house at some time and it's only natural that the fact that bidding has closed triggers regret for some. It's also much easier to see with the benefit of hindsight that a price was reasonable than when there's an active bidding process.

It's not the EA who decides to go sale agreed, it's the vendor. Clearly the EA will say when would be a good time but if a vendor wants to hang on for months or years the EA can't do anything except get more and more grouchy.

I'd also suspect that gazumpers are also likely to be the kind of buyers who just before signing contracts try to get money off by gazundering due to an engineers report or whatever.
 
runner said:
No Jim. Your opinion is to pass it on straight then, I gather?
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Well back in the 80s I spent a summer working for an auctioneer and the one thing I learned is that people play all sorts of games when there is big money on the table and they want to get into or out of a deal. You're paying a professional to deal with this kind of crap so let him get on with it.
 
From feedback so far, my inclination is to just pass the offer on, or ask the new couple to submit their offer to the EA in writing asap. I will advise the EA that they should assess the offer in the usual manner and not regard the sale agreed as closed. The EA comes across as a competent individual who may have thought that this couple were not genuine runners for the property, but that they now need to be re-appraised.
 
Just to pay devil advocate (not EA bashing) the 'cash bid' could be related or connected to the EA.

Ring or call into the EA, tell them what happened and take it for there. He could well be on the level and excluded the couple who came to you for a perfectly valid reason.
 
Yes, I do not believe there is conspiracy or malpractice. It may be that he excluded them on sound commercial grounds, and hence did not wait for an offer. Anyway, he is back in on Monday and will discuss it rationally with him then.
 
I would also get your solicitor to contact their solicitor to get confirmation that their client is in funds to complete on the house.
Make sure they do have full mortgage approval not just approval in principle as the two can be different things as the banks can reduce their offers when all the documents are submitted.
Why were these bidders not jumping in with offers when the bidding was going on? Do these new bidders have a place to sell or what is their situation.
 
Update:
I asked the second party to submit their bid in writing to the EA, and the EA have now contacted me as a result, and he will review and stress test the financial aspects of it asap. I didn't have to contact the EA and will leave it to them to evaluate. I am happy to accept his side of the story in good faith. thanks to all who replied here. Will post update again in due course.
 
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