Sale agreed estate agent asking for more

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comanche

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Went sale agreed on a property yesterday, had offered 318500. The estate agent came back and said the the seller would accept 317500 with 2500 contents. I agreed provided the take the house off the market.

The EA came back this morning looking for 322000 saying that I should split the difference in the stamp duty. I said no. He apparently put the back to the seller. Phone call back saying the the selling wasn't accepting that seeing as I was prepared to pay stamp duty and now he is saving me this money. I stupidly offered 321000, estate agent came back saying that the seller wasn't accepting that, so I said it was my final offer.

Any opinions/advise.

Thanks.
 
How do you mean split the difference in Stamp Duty?? Surely that would leave the seller in the same position as if they sold to you at the SD limit?

How many other bidders were there? I'd be tempted to go back to your original 317500 and stick at that.
 
sun_sparks said:
How do you mean split the difference in Stamp Duty?? Surely that would leave the seller in the same position as if they sold to you at the SD limit?

How many other bidders were there? I'd be tempted to go back to your original 317500 and stick at that.
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For my offer of 318500 I would be liable for 10k in stamp duty. He wants me to pay 5k for contents and save my self 5k. I was that I would pay 2.5k for contents. He is squeezing me for 2.5k for no reason.
 
I don't understand this either. If you originally agreed €317,500 plus €2,500 for contents, you were in the 3 or 6% stamp duty range, depending on whether you are a FTB or not. If it was €317,500 including contents of €2,500 you were either exempt from SD or in the 5% range. So how could the seller be looking for more money on the basis of saving you money on stamp duty?
 
Vanilla said:
I don't understand this either. If you originally agreed €317,500 plus €2,500 for contents, you were in the 3 or 6% stamp duty range, depending on whether you are a FTB or not. If it was €317,500 including contents of €2,500 you were either exempt from SD or in the 5% range. So how could the seller be looking for more money on the basis of saving you money on stamp duty?
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Well what the estate agent, his client and his solicitor are offering is illegal but common enough practise from what I understand.
 
I'm not being smart here but it is hard to understand your point because your grammar is so poor. Can you please clarify the situation for us so that we can advise?
 
This estate agent sounds like a messer to me. I wouldn't do business with him.

In relation to what price to pay for a house I advise choosing a price you are willing to pay before getting in to a bidding war and only going as far as that price. How much do you think the house is worth and you are willing to pay. Put in this offer and then leave it.
 
Well what the estate agent, his client and his solicitor are offering is illegal but common enough practise from what I understand.
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Oh I see, so in reality what they are asking you to do is to pretend that you are paying €317,500 or less for the house and more in cash. This is defrauding the revenue. I wouldn't touch this with a bargepole.
 
They really have some cheek!! Is the vendor actually going to leave any contents for this additional money?
My brother-in-law who is a FTB recently wented sale agreed on a house - he was at the 381 limit and they would not close with him until he offered 4K cash for contents - the estate agent held out a week waiting for him to agree and continued showing the house. Eventually my bro-in-law agreed - even though no other offers where put on the house - he just felt he had no other option as he wanted the house. If you really want the house maybe pay the 321 but on principle you should try to avoid going to 322.
 
I would get a mate to ring first thing in the morning, view the place and put in a higher offer. He gets the house as you only offer 317 but you are really nice about it. You pay the deposit for him and when it comes to the closing of the contracts he pulls out. Then auctioneer comes back to you and you get it for 317. The time frame is crucial. If you really want the house though, pay it.
 
Refused to budge yesterday - estate agent offered the house for 317500 with 4500 contents to origional interested party. They took it.
 
Honestly comanche, while I know you're gutted right now, it wasn't meant to be. You offered 321,000 so they were just messing you around.

The house of your dreams is just around the corner.
 
This all sounds v. illegal to me !! and anyone involved could be in serious trouble with revenue. Could you report the estate agent and/or solicitor involved on this?
 
dubinamerica said:
This all sounds v. illegal to me !! and anyone involved could be in serious trouble with revenue. Could you report the estate agent and/or solicitor involved on this?
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I absolutely agree with this, please notify the relevant authorities of this (it's such a shame how estate agents are unregulated in this backward country..) quoting both the estate agent and the vendor.

Just in case you think you're being a 'rat' or something, consider the fact that you just lost out on a house because you refused to break the law, you (and any other buyer in this situation) should not let this stand.
 
It is illegal but its common practise - the estate agent is quiet a large 'reputable' estate agent.

Ratting them out is not going to get me anywhere - I still need to buy and may have to end up dealing with the same estate agent if I am unlucky.

In the end it was down to vendor greed, the git didn't even have the property listed on myhome.ie more than likely 'cause he thought it would save him money (how you can't afford to do this is beyond me).

If vendor is messing people around then the sale may fall thru yet. But I am not holding my breath.
 
dubinamerica said:
This all sounds v. illegal to me !! and anyone involved could be in serious trouble with revenue. Could you report the estate agent and/or solicitor involved on this?
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This is happening, I would imagine, on 95%+ of houses that are priced at stamp duty levels.

I have seen numerous houses over the last few months and was first introduced to it by an EA in Naas who asked me for contents cash over the €317500 mark. I refused and lost the house. I wasn't going to lose a house I wanted again so every house I went to see afterwards at this price range I offered to pay contents over the €317.5K and it was accepted each and every time by every single EA. I was outbid on all occasions though by others doing the same.

I went sale agreed on one house for €325K, bid was €317.5K + €7.5K "contents" of which there were none. The vendor actually rang me to arrange a cheque be sent to him for the €7.5K!!! The sale fell through because the vendors pulled out two weeks ago. For sale sign is still up, EA told me they have decided not to sell. I presume someone who is paying stamp duty has come in instead of me. All I'm sorry about now, apart from losing the house, is that I didn't record the phone call when he rang looking for the €7.5K in cash.
 
I would agree that this is happening in most cases where the houses are on the stamp duty thresholds.
 
comanche said:
For my offer of 318500 I would be liable for 10k in stamp duty. He wants me to pay 5k for contents and save my self 5k. I was that I would pay 2.5k for contents. He is squeezing me for 2.5k for no reason.
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I think you should tell the agent you will consider the latest position but you just want to make a call to the Revenue Commissioners to validate the savings before upping your offer. Might help to soften his cough!

Roy
 
Isn't splitting contracts between house and contents in order to avoid (evade?) stamp duty illegal or at least questionable?
 
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