Bidding on Property

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fernrock

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Is it legal for an estate agent to refuse to pass on a bid to a seller when the advertised price has been offered even when proof of funds are supplied.
 
It's common practice here for property to be listed with an asking price lower than what the vendor hopes to achieve. Especially at the moment when almost everything is selling for above asking and in some cases considerably more.

I know the UK legislation is clear that agents must pass on offers, but I don't think the Irish legislation is as clear cut. There is a line in the Code of Practice here, but is that enforceable? Regardless, it all comes down to the vendors instruction. If the vendor isn't interested in offers that are less than 20k over asking, there is no obligation whatsoever on the agent to pass them on. If the agent doesn't believe you are a genuine bidder or are not in a position to close in line with the vendors expectations.
 
I've had an issue in the past where an EA accepted a number of bits from me on a house, but told me he would not accept my last bid as I was in a chain (my old house was Sale Agreed) and he would only accept bids from FTB's or cash buyers. So basically he used me to gazump the other bidders, then dumped me. His excuse at the time was that the house was in probate, there was a Fair Deal's bill to be settled and the seller wanted a quick sale.
 
I have since discovered that the property had been sale agreed but, fell through at the last moment . The agreed price was 20000 above the asking. The property has not actually been re advertised but the "Sale Agreed" has been removed from the add . So it looks like as if the EA is trying to save face with the seller.
 
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fernrock said:
I have since discovered that the property had been sale agreed but, fell through at the last moment . The agreed price was 20000 above the asking. The property has not actually been re advertised but the "Sale Agreed" has been removed from the add . So it looks like as if the EA is trying to save face with the seller.
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I'd imagine the EA are really just trying to do their job, which is to get the best price possible for their client, bearing the client's instructions in mind relating to speed of sale, avoiding chains, preferring cash buyers over mortgage approved buyers that might hit Covid issues, etc.. Remember, an extra 20k means very little to the agent, they make their money on volume, keeping a house on the market for another few weeks for the sake of an additional 2-300 on the fee would cost them money.

Refusing offers from buyers in chains is nothing new. It is VERY difficult to line up all the prerequisites to have a chain close out smoothly, so most vendors don't want the hassle or delays.
 
MelF said:
Apparently according to their own code of conduct, they must pass on all bids but they often don't.
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Link to the Code of Practice here. Note the use of 'shall' in relation to passing on offers versus the use of 'must' for elements they are compelled to follow.
 
Leo said:
I'd imagine the EA are really just trying to do their job, which is to get the best price possible for their client, bearing the client's instructions in mind relating to speed of sale, avoiding chains, preferring cash buyers over mortgage approved buyers that might hit Covid issues, etc.. Remember, an extra 20k means very little to the agent, they make their money on volume, keeping a house on the market for another few weeks for the sake of an additional 2-300 on the fee would cost them money.

Refusing offers from buyers in chains is nothing new. It is VERY difficult to line up all the prerequisites to have a chain close out smoothly, so most vendors don't want the hassle or delays.
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There is no chain involved. The person making the offer had bid previously and was out bid by 10,000.
They were contacted by the EA and told of the failure of the sale . As there were no other underbidders or offers , they figured it was now a new ball game so they offered the advertised price.
While the bidder figured it would not be accepted immediately by the seller.
Having already submitted proof of funds to the EA. for the EA not to even offer it to the seller seems wrong.
 
fernrock said:
Having already submitted proof of funds to the EA. for the EA not to even offer it to the seller seems wrong.
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It is most likely that the seller has instructed the agent not to accept any offers less than X. As above, the agent doesn't really care too much about another 10k on the price, they want it sold and quickly.
 
Leo said:
Link to the Code of Practice here. Note the use of 'shall' in relation to passing on offers versus the use of 'must' for elements they are compelled to follow.
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Makes sense. An EA must surely be given the discretion to refuse to pass on a bid that she knows is spurious or insincere.
 
NoRegretsCoyote said:
Makes sense. An EA must surely be given the discretion to refuse to pass on a bid that she knows is spurious or insincere.
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I was bidding on a house and the EA operated first past the post i.e. they would not accept my matching offer and requested it had to be a higher offer. I was slightly peeved as I thought the EA should have taken my matching offer back to the other clients or if neither wanted to bid more then take the offers to the vendor and let them decide.

I realized it was futile so I just upped my bid.
 
NoRegretsCoyote said:
Makes sense. An EA must surely be given the discretion to refuse to pass on a bid that she knows is spurious or insincere.
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Absolutely, if you were selling a house and told the agent you didn't want to deal with anyone in a chain, or didn't want to consider bids below X, I'd imagine you'd be annoyed if they were phoning you repeatedly ignoring those instructions. The agent works for, and is instructed by the vendor, as a result the customer isn't always right.
 
Leo said:
Absolutely, if you were selling a house and told the agent you didn't want to deal with anyone in a chain, or didn't want to consider bids below X, I'd imagine you'd be annoyed if they were phoning you repeatedly ignoring those instructions. The agent works for, and is instructed by the vendor, as a result the customer isn't always right.
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Totally. Sellers at the high end in particular would want an EA to have a good feel for how serious a bidder is and to rule out obvious chancers. Rich people generally don't have much time they want wasted.
 
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