Can I bypass the auctioneer and offer direct to vendor?

staff

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I bought a house back in 1999 and while I was viewing it I spotted a piece of post and it transpired that I knew the girl who was selling it. I contacted her directly and she was prepared to drop the price as it meant that it cut out the EA fees and she still got what she wanted and that I didn't get into a bidding war.
 

mf1

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I bought a house back in 1999 and while I was viewing it I spotted a piece of post and it transpired that I knew the girl who was selling it. I contacted her directly and she was prepared to drop the price as it meant that it cut out the EA fees and she still got what she wanted and that I didn't get into a bidding war.
Which bit of "if you employ an estate agent, you have to pay their fees when the house sells" do people not get?

The only times a vendor should not pay the EA's fees is (a) when no EA was employed to sell the property and (b) when, if an EA was employed, the property has been taken off the market and there is absolutely no connection between the EA and any subsequent sale of the property.

I'm all in favour of getting a good deal but this carry on isn't just naive, it is mean, thieving and underhand. And it is not justified by the "they are all shysters" argument.

mf
 

mf1

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Do you, by any chance, disapprove of it?

[You could have added "actionable".]
Moi? Disapproving? As if!

And if I said it was actionable, you know that some bright spark would come up with the answer : "But, sure, who'll ever know/find out?"

And then I really would get cross!

mf
 

mayoman2

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I don't know what world ye guys are living in but cash is not flying around the whole crash. Everybody want a cheaper house now and if that means stiffing a EA, it will and is happening. I would say over the last 10 years the EAs have stiffed alot of buyers, but they were just one part of the pie. I have been on both sides, but it was only when I was selling I seen the light and what the EA was telling me. I am not saying I did or didn't take the righteous path - I just played the game!! Back then the seller was king, but the tide has changed and if the potential buyer wants to go to the seller directly, why not. It's their choice!! The seller can only say "game on" or "go to the EA". It is the problem of the seller to deal with the EA and fees and what way he wants to run the sale if its agreed etc, so why should the potential buyer give a fiddle.
 

mf1

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I don't know what world ye guys are living in but cash is not flying around the whole crash. Everybody want a cheaper house now and if that means stiffing a EA, it will and is happening. I would say over the last 10 years the EAs have stiffed alot of buyers, but they were just one part of the pie. I have been on both sides, but it was only when I was selling I seen the light and what the EA was telling me. I am not saying I did or didn't take the righteous path - I just played the game!! Back then the seller was king, but the tide has changed and if the potential buyer wants to go to the seller directly, why not. It's their choice!! The seller can only say "game on" or "go to the EA". It is the problem of the seller to deal with the EA and fees and what way he wants to run the sale if its agreed etc, so why should the potential buyer give a fiddle.
This is a profoundly depressing post. Do whatever it takes to get whatever you want at any cost and leave principles, standards and rules to the mugs.

mf
 

mayoman2

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This is a profoundly depressing post. Do whatever it takes to get whatever you want at any cost and leave principles, standards and rules to the mugs.

mf
What the hell has happening over the last 10 years with all this regulation, not a damn thing. I am just saying what alot of people are thinking because they are fed up with Fat cats like EA, these guys are not even regulated so there are no rules, no standards and who were the mugs the last 10 years. so why should a buyer care now that they are getting the squeezers. BTW, you are off the point anyway, poster was asking could they go directly to buyer and I say WTFN
 

JohnOB

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My experience of EA's would concur with mayoman2's view:

askaboutmoney.com/showthread.php?p=982612#post982612

(I can't post active links yet .... you'll have to copy and paste .... sorry)
 

mf1

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The original post.

"Would it be possible / legal / smart to make an offer to the house owner instead, bypassing the EA?"

"BTW, you are off the point anyway, poster was asking could they go directly to buyer and I say WTFN"

And a lot of posters gave all the reasons why not.


"What the hell has happening over the last 10 years with all this regulation, not a damn thing. I am just saying what alot of people are thinking because they are fed up with Fat cats like EA, these guys are not even regulated so there are no rules, no standards and who were the mugs the last 10 years. so why should a buyer care now that they are getting the squeezers. "

Which bit of : "if you employ someone, you should pay them" do you not get?
In your own line of work, how would you feel if you were not paid for work you had done?

Because that is what this is all about. Not squeaking about EA's being shysters to justify a dishonest stance.

mf
 

MrMan

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I don't know what world ye guys are living in but cash is not flying around the whole crash. Everybody want a cheaper house now and if that means stiffing a EA, it will and is happening. I would say over the last 10 years the EAs have stiffed alot of buyers, but they were just one part of the pie. I have been on both sides, but it was only when I was selling I seen the light and what the EA was telling me. I am not saying I did or didn't take the righteous path - I just played the game!! Back then the seller was king, but the tide has changed and if the potential buyer wants to go to the seller directly, why not. It's their choice!! The seller can only say "game on" or "go to the EA". It is the problem of the seller to deal with the EA and fees and what way he wants to run the sale if its agreed etc, so why should the potential buyer give a fiddle.
Even though this post seems like a poor mans version of a script for The Wire, it does at least highlight the fact that if you want to screw people over its ok as long as you can make some vague attempt at justifying it. To be honest if I had to deal with someone that had your attitude, I would be very reluctant to deal directly with you because if you think its ok to screw someone out of their cash for your benefit well then exactly how smooth is the transaction going to go?
 

mayoman2

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Even though this post seems like a poor mans version of a script for The Wire, it does at least highlight the fact that if you want to screw people over its ok as long as you can make some vague attempt at justifying it. To be honest if I had to deal with someone that had your attitude, I would be very reluctant to deal directly with you because if you think its ok to screw someone out of their cash for your benefit well then exactly how smooth is the transaction going to go?

Firstly you guys are looking from the point of view of the Seller. The potential buyer has no contract with the seller's EA so why would he give a fiddlers, who he speaks to or goes through to purchase a house. I am not on about screwing anybody. That was someone else that said that. It’s a right of the potential buyer to offer his bid to the seller if he/she wishes, equally the seller's right to accept or refuse the bid. I do not understand why you guys/girls don't get this! Just because a EA is assigned does not mean every bid has to go through him/her. The contract with the EA is with the seller. I don't know how to make this any simpler so you can get it. I think you guys should listen to a bit of RATM "f... you i won't do what I told ya" and free your mind.

I have no motive, just giving my opinion as an experienced man who sold and bought a house and I feel you guys/girls have, but thats for another day. Attitude is now been replace with an opinion because I am expressing it. What if I knocked on the seller's doors, said "Hi my name is chris Cornell and I would like to see your house for sale as I am very interested in offering your a bid. I have cash and I am mortgage approved. Are you interested?"
So i would get a "Come in nice man" or "please contact the EA"

I doubt anyone would say "oh i don't like your attitude" and that's why I say WTFN

 

MrMan

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The seller uses an EA because they wish to have the sale operate through the office of the EA. They don't want to have people arriving unannounced on their doorstep even with offers of cash. In theory it sounds great to have someone walk up and offer you cash for your home, but how do you know they are offering enough? Would it be intimidating for a seller to have someone sit in their kitchen and tell them why their house is worth less than they are asking? People like to keep a distance because it offers a greater freedom when making the decision. It only benefits the buyer in my eyes because if the buyer is bold enough to make the approach they are most likely goin to be bolder in terms of negotiation aswell 'take it or leave it' etc.

This is a persons home so letting random strangers snoop around unannounced would seem foolish and also leave you open to dodgy people.
 

mayoman2

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The seller uses an EA because they wish to have the sale operate through the office of the EA. They don't want to have people arriving unannounced on their doorstep even with offers of cash. In theory it sounds great to have someone walk up and offer you cash for your home, but how do you know they are offering enough? Would it be intimidating for a seller to have someone sit in their kitchen and tell them why their house is worth less than they are asking? People like to keep a distance because it offers a greater freedom when making the decision. It only benefits the buyer in my eyes because if the buyer is bold enough to make the approach they are most likely goin to be bolder in terms of negotiation aswell 'take it or leave it' etc.

This is a persons home so letting random strangers snoop around unannounced would seem foolish and also leave you open to dodgy people.

If the house is for sale, more than likely people are snooping as you say with the EA. I would be happier someone snoop with me (the seller) than the EA. But again back to op question, the seller has a choice "game on" or "go to EA", so go for it op.

The house is only worth what someone is going to pay for it and if this is 50k less, this is the value. Money is not out there now and if the seller takes your opinion, could potentially not sell. You make out the seller to be a fool, easly intimidate and will get dodgy people.

Take a look at sites like 'sell it yourself' or similiar - these must be people shivering with intimidaion - complete nonsense!
 

MrMan

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If the house is for sale, more than likely people are snooping as you say with the EA. I would be happier someone snoop with me (the seller) than the EA. But again back to op question, the seller has a choice "game on" or "go to EA", so go for it op.

The house is only worth what someone is going to pay for it and if this is 50k less, this is the value. Money is not out there now and if the seller takes your opinion, could potentially not sell. You make out the seller to be a fool, easly intimidate and will get dodgy people.

Take a look at sites like 'sell it yourself' or similiar - these must be people shivering with intimidaion - complete nonsense!
there is a difference with someone calling an EA and making an appointment and someone juast knocking on your door unannounced. There is a chance for the EA to vett prospective viewers and even recognise time wasters. The EA will accompany the viewer who in turn can relax when viewing as they won't upset anyone with negative comments.
The house is only worth what someone will pay for it, but would you not rather exhaust every option to find that value? A take it or leave it offer on your doorstep is only going to favour the buyer.

Potentially of course the seller may not sell, but are you saying that any offer is better than no offer? When we deal in real terms and with issues like outstanding mortgages and the cost of the transaction then people do have to consider what they are willing to accept and whether or not they should engage a person that is experienced in the business of selling homes (your most expensive asset).

I didn't say that sellers were fools etc my point is that keeping a distance between the buyer and seller can leave room for a clear thought process devoid of in your face negotiation. When the EA acts as a buffer he can offer advice and just lay out the facts for consideration.
Certain characters are better at negotiations and can put spin on things and try and convince you to take an offer, do you want that in your kitchen?
As for dodgy people, well we all are aware that they are out there but if you organise a viewing through the EA you will have contact details etc for everyone that has entered your home, but if I kknock on your door and say I'm only in town for the next hour before I leave on business would you 'dance to my tune' even though you don't know who I am or how to contact me later?

As for the site you mention, I don't think it can be held up as a beacon for success.
 
B

bill.murphy

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What an interesting point guys. Thank you so much for taking all part in the conversation.

I understand exactly EA's reason and why would a buyer would go with them.

But still, probably it's them that sign a contract (if they do, likely), not me.

So, after reading those answers, what I guess is:

- If I contact the EA for the house, then the seller HAS TO go with through the EA if I do buy the house
- If I ring the bell of the seller directly, and kindly ask if they were about to evaluate an EA-free process, in the worst case scenario they would tell me they wouldn't and give me their EA's business card

I think I am in the best position now as a buyer, with mortgage approval and as first-time buyer and occupier, but I think that, having viewed already few houses that I liked, I can't go to the relative sellers directly.

But I may try for new ones - right?

The real reason why I want to do this, is to avoid wasting money in EA's commission. But, in the price range I'm searching for (250/300), their commission may be around 3/8k, and maybe an EA may help me deal a better price with the seller and save even more.... what do you think?
 

pascal12

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go directly to the owner sometimes the EA has a prefered buyer who is also selling another house.

sellers should consider before giving sole selling rights to EA's

The voice of experience
 

mf1

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go directly to the owner sometimes the EA has a prefered buyer who is also selling another house.

sellers should consider before giving sole selling rights to EA's

The voice of experience
Nonsense and pinch of salt.

mf
 

MrMan

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I sold a house recently got more than the EA said he could get



eat my hat!
Well done and even though we have to take your word for it the EA could have gotten more, you never can tell until its actually on the market and the water has been tested.
 
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