Does an estate agent have to put my offer forward?
Answer
Agents are required by law to put your offer to the vendor in writing within twenty four hours unless the vendor has instructed the agent not to contact him or her about offers below a certain level.
This instruction is sometimes written into the small print of the terms and conditions so its possible a vendor isn't aware but ultimately that's what they have stated.
An Estate Agent might also tell you that he does not want to put your offer forward without you first proving your finances are in order. Agents who don't check the financial viability of someone making an offer must by law state to the vendor that your offer is "reckless" which is a bit steep but meant to draw the vendors attention to the issue.
You can demand the estate agent puts your offer forward anyway but this approach is completely upside down.
You are more likely to get a lower offer accepted if you sell yourself and that means showing you have the cash for the deposit (or the whole purchase) by producing a bank statement, proof of stocks and shares, etc. and proof of an arranged mortgage if you need one - Agreement in Principle (AIP) or Pre Arranged Mortgage (PAM).
So, in fact, you should be demanding that the agent sees the documents and mentioned them to the vendor along with your offer.
I don't know why so many people get their backs up about this. Sell yourself as a great buyer and the vendor is more likely to accept when compared to a faceless figure.
In Chapter 15 of How to Really Buy a Property (called How to Really Make an Offer on a Property) I'll talk you through the full step by step process to get a great deal on your terms.
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How to Really Buy a Property
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"... you start viewing so you don't loose your dream home;
Who the surveyor, solicitor and estate agent are really working for;
How to make an offer to get things your way;
Who to trust and who, with the best intentions, may be misleading you;
Why you should work to minimise the time between..."
"... make an offer to get things your way;
Who to trust and who, with the best intentions, may be misleading you;
Why you should work to minimise the time between offer agreed and exchange;
Making sense of a property survey including;
What type of survey to get and why structural surveys can..."
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Chapter 1:
The First Questions Are For You
"... That's because a professional in the real estate business would not be able to reply immediately to your questions. They would need to know a great deal more about your personal circumstances before offering some sort of sensible guidance. It's better that you think about these questions now.
..."
"... or for worse.
But if you don't have cash the property market offers a strange doorway. It is not possible to go to a bank and say "I want to invest £250,000 in the stock market, can I borrow it please?" but it is possible to do that with property, wierd though that is.
Property offers..."
"... offers investors a chance to borrow sums unimaginable for other schemes which also means you can invest far more than the cash you have available at any point in time. However, as always, the cost of calculating any return must include the interest rate that you need to pay on the borrowed..."
"... market then starts to fall and values reduce by 10%. Their property is now worth £225,000 but the house they want is now £405,000. The difference, known as the 'Trading Gap', has gone down to £180,000. A falling market has saved them money and offered a chance to make a move they might not otherwise have..."
Chapter 2:
The Media and Property Prices
"... figures are out of sync with reality because in November and December the value of offers agreed are generally falling but the media reports the completions from the autumn when prices were going up. When the spring arrives offers agreed are rising but the media reports the completions from offers agreed in December and suggests prices are moving down. As summer starts they report prices rising even though offers agreed are falling. In short those who write articles based on land registry data are always about two to three months behind the real market where deals are being done...."
Chapter 3:
Making House Price Predictions
"... as to the future.
Recognizing this themselves there have been times, such as 2009 and 2010, when they refused to even offer a prediction. For 2011 the vague approach was used with a forecast of "may fall a bit or stay flat" which may not even technically be a forecast!
For 2013 they went..."
Chapter 4:
Understanding the Property Market
"... Friends, family and work colleagues are also very keen to offer their analysis, often based on that very same media. It would be interesting how many of these advisers would be interested in knowing what Estate Agents, Solicitors and Surveyors forecast for the industries that they work in!
..."
"... no time since 1975 have more homes been in demand and so few built.
2015 offers a glimmer of hope but at 155,080 new dwellings completed this still remains half the volume required according to the Future Homes Commission.
We also need to factor into this the effects of migration to the..."
"... This is why we have the strange situation that the economy may be in (and out) of recession but house prices and the stock market continue to grow. For many savers property offers a place where their funds will at least keep up with inflation. Inflation which simply eats away at cash in the bank.
..."
"... is less to choose from but it may be possible to pick up a bargain from a vendor who did not sell in the Spring and is feeling sorry for themselves. Buyers who did not find anything in the Spring are disappointed by the poor choice now available and are hesitant to make offers. We are now entering the phase that the professional investor operates..."
"... November and December are like June and July. If you want a bargain and don't need choice get out there. A low offer but the promise that the vendor could have the money by Christmas will be temptation and as most other buyers are saving for the festivities you can expect to negotiate a low price.
..."
"... is a trap here that no end of first time buyers fall into. They go out looking in November just to see what is around and get an idea of prices. They decide to wait until the New Year to see more choice. In the New Year prices are rising. Everything they view is worse than what they looked at before Christmas but costs more. They keep looking and prices keep rising. They decide to wait for prices to fall which then starts to happen in the Summer. Now there is nothing to choose from and what is available, even at lower prices is still more expensive than what they saw before Christmas. They wait until Autumn but prices then start to rise again and although they may make offers, they base these on the Summer market and they are outbid by other buyers. Before they know it they have been looking for a year and spent thousands more pounds in rent. A £200,000 property now costs £220,000. All told the year has easily cost them over £30,000 in rent and lost capital gain. Defiantly some change areas and start the whole cycle all over..."
Chapter 5:
Is the Property Market Overvalued?
"... about £240,000.
She made her offer and was at lengths to insist that her evidence was passed onto the vendor. The offer was rejected and three weeks later the flat went to sealed bids with two completely different buyers and exchanged a month after that for £302,000.
Tanya's evidence..."
"... historical data is exactly that and should not be confused with the future. Take a simple situation where Mr A puts £1,000 into a bank account that offers no interest and leaves it for 10 years. His long term 'average savings' are £1,000 ( 10 x £1,000 / 10 years). In year 11 he adds another 1,000 so now his long term 'average savings' are £1,090 ((10 x £1,000 + 1 x £2,000) / 11 years)...."
"... house ideal for a well-to-do family had come onto the market in Kensington. Prices were generally stagnant and the press was full of stories about an imminent crash but this did not stop three parties all offering on the property at the asking price of £1.1 million. The vendor decided to ask for sealed bids. Each of the three parties would put forward their best offer and the highest bid would get the..."
"... In the event the highest bid was £2.1 million, nearly twice the asking price. When the buyer was asked why he had made such an offer he replied, "I want this house as a place to bring up my family over the next twenty years. By then I expect it will be worth about £2.1 million".
He..."
Chapter 6:
Property Bubbles and Market Crashes
"... the few who do need to sell must drop their price to meet demand and these are the reported figures. They are however misleading if the majority of sellers would not offer their property to the market at this level. Property has no "sell by" date and so the economic theory of supply and demand can become shaky or even stop functioning in any meaningful way...."
"... at the statistics can be misleading if there is not a high volume of sales for any given area or geographical region. In a falling market they can also paint an uneven picture if sellers do not want to sell and all that is reported are the few property owners who are prepared to offer their real estate to the..."
Chapter 7:
Why Buy in a Falling Market?
"... at some point they will feel values have dropped, values may drop further, but they will eventually rise. They also know that they will be in a good bargaining position to have an offer below the asking price accepted. Many see property as a ten year investment so even a 10% loss in the short term will not make a major difference to their..."
Chapter 8:
Buying to Let / For an Investment
"... to the continued underlying strength of the market it is difficult to buy a property that will offer you a continuous income stream and rise rapidly in value. Buying off plan has also ceased, in most cases, to be a profitable avenue (see below). This means that before you start looking it is worth considering what you actually..."
"... Yield is a quick calculation to consider if your money is could make you more in another investment and, if you meet a regular investor out buying you will often see them staring into the air while they work out this calculation and decide what offer they want to put forward.
..."
"... that tend to offer the best yields are those not popular with private buyers. They are the ones that front on to busy roads, back on to railways, sit above commercial premises, are ex local authority, etc. The yield is good because the purchase price is lower for one or more reasons which has removed a large sector of private buyers as likely contenders. Tenants, however, only see a property as temporary and so are more relaxed about taking a view on living in a property that has a negative..."
"... believe they can secure a good site for the future.
Are there any other factors in an area that could prove popular - Bow for example has miles of rivers and canals often popular with new house builders keen to offer "waterside living"
Islington in North London was a classic example of..."
"...
Most developers sell new sites in stages and if there is a profit to be made, the best buys come in the first release. These can be offered at genuinely discounted prices so the builder can use slogans like 'First phase sold out in 5 days' when they come to selling subsequent stages.
But..."
"... an Investment Company -
With all the positive press that property was receiving a new type of company came into being around the start of the millennium. These companies offered to search out the 'best buys' on the market for investors and sell them to you for a fee.
Some worked by reserving..."
"... better companies become wilder in their claims about profit potential and many new and more suspect businesses also entered the field, all offering similar services. Long before the Credit Crisis struck hundreds (perhaps thousands) were loosing money on purchases that were just simply overpriced, others were falling victim to full on scams where the investment company, developer, insurer, financier and sometimes even the surveyor providing the valuation, were..."
"... that the best a property investment company can offer you is a discount because you are buying in bulk along with others. Avoid gimmicks such as 'guaranteed rent for the first x months' as these suggest finding tenants will actually be difficult and this short term comfort zone will have been factored in to the sale..."
"... and this short term comfort zone will have been factored in to the sale price.
Compare the mortgage deals offered with those from other brokers and lenders to ensure you really are getting the best deal.
In short do not believe for one moment what is presented before you or persuade..."
"... really are getting the best deal.
In short do not believe for one moment what is presented before you or persuade yourself that you have found your way into Easy Street. The offer may be totally valid and a great deal but do your own homework to make sure.
- Considering current housing..."
"... any major price increases being very unlikely.
At the extreme, for example, is Middlesborough. With so many empty houses and flats the local council currently offers to pay owners if they will “bring their empty home back into use”.
So even if a large company was to announce it would..."
"... was looking to invest in property but the South East of Britain was proving expensive. He found a company on-line that offered to help investors find sound buy-to-let investments in Leeds and they offered him two newly refurbished flats in a converted house for £230,000 and £280,000 each which was 'substantially below the market value because they bought large volumes from this..."
"... they bought large volumes from this builder'.
The rental figures on paper offered a 10% yield and there was plenty of blurb to explain why tenants would snap up such flats and why the capital gain would be excellent over the coming years.
They would organise the mortgage and even work..."
Chapter 9:
Getting on the Property Ladder
"... first time buyers wait and save while pouring money down the drain in rent. There are three ways round this:
Buy in a new development where the builder offers to pay your deposit
Get a mortgage for 100%+ of the property value
Buy somewhere that you don't want to live!
- Buying..."
"... the papers and surfing the net will give you no end of new developments where the builder is offering special deals on selected plots. These may be free flooring, stamp duty covered, or more significantly a 5% or 10% deposit paid. Many buyers avoid these because their dream property is a twee Victorian flat with fireplaces and walls that seep period..."
Chapter 10:
Working with Estate Agents
"... market continued to rise month after month and just over a year later it began to look good value. Three parties viewed the property and all three wanted to offer. They were immediately suspicious when they were each told they were not the only people interested and assumed it was just the agent trying to get them to bid..."
"... to bid higher.
One party did think the price was reasonable and offered the asking price. The other two parties believed they were being led up the garden path by the agent and knowing how long the property had been on the market assumed they could get a low offer agreed.
They only..."
"... on the market assumed they could get a low offer agreed.
They only realised the asking price offer from the third party was successful when they were told it had been agreed and the vendor was not taking their interest any further.
- Summary -
There are good and bad estate agents out..."
Chapter 11:
Sorting Out Your Mortgage
"... will need for a loan and ensuring there are no skeletons in your credit cupboard. Why you should arrange a mortgage before making an offer;
Why you should talk to more than one financial adviser;
How the same mortgage from the same bank can be cheaper in two..."
"... can't afford what you thought you could.
All the properties you have seen are irrelevant and you can't get the one you offered on. Everything you see on your new budget will pale in comparison.
You can afford more than you thought you..."
"... hundreds of pounds more than you have to in mortgage payments.
Anyone of these will loose your standing in the Estate Agents eyes making it harder to get the next deal agreed (see Viewing Properties and Making offers).
You should see as many financial advis0rs as you see agents. After..."
"... or arrears, etc., etc. The reasons for spending so much time with these people are simple:
When you come to offer they will be ready to tell you instantly what the best deal is at that time.
Different financial advisers are given different special deals by different lenders at different..."
"... to make them push you gently towards products most profitable for them.
If you are offered financial advise by an Agent then as long as the adviser is qualified, don't shy away, welcome it! If you aren't offered, ask.
- Agreements in Principle (AIPs) and Pre Arranged Mortgages (PAMs) -
..."
"... applied for credit - Every time you apply for credit your credit rating takes a hit, even if you ultimately don't take out the loan. The classic case is with store cards and goes a little like this. Mr X is out on a shopping spree and in several shops he is offered a discount on his purchases if he applies and pays for his purchase with the store's credit card. He has the money in the bank but he could make substantial savings so he takes the cards and pays them off within the month. But each card has represented an application for credit and so hit his rating. It will recover but if he applies for a mortgage in the near future he may be turned down as the lender is suspicous about the amount of credit he has been taking..."
"... if you have only arranged an Agreement in Principle there is still a great deal which could affect the bank's actual decision. The credit scoring they carry out may radically change what you can borrow. As such if you have found a really good loan or you expect to find a property quickly you should apply for the mortgage there and then even though you do not have a property in mind. Most financial advisers and lenders will try to resist this as it means more work without a full guarantee that they will get the business. Insist on it. This means you can be completely confident when you offer that you can afford it and the process will proceed smoothly and without..."
"... is offered by some financial advisers and allows you to be credit checked and ready to go without having to bully your bank to do it. The Sequence estate agency group are one such business that offer this service. The other advantage of a PAM is that because you have applied for the mortgage the interest rate and other features of that particular product are often held for up to three months, even if the lender removes that product from the market or increases their..."
Chapter 12:
Choosing a Conveyancer or Solicitor
"... the right solicitor has nothing to do with price, this is truly a field of getting what you pay for. If you are at offer stage and almost all of your savings have been taken up in deposit money and stamp duty it's tempting to try and save a few hundred pounds on the legal services. It's also a mistake that you will kick yourself for as you sit on hold, or wait for your fourth call of the day to be returned, or chase them to raise the enquiries that will allow..."
"... well financed conveyancing firm will charge a higher fee, but it will be appropriately staffed and have the technology to move things through quickly. Leaving your decision until after your offer has been accepted will lead to the same panic as not organising your finances and could leave you with many..."
"... be resolved quickly
He asks you for the funds to allow exchange and gets you to sign the contract, even before all enquires are back
The mortgage offer arrives
He calls you, informs you of any unusual circumstances, and confirms you are happy to exchange
In other words everything happens..."
"... works like this:
Receives contract and title deeds which he files
He waits to get the mortgage offer through (3-4 weeks). No point doing any work that will cost you money until the bank has given the green light.
He then starts the local searches (2-10 weeks). This was not done earlier..."
"... cost you money until the bank has given the green light.
He then starts the local searches (2-10 weeks). This was not done earlier as there is a fee involved and he didn't want to spend this until the mortgage offer was confirmed.
Once the local searches are back he then gathers all the..."
"... traditional approach will easily take three to four months from offer to exchange whereas the modern approach can usually keep the timescales to within four weeks! The traditional solicitor will argue that if anything were to go wrong at any stage he has saved you money. If your survey is a problem, for example, at least you will not have paid for local searches or his time to look at the contract. It's a contradiction - the longer a sale drags on, the more likely it is to fall through (see Chapter 19: Time Costs Deals) and cost you money..."
"... As a buyer you won't be able to hear this until it is too late so make sure to ask how they track the deal and who can access that information in your solicitors absence. Some very modern companies now offer internet access so you can keep informed on progress at any time of the day or night.
..."
"... future is in size and merged, bought other firms or been taken over themselves to justify the investment required
New companies have started up offering a totally new approach
Both of these are offering all or some of the following:
Longer opening hours (some including late evenings..."
"... over themselves to justify the investment required
New companies have started up offering a totally new approach
Both of these are offering all or some of the following:
Longer opening hours (some including late evenings and weekends)
Call centres to ensure you can speak to someone who..."
"... permission from 1903!
Frank and Sarah had offered on a Mansion Block apartment in Clapham. The price was agreed but they wanted to use a solicitor based in Exeter because the firm had been recommended by a friend and was cheaper than any quote they had had from London.
The Mansion Block had..."
"... is a very tempting offer from solicitors and even though it is not quite as good as it sounds, it means your solicitor is motivated to get the conveyancing completed quickly. Technically the "no fee" relates to the labour part of the fee. In other words you will still have to pay for local searches and other charges but they won't charge you for their..."
"... fixed fee offer from a solicitor is another relatively new product. It is usually more expensive than a standard estimated quote but remember that estimated quotes are based on everything going through without a hitch. This is rarely the case, especially with strange leaseholds and various extra legal documents such as deeds of variation can often lead to unexpected costs...."
"... to unexpected costs.
Depending on your financial circumstances the Fixed Fee option may be well worth considering. It is also a bonus to see a solicitor offer this as it shows they are forward thinking in their business attitudes and have control over their costs.
- Recommended by a..."
"... nasty surprises when you come to sell your home.
The flowchart on the following page is a simplified version of what has been described in this chapter but acts as a quickly accessible checklist when you consider the services you are offered.
On a final note be prepared for the fact that not..."
Chapter 13:
Your Own Homework
"... is plenty you, as a buyer, can check about any particular property and much of it can be carried out over the internet. This will help you in deciding whether or not to view a property in the first place, how much you are prepared to offer and even give you bargaining chips in the negotiations. Some of the most common questions that you can find answers for yourself are in this..."
"... Park, Busy Road, Railway? -
Google Maps now offer an excellent way to look at your prospective property from above and allow you to check for anything which may put you off. This might include large buildings that could be factories, busy roads, airfields, etc.
Recent improvements mean it..."
Chapter 14:
Viewing Properties and Making Offers
"... lengths affect a properties value;
How lease lengths can be extended;
Why Share of Freehold is not always attractive;
The agent's obligations if you make an offer.
- How the System Works -
It is an incredible thought that many of the viewings on properties are carried out by..."
"... more jaw-dropping is that the law requires an Estate Agent to pass on any offer you make to a vendor, in writing, within twenty-four hours. You do not have to prove that you can actually back this offer up with any sort of funding. Beware however that they call this type of offer, to the vendor, "reckless" and so it does you no favours at all as a..."
"... before they are prepared to spend time with you. As such you will need to know:
How to prepare for your viewings
Common terminology
How to make an offer
Preparing for Viewings -
There are two parts to your preparation:
Documentation you will find useful
Working out your..."
"... agents do require you to prove that you have at least thought about your finances before they will take you on a viewing. Although the majority will never ask for anything you do not want to be rushing around trying to prove your worth when you see that perfect property on a particular agents web site. While you are sorting out your documents someone else may be viewing and offering on the..."
"... an AIP is also a useful exercise in helping you consider your budget carefully. Not every lender will offer you three and a half times your salary (something that many first time buyers assume) as a mortgage. You will also start to get a feel of the various restrictions that certain mortgage products have. Some, for example, do not allow you to buy in blocks more than four stories high, others will only loan on properties with more than two bedrooms, and so..."
"... advantage is that, should you make an offer, the vendor is only reliant on you and your solicitor to get the sale through. If you have something to sell, even if an offer has been agreed on it, there is still twice as much to go wrong and the vendor you wish to purchase from knows absolutely nothing about the stability of your buyer...."
"...
In recent years it has become increasingly popular for home owners to sell and move into rented accommodation before they start looking for something to buy. Many have realised the cost of renting is often outweighed by the lower offers that are accepted by vendors from First Time Buyers.
..."
"... Free Property: A vendor who will sell his property and move out as soon as the solicitors sort out the paperwork and the buyer has the funds in place. This is different from the chain situation where a vendor accepts an offer subject to him finding a place to buy. Chain Free Properties are extremely attractive as any purchase should only involve five parties - you, the vendor, the lender and the two solicitors. The fewer people involved and the shorter the timescales, the more likely it is that everything will happen..."
"... it is that everything will happen successfully
Vacant Possession: This is often confused with chain free properties. Just because a property is empty it does not necessarily follow that it is being offered chain free so always double check.
- Tenanted -
It is possible to buy a..."
"... means repossessions can be cheaper than the normal market rate but only slightly, about ten percent. There are often far stricter requirements placed on you as the buyer. The lender may say they are only prepared to accept offers from buyers able to exchange within two weeks so check these restrictions..."
"... much easier to deal with that they actually refuse to handle transactions involving leasehold or share of freehold properties.
- Making an offer on a Property -
Once you have some idea of what you are looking at, you can get on and see if you like the property itself. If and when you find..."
"... freehold properties.
- Making an offer on a Property -
Once you have some idea of what you are looking at, you can get on and see if you like the property itself. If and when you find the right one, it's time to make an offer.
offering is much more of an art than most buyers realise and..."
"... time to make an offer.
offering is much more of an art than most buyers realise and one that is well put together can actually result in the vendor accepting a lower offer than they might otherwise. The exact way to do it is covered in How to Really Make an offer.
For the moment you should..."
"... the moment you should be aware that any offer made via an agent must be passed on in writing to the vendor within twenty-four hours. Any offer quite literally means any offer. The only exception is where the agent has written instructions from the vendor not to pass on an offer below a certain value...."
"... to pass on an offer below a certain value.
If you are in doubt you can always knock on the door of the vendor and check he has received the offer but be aware that, if the offer was low, you may have to sustain a fair amount of verbal abuse!
If your offer is accepted you have absolutely..."
"... fair amount of verbal abuse!
If your offer is accepted you have absolutely no commitment to do anything else. You can say, "Well that's very interesting but I was only curious, can we go out and look at something else", and hear the agent whispering obscenities!
From the vendors point of..."
"... obscenities!
From the vendors point of view he is also not committed to do anything. He may go out for a spot of lunch, decide your offer is actually too low after all and call the agent to reject it (more obscenities!). What is acceptable today may be unacceptable tomorrow.
An accepted..."
"... accepted offer simply means you enter the no mans land that exists between 'Sale Agreed' and 'Exchange of Contracts'. There is absolutely nothing binding about having an offer accepted so its worth knowing what has to be organised in order to get a more concrete deal. This twilight zone is covered in Part III, From offer to Exchange but first let's cover how to make offers which get..."
Chapter 15:
How to Really Make an Offer on a Property
"... safer that this buyer is offering a low stress transaction for me." Why agents may push you to offer more even when it is of little financial benefit to them;
What to offer and when;
How the time of year will affect your offer;
When to offer below, at or..."
"... for me." What to offer and when;
How the time of year will affect your offer;
When to offer below, at or above the asking price;
How to handle bidding wars and sealed..."
"... agents may push you to offer more even when it is of little financial benefit to them;
What to offer and when;
How the time of year will affect your offer;
When to offer below, at or above the asking price;
How to handle bidding wars and sealed bids;
Why defining your offer can..."
"... when it is of little financial benefit to them;
What to offer and when;
How the time of year will affect your offer;
When to offer below, at or above the asking price;
How to handle bidding wars and sealed bids;
Why defining your offer can save you money;
What should be in your offer..."
"... year will affect your offer;
When to offer below, at or above the asking price;
How to handle bidding wars and sealed bids;
Why defining your offer can save you money;
What should be in your offer apart from the price;
How to make a low offer seem attractive to a vendor;
Why non-refundable..."
"... at or above the asking price;
How to handle bidding wars and sealed bids;
Why defining your offer can save you money;
What should be in your offer apart from the price;
How to make a low offer seem attractive to a vendor;
Why non-refundable deposits rarely work.
- Listening to the..."
"... wars and sealed bids;
Why defining your offer can save you money;
What should be in your offer apart from the price;
How to make a low offer seem attractive to a vendor;
Why non-refundable deposits rarely work.
- Listening to the Estate Agent -
If you have read everything in the..."
"... you have read everything in the previous chapters you will be pretty worldly wise as to how to pitch your offer. You will know to take into account if you are in a rising or falling market along with the motivations of the vendor and so there should be no need to repeat what has already been said. Many buyers suffer some paranoia about letting the agent know what their thoughts are. In a large part they are concerned that the agent will make them go to their absolute maximum budget and to the large part they are actually..."
"... put it another way if the Estate Agent is being paid 2% of the sale fee and the negotiator is getting 10% of that then on a £240,000 flat the negotiator is going to be paid £480. If you have offered £235,000 and the negotiator is trying to get you to the asking price he is not trying to get £10 (the commission he would earn on the extra £5,000), he is trying to make sure you do not get..."
"... he cares because if it is one of his colleagues he won't get paid anything. If you really like the property listen to advice.
- How Much to offer and When -
This is the quandary many buyers find themselves in. They want to feel they have got a deal but at the same time they don't want to..."
"... your own desire for the property.
The graph below represents the level of offers versus asking price in an annual market cycle (see Understanding the Property Market) but you should take into account any factors that may have caused the cycle to vary.
offers agreed above or below asking..."
"... should take into account any factors that may have caused the cycle to vary.
offers agreed above or below asking price vary throughout the year in an annual property market that has not been affected by other factors
- Choosing your offer Level -
The following outline the various ways to..."
"... above or below asking price vary throughout the year in an annual property market that has not been affected by other factors
- Choosing your offer Level -
The following outline the various ways to offer on a property.
- Paying Below the Asking Price -
If you feel that there is a..."
"... the year in an annual property market that has not been affected by other factors
- Choosing your offer Level -
The following outline the various ways to offer on a property.
- Paying Below the Asking Price -
If you feel that there is a good choice on the market and you could as easily..."
"... the Asking Price -
If you feel that there is a good choice on the market and you could as easily buy the property you are about to offer on as another four that you have seen then there is nothing to loose in making a low offer. You want to pitch this at such a level that:
you do not..."
"... for maneuver
In any normal market conditions this should never be more than 10% below the asking price. To go further may mean the vendor will want nothing further to do with you as they feel insulted. You may increase your offer later but he will refuse it on principle.
A very low offer..."
"... it on principle.
A very low offer may mean that you embarrass the agent. The vendor will feel the agent is not doing his job. As such the negotiator will then be reluctant to show you further properties and move you to the bottom of his mental list of priorities.
- Paying the Asking..."
"... the net and thought, what an undervalued bargain!
A second line in avoiding this is to make your first offer just below the asking price before coming up. Exactly how to do this is explained in the section on pitching your offer below.
In exchange for offering the asking price you should..."
"... In exchange for offering the asking price you should expect, and request, that the vendor withdraws his property from the market although they may not be prepared to do this until you have instructed a solicitor and paid for a survey (i.e. spent some money yourself to show you are serious).
..."
"... one ever starts by making an offer above the asking price but very often there may be more than one offer at the asking price. In this instance a good agent will take the matter to sealed bids whereas a bad agent will start a bidding war. If it sounds like you are heading for a bidding war try and persuade the agent or the vendor to use sealed..."
"... this scenario the agent tells all offering parties to come back by a certain time, say close of business the next day, and put forward their full and final offer. This gives everyone a reasonable amount of time to make a cool headed decision of exactly how much they feel the property is worth to..."
"... aware that it is not always the highest bid that gets the property. One party may offer £302,000 but they themselves might be in a chain. If another party offered £298,000 and was chain free the vendor may go for what they see as the 'safer' option even though they will loose a potential..."
"... bid choose your figure and then move slightly up to something unusual.
In other words never offer £300,000. Instead offer £301,576. Many properties have been lost or won for the sake of figures as low as £50.
True Story - Sealed Bids at Elmhurst Mansions
A two bedroom mansion block..."
"... two bedroom mansion block flat had been on the market for five months. The vendor had verbally accepted an offer £5,000 below the asking price of £137,500. Another party then offered to pay the asking price. The original buyer was offered the chance to match this which they did and so the vendor, faced with two very similar offers decided to go to sealed..."
"... original buyers had already, to some extent, damaged their standing in the vendors eyes by suddenly coming up with an extra £5,000 but they then compounded this by saying their sealed bid would be £137,500, the same as the asking price and their current offer. The other party offered £341,700 and their offer was accepted. The original buyers then came back and said they would be prepared to offer £343,000. It was too..."
"...Although they were putting even more money on the table the vendor could not feel certain that they were stable because they could not make up their mind and only seemed to bid more when forced by another party, not because they truly felt the property was worth that to them. The vendor suspected they may try to renegotiate later and refused their offer.
..."
"... felt the property was worth that to them. The vendor suspected they may try to renegotiate later and refused their offer.
- Clearly Defining You and the offer -
Whether you are trying to get a low offer agreed or you are competing against other buyers, how you put your offer up can..."
"... their offer.
- Clearly Defining You and the offer -
Whether you are trying to get a low offer agreed or you are competing against other buyers, how you put your offer up can define your success in buying or loosing a property.
Explaining clearly who you are from the start is a huge..."
"... Explaining clearly who you are from the start is a huge asset in the eyes of the vendor, even if he did not realise it or want it before. You are also likely to take the average incompetent or amateur agent by surprise but it is a sure root to getting a good, sound offer agreed.
Apart..."
"... is a sure root to getting a good, sound offer agreed.
Apart from doing this verbally you would be well advised to fax or email the agent in order to make sure there are no arguments later. Your offer should look something like this:
I confirm that I wish to offer £235,000 on 10 High..."
"... confirm that I wish to offer £235,000 on 10 High Street, London, E6 2JN. The offer is to include the curtains, carpets and cooker. My offer is made up of a £200,000 mortgage from Barclays Bank and £25,000 in cash. I have nothing to sell and would want to exchange in four weeks time and complete four weeks after that. I attach my Agreement in Principle and a copy of a bank statement to confirm my finances. The solicitor I will be using is ... and their telephone number is..."
"... number is ...
You should provide as much information as possible so that the agent can paint the most rosey picture of you as possible to the vendor. The rosier the picture, the more likely you will get a good offer agreed and the vendor will want to deal with you only.
Show your serious..."
"... the financial adviser recommended by the agent - there is absolutely no obligation to use this adviser but as discussed in Sorting Out Your Mortgage the more options you look at, the better the financial deal. If you do have an appointment with a financial adviser suggested by the agent then when he puts your offer forward he can also say, "The buyer has been to see a financial adviser that I work with and he has confirmed the buyer is in a good financial position". This all works in your..."
"... works in your favour.
Being open and clear - the more the agent can tell the vendor, the more your offer will shine. If the agent can say, "This is a cash buyer and he has shown me his bank statement as proof" this is much better than "He says he is a cash buyer".
Laying down timescales -..."
"... solicitors and surveys.
When you are considering the wording of your offer also keep in mind where you are in pitching (see below). In other words if your first offer is low you may suggest that you want nothing included in the sale, adding these in as you increase.
The vendor could, at..."
"... vendor could, at this stage, come back to you and say he is interested in considering your offer but would not move out until he has found something to buy himself. You could then counter that by offering to pay more if he will consider moving out and renting or you could agree the exchange date but then offer a long completion date (say 6 months later) to allow the vendor to find and buy. In this way you will lock your property in and have a definite move in date, even if it isn't as soon as you might..."
"... it isn't as soon as you might want.
Whatever happens the actual transaction will move much more smoothly from the outset.
- Pitching an offer for Negotiation -
You would think that because you have made an acceptable offer you should expect:
that the property is taken off the..."
"... transaction will move much more smoothly from the outset.
- Pitching an offer for Negotiation -
You would think that because you have made an acceptable offer you should expect:
that the property is taken off the market
that you will get the curtains and carpets
that the vendor..."
"... could be further from the truth and so pitching an offer in a certain way should ensure your expectations are actually met. Whether or not you are ready to pay the asking price or just make an offer there is a way that is far more likely to work than simply bumbling in with your best and final..."
"... best way to pitch your offer is to carefully consider how much you are prepared to pay. Say the property is £260,000 and you are prepared to pay £250,000. As long as you are not in competition with any other buyer make an opening bid approximately 5% below what you are prepared to pay. In this case offer £240,000 and wait for the response...."
"... is likely to be 'No!' but then you will be able to increase your offer with strings attached. You could say, "£245,000 as long as the property is taken off the market". It will make the vendor feel that they have been able to increase your offer in return for something they were probably going to do anyway...."
"... you be lucky enough to get the property for a lower offer than your top price you can go back to the agent and say, "I am assuming the property will be taken off the market and that the carpets and curtains are included. Can you confirm this?" If there are any problems offer a nominal amount, say £1,000 more to get things your..."
"... buyers are often at pains to show how serious they are about the property they have offered on. As such they offer to pay a "non-refundable deposit" to the vendor as a sign of their honourable intentions. Estate agents are not allowed to handle these transactions so they must be done through the..."
"... agents are poorly experienced or badly trained and not even they know how to really put up an offer. But the way you do it and the way you present yourself can make a substantial difference to the final price you pay. Sometimes it may allow you to get a sale agreed at a price the vendor would not previously have accepted, sometimes it may mean the vendor will sell to you and not someone else (even if the other party is offering..."
"... yourself in the shoes of the solicitor and consider their position. The more the buyer shines in terms of the way they have prepared for the purchase, the more comfortable the vendor is going to feel and the more likely they are to say to themselves, "I wasn't thinking of selling at that price but I will because I feel safer that this buyer is offering a low stress transaction for..."
Chapter 16:
Who to Trust When Buying Property
"... a potential buyer has had an offer agreed and then asks to bring their mother or friend round to have a look many agents refer to this as "The Kiss of Death"! And it is with good reason as they rarely share the same tastes but despite this the advice they hear from someone they respect usually causes them worry and..."
"... most professional solicitors do.
But there is a flip side which depends on the type of solicitor you have instructed. You will either be paying a solicitor a flat fee for their services or you will have hired one that offers a 'no purchase, no fee' promise.
Flat fee solicitors - in this..."
"... purchase, no fee' solicitors - these firms usually calculate into their business model that a certain percentage of purchases will fall through. Those clients that do buy cover these costs which means they are generally more expensive. This aside a 'no purchase, no fee' solicitor has a vested interest in your offer going through to exchange and so may gloss over points that they really should bring to your attention. The likelihood of this will rise if the percentage of fall-throughs they are experiencing is rising above that of their business..."
Chapter 17:
The Property Buying Process in Theory
"... believe should occur.
Arching over all of this is the essential concept that the longer it takes to move from offer Agreed to Exchange of Contracts, the more likely it is that the purchase will fail. To understand this specifically see Chapter 19: Time Costs Deals.
Once your offer has..."
"... your offer has been agreed with the agent (or directly with the vendor if you are buying privately) there should be no need to have any contact with the agent or the vendor. Each party has a specific number of actions that they must take and theoretically this should all occur via the solicitors. Some solicitors feel so strongly about this that they refuse to accept calls from estate agents! It is how these actions are undertaken and their results that cause disagreement because there is no definitive protocol for buying and..."
"... offers through agents tend to have a better chance of success because small queries need only be passed via one party for answers. When emotions become heated the agent is the filter who can remove the obscenities and act as an objective go between. A good agent will also remove any comments you make that he feels may be misinterpreted by the vendor before passing messages or queries..."
"... agreed offers are more likely to fail for exactly the reason explained above. The buyer talks to the vendor and says things they may not truly mean or makes small comments that are taken out of context (and vice versa). You may tell a vendor, for example, that you can't wait to move in and add a fantastic conservatory. The vendor realises he only accepted your offer because he thought it was the top of your budget. Now he knows you have extra cash he begins to think he has undersold the property and pulls out of the transaction. Innocent comments, profound..."
"... your solicitor funds to exchange and complete
- Instructing a Solicitor -
Once your offer is agreed you will need a solicitor to act on your behalf. This solicitor will need to do two things:
Check that the paperwork related to the property is satisfactory for the lender if you..."
"... helps them verify that this is actually what you are getting.
What Can Go Wrong
You leave it until after having an offer agreed to find a solicitor and have to choose an unsuitable one in a panic
You choose a solicitor based outside the area you are buying who does not understand what..."
"... parties believe it is "obvious". The vendor may, for example, have chosen a solicitor in Wales. His solicitor has told him that it normally takes about twelve weeks to move from agreed offer to exchange. In the meantime your solicitor in London tells you there should be an exchange within three weeks. Both you and the vendor sensibly expect that your respective solicitors will have said the same thing and plan your lives accordingly. Fireworks will occur..."
"... mortgage application is sent to the lenders final underwriters. They will take one more look at the entire set of paperwork before issuing the offer. Every now and then they spot something that has been missed by the previous departments and what you thought was in the bag suddenly becomes dead in the..."
"... and what you thought was in the bag suddenly becomes dead in the water.
In short nothing is certain until the mortgage offer is in your hands. There are simply greater or lesser degrees of certainty!
What Can Go Wrong
As a cash buyer and the surveyor was instructed by you then..."
"... cautious, does not agree with the price you are prepared to pay for the property
There is a problem with the legal paperwork of the property which does not bother you but causes your lender to withdraw their offer
You have chosen a lender with unusual requirements in the CLM Handbook and your..."
"... lender but forget to tell your solicitor who then collates the wrong information.
The lender's final underwriter spots an error in the paperwork which means that they refuse to issue you with a mortgage offer
- Organising Inspections of the Property -
As a buyer there are certain..."
"... the set of paperwork sent by the vendor's solicitor
Request any further enquiries from the vendor's solicitor
Apply for searches
Check your mortgage offer
Issue you with a report
Exchange Contracts
Complete
- Checking the Paperwork -
Your solicitor will receive a set of papers..."
"... and Fittings - this specifies exactly what the vendor intends to leave. It should confirm any agreement you made at offer stage such as including the curtains and carpets. They may also list items which they are prepared to sell to you should you want them. These could be anything from shower curtains to kitchen..."
"... was a structural part of the property.
The Lease (Leasehold and Share of Freehold Only) - This comes from the vendor's solicitor and defines what the freeholder expects from you as a leaseholder. See Chapter 14: Viewing Properties and Making offers
Service Charge Accounts (Leasehold Only) -..."
"... are a disaster compared to those that he has seen in the green and pleasant rural location where his practice is based
- Checking the Mortgage offer -
If you have applied for a mortgage in order to purchase the property then, all being well, the lender will issue you with an offer...."
"... you have applied for a mortgage in order to purchase the property then, all being well, the lender will issue you with an offer. Your solicitor will not want to exchange until you have this and he has a copy. To do so would mean that you would be liable to complete and pay the balance, without any guarantee that someone will lend you the cash...."
"... the balance, without any guarantee that someone will lend you the cash.
Your solicitor will check the offer to ensure the bank has not made any errors on the offer which would affect the your ability to complete.
What Can Go Wrong
The most common is a mistake in either your details or..."
"... causes weeks of delay. It is surprisingly common!
The sale price is too low and the lender, not convinced the vendor can cover the shortfall between the outstanding debt secured on the property and your offer, refuses to release the title deeds
The Vendor has the title deeds but cannot find..."
"... sent by your solicitor due to technical problems
- The Vendor in the Property Buying Process -
Once the vendor has agreed to accept your offer for their property his responsibilities are to:
Sign the Estate Agents Terms and Conditions (if using an agent)
Instruct a Solicitor
Agree to an..."
"... talking, there really is no need for the agent anyway.
What Can Go Wrong
The Vendor has agreed to your offer but is not in the country at the time so delays occur while terms are sent, signed and returned
The Vendor gets into an argument with the agent over the fee and decides not to..."
"... at the time so delays occur while terms are sent, signed and returned
The Vendor gets into an argument with the agent over the fee and decides not to accept your offer after all (usually because he thought the fee was lower)
Although the vendor has agreed to your offer and a fee, he decides..."
"... your offer after all (usually because he thought the fee was lower)
Although the vendor has agreed to your offer and a fee, he decides that he has not been impressed by the agent and wants to renegotiate this fee first
- Instructing a Solicitor -
A vendor will have many of the same..."
"... Despite the endless pitfalls that seem to be placed between agreeing an offer and exchanging it is heartening to know that over fifty percent succeed. It is often the smallest and simplest issues that become the most complex while those that seem insurmountable can be quickly and easily resolved.
..."
Chapter 18:
The Balance of Power
"... and lost it all.
From the moment you make an offer to the time you negotiate a completion date and exchange the person with the upper hand can vary considerably. This is yet another reason to get an agreed deal through to exchange as quickly as possible.
- Real and Perceived Power..."
"... key is 'at any given moment'.
With private sales motivation is much more difficult to gauge as the vendor may well lie in order to make himself look less desperate or conversely to try and get an offer which he can then use to push other potential buyers higher.
- How the Balance of Power..."
"... that matches your requirements and budget
the market is rising
your rental lease is running out
you have a buyer on your property who has offered an extremely good price and wants to exchange fast
this is your dream property
All of these factors can change very quickly. Imagine you have..."
"... your dream property
All of these factors can change very quickly. Imagine you have got an offer agreed on a vacant property from someone who is in financial trouble, believes the market is falling and wants the flat sold quickly so they can finalise their divorce.
Within a month the same..."
"... so they can finalise their divorce.
Within a month the same person may have received a fantastic rental offer on the flat, come into some unexpected money, seen reports in the media of a rising market and got back together with their ex-spouse.
You have gone from having power to having..."
"... Story - Chipping the price at Swan YardMelissa had made an offer on a one bedroom flat within sixty seconds of an underground station. It was a safe location and the property had been decked out loft style. The owner had been renting the flat but the tenants were shortly due to move out. Concerned at the prospect of paying two mortgages he reduced the price from £220 to..."
"... Melissa's offer came in at £195,000 he was relieved and agreed to it immediately. The transaction moved through to the point of exchange within five weeks. At this point Melissa thought she would take a chance and, giving lots of arguments about a falling market (which did not exist) told the vendor that if he wanted to exchange he would have to reduce the price by a further..."
"... weeks previously the people who owned the flat upstairs from the property in question had approached the vendor and offered him the full £205,000 so that they could change the building back into one whole house. The vendor had done the honourable thing by telling them that he was already under offer and would not back out of an agreement he had already..."
"... the good news.
Melissa offered to exchange immediately at the original agreed price of £195,000 but this was still £10,000 short of an offer from buyers who had an excellent motivation to exchange on this particular property. She lost the property and all of her expenses.
..."
Chapter 19:
Time Costs Deals
"... take stock and change the bigger plans we have, such as moving house.
The longer the time period between offer and exchange of contracts, the more likely it is that the deal will fall through, often for no good reason.
Here are just a few events that can stop either the buyer or the vendor..."
"... the Property they want to buy
Any part of the chain below collapses
Any part of the chain above collapses
Another buyer makes an offer
Fire or flood at the property
Redundancy
Splitting up with a partner
Meeting a new..."
"... happen.
True Story - The Windows at Seymour Street
Sonya and Mark had made an offer on a one bedroom flat in the depths of the Winter market. The low level of viewings had persuaded the vendor to accept £240,000 on their £270,000 flat.
David was another buyer who had come to see the flat..."
"... in the meantime, was close to exchange on his purchase when the vendor pulled out after loosing his job. David called the agent to talk about new properties he could buy and asked after Seymour Street. He was shocked to find that after nearly three months, and in the middle of a busy Spring market, it had not exchanged and immediately offered to pay the asking..."
Chapter 20:
What a Property Survey Really Means
"... other words, as any historian will tell you, don't just look at what was said but ask why it was said. You should also be careful to differentiate work that should be expected (e.g. you should expect to repaint the windows every two years) and work that no person offering on the property would expect (e.g. the entire roof needs replaced). This chapter..."
"... is crucial as if the surveyor does not agree with your offer price the bank won't lend. It is also the most valuable type of survey and probably all you need for almost any purchase. Most people are not aware that the valuation survey will also report on anything crucial that should be investigated. If they believe there is a serious problem with, for example, damp they will hold back all or part of the mortgage until it is investigated (see below). It is much easier to read a two page report that is very specific about major issues that will affect value than a fifty page report telling you that the aerial may need re-fixing and one of the windows in the back bedroom needs to be repainted in the next twelve..."
"... and Nicki had successfully offered on a two bedroom lower ground floor garden flat just off Islington Green in London. They had seen no end of properties and although this one was above their original budget they stretched to afford it. They then cut costs by going with a lender that had the lowest fees. The surveyor that looked at the property was a self employed individual who agreed that the property was worth £240,000 (their offer) but said £5,000 should be held back as a retention because of damp in the..."
"... take a view on the work or get other quotes to see if someone else will do it cheaper.
Here is how it works in reality:
Mr X offers and gets a survey carried out
Mr X is very worried about damp and so gets damp specialist in
Damp specialist says £3,000 of work required
Mr X tries to..."
"... on it"
Mr X eventually successfully gets £1,000 off price and goes through with deal
Three years later Mr X sells his property
Mr X gets an offer which he accepts
Mr Xs buyer has a survey which shows up damp
Mr Xs buyer gets a damp specialist in who says £3,000 of work is required
Mr Xs..."
"... Story - The Tree at St Paul's StreetDiane was very keen to purchase a three storey Georgian House in Islington. She offered to pay a little less than the £525,000 being asked and the vendor accepted. Her survey, however, questioned how stable the property was due to a tree situated in the pavement directly outside the front door. The vendor having had no issues when he purchased the property three years earlier refused to pay for a structural engineer to examine the building...."
"... all the ins and outs of a survey report the crucial question is value. If the survey report talks about roof or plumbing but concludes that the property is worth what you have offered then trying to renegotiate price is at your own risk. Too many people ignore this fact. Most properties are old, very old, and problems or future works are to be expected. The surveyor knows this and that is why they conclude their report: "In its current condition and in the current market the property is worth £x". And if £x is the price you have agreed with the vendor then so be..."
Chapter 21:
Legal Matters in Property Purchases
"... hours of agreeing a sale price;
In Chapter 12 (Choosing a Conveyancer or Solicitor) we covered how to choose a good solicitor that will take your agreed offer through to a quick and timely exchange so that everyone is locked into the deal.
In Chapter 17 (The Property Buying..."
"... way through it, sorting out what is serious and what is simply hot air.
This chapter looks at the essence of what is, and isn't, important outside of the survey and the options you have but are not always offered.
Your finance company who will provide the mortgage basically asks the..."
"... have but are not always offered.
Your finance company who will provide the mortgage basically asks the question: "Are you, the buyer, a good bet to lend to and is the property you have offered on a good bet to secure that loan on should you ever default".
The solicitor also has a set of..."
Chapter 22:
Why Vendors are Poorly Prepared
"... everything that happens correctly after that is a bonus! Why defining your offer at the start will save time and stress with a poorly prepared vendor;
Why there can be long delays between an offer being agreed and your solicitor receiving papers;
Why..."
"... defining your offer at the start will save time and stress with a poorly prepared vendor;
Why there can be long delays between an offer being agreed and your solicitor receiving papers;
Why the paperwork the vendor needed to buy the property may not be enough;
How to get documents..."
"... this is backward thinking but no solicitor or agent wants to persuade their client to spend hundreds of pounds in advance of a sale and then have their ears burnt six months down the line when no offer has been made. For those solicitors and agents that do do it, however, you hear nothing but praise once the transaction is..."
"... once the transaction is completed.
Most don't so the result is that, once your offer is accepted, it often feels as if the vendor is actually reluctant to sell. There can be long delays while they choose a solicitor or get the necessary paperwork together.
The vendor may also not have..."
"... making your offer the vendor is usually keen to make sure you can move quickly but may not have their own documents in order that will make the speed they require actually happen. This does not always mean they do not want the transaction to go through in a short time-scale and in order to keep things moving there are many things you can do to short circuit delays. Doing this is crucial because, as we have seen already in the chapter Time Costs Deals, speed is..."
"... the Paperwork -
There is a set of basic paperwork which your solicitor is going to need from the vendor's solicitor if exchange of contracts is going to take place. If this has not been prepared prior to your offer there will be immediate delays unless:
you have chosen a good..."
"... can make all the difference to the success, or otherwise, of the deal
As an example lets say you have your offer accepted on the first day of October, which for the purposes of this illustration is a Monday.
What the vendor is doing
What your..."
"... deals fail because the buyer waits weeks with no paperwork and, assuming the vendor is not serious, then goes out and offers on something else. If there is good communication between the solicitors or with the agent then at least you know where in the above process they are and that things are actually..."
"... will be far fewer issues on this if you make your offer comprehensive (see the chapter How to Really Make an offer on a Property). Many buyers are shocked when they see this document if it outlines how much the vendor wants them to pay for carpets, curtains, door handles, light switches, garden sheds and so on. This does not always mean that the vendor is being unreasonable or greedy. It may be that in all the purchases they have ever done they were expected to pay extra for these items. As such they will believe that paying for carpets and curtains is the..."
"... buyers also get upset when they believe their offer was put forward to specifically include a certain item, such as the cooker, and the fixtures and fittings list says it is not included. Bear in mind that the vendor may have filled out this form weeks before your offer was agreed but not thought to adjust it's contents. More often however it is the solicitor who makes the error. He finds he suddenly has two fixtures and fittings lists and, not sure which one is correct, sends the more "prudent" one...."
"... more "prudent" one.
As soon as you are aware of an error contact the Estate Agent immediately, remind them of your written offer and ask them to contact the vendor. At the same time ask your solicitor to approach the buyer's solicitor in order to resolve the matter.
Again assume error in..."
"... helpful.
By making the approach direct you will be able to find out if the company in question is still in business. If not you can immediately organise quotes to ensure something you relied on in your offer, say the damp proofing, is not going to become an unaffordable expense.
- Service..."
"... questioned by your surveyor.
Even if the vendor decides not to go ahead with works that need done they often organise quotes so you are fully aware and objective when it comes to making an offer, and that offer is far more likely to make it through to exchange.
In a handful of cases the..."
Chapter 23:
Why Vendors Choose Bad Estate Agents
"... first step is to be sure that the staff are motivated to sell. For this reason avoid agents that operate a "pooled commission". In this situation the fee goes into a central pot and then a percentage of that is shared between every negotiator who works there, whether or not they were involved in that particular transaction. The result is that the moment one negotiator has interest in your property the other negotiators lay off, knowing they will get a percentage of the deal. To them this is a simpler option than coming out at eight in the evening with an alternative buyer even if they might offer you an extra five or ten thousand pounds. That alternative buyer may be desperate to buy your property and more financially sound but they will never be told about..."
"... buyers build a relationship with good agents who gain an understanding of what works for them and what doesn't. They build a trust and will go and view a property if the agent says they should, whether or not there are a set of details prepared. Someone who makes a random call because they saw your in the paper is unlikely to be at an offering..."
"... is a fallacy and a very glossy way of saying you are on with two agents. You are either sole agency or with multiple agents. The term has evolved as a way of agents offering you a sole agency fee, in other words a lower one, even if you are on with another agent. In advertising the words "joint sole" can be used to make the property sound exclusive in some other way than having to say..."
"... after deciding they are the best to represent you.
Agent A calls Agent B and offers to lend him your keys on the understanding that if agent B sells the property Agent A will still get part of the commission, and often vice versa.
You come home one night to find agent B showing someone..."
"... enough the latter part of that sentence is exactly why you should be going on with someone else. A higher fee means their staff will get paid more if they sell your property and neither agency wants to have their nose rubbed in it when the other agent gets you an offer. More motivated staff, more commission on offer and an adversarial environment are all more likely to get you the best possible price and hence why you will find most professional developers and investors almost always use two or three..."
"... with the price.
More than three signs outside the place you are trying to sell immediately makes buyers perceive that you are either desperate and low offers are worth trying or they will wonder what is wrong with the property that has meant five agents cannot sell it.
Even if you limit..."
"... regularly
Your property is not in their front window
They have not had many viewings
Some other agent may have different applicants
They got a low offer
Slow preparation of the details - Many vendors get sidetracked by the details. If the negotiators in the agent are well motivated they..."
"... don't like the details - This is, in the world of marketing, an extremely good sign. Advertisers claim that if their client does not like the campaign it is halfway to success as they are exactly the people that the campaign is not aimed at. Do not get bogged down thinking that the reason you bought the property is the same reason your new buyer will offer. If the agent(s) you have chosen are doing regular business leave them to it. You are paying them for their skills in selling so don't..."
"... property has not been advertised regularly - Good agency is not about shoving your property in a newspaper, taking the calls, doing the viewings and agreeing an offer. Good agency is about taking the constant stream of applicants registering and matching them to the properties on the market. It is naive to think that one photograph in the local paper will solve everything. It is far more likely to create a spate of viewings from window shoppers. A good agent will filter these out which means that despite having received many calls, very few viewings will actually occur. If a buyer is serious they will already have registered with that agent..."
"... agent may have different applicants - If you have instructed at least two good agents the chances of a third agent actually having someone different are pretty remote. Many vendors change agent simply for peace of mind that they are actually doing something. In reality if you go under offer quickly this is more luck than anything..."
"... Story - Changing Agents for different buyersThere were two properties for sale on Dagmar Terrace in Islington. One with agent A and one with Agent B. Both agents were well known and represented to the extent that you could reasonably assume anyone registered with Agent A would also register with Agent B. They were all getting regular viewings but none were attracting any offers. At the same time both vendors decided it was time for a change. The one on with Agent A went over to Agent B and the one on with Agent B went over to Agent..."
"... got a low offer - Or did they? Perhaps they got the actual market value of your property but you do not want to face it. This is especially true if they have received two or more low offers on your property. You should also bear in mind that by law the Agent must put up all offers to you unless you have specifically instructed them in writing not to inform you about offers below a certain..."
"... is unbelievably common for a vendor to swap agents after a low offer and the new agent is already rubbing their hands with glee. In their mind the previous agent has done the hard work. In other words they have found the market value of your property and all they need to do is get an offer in the same region, even slightly lower. They can then argue that a second or third offer at the same level is proof of what your property is worth. Very often they know that mentally you will be coming round to this way of thinking and will..."
"... professional estate agent is not an easy task but there are some simple steps to follow in order to make sure you are successful and negotiating low fees is not one of them. Once your property is being marketed consider feedback and offers carefully and avoid knee-jerk reactions which may be of little..."
Search Results for 'offer' in
Property FAQ
- Does an estate agent have to put my offer forward?
- The estate agent says there is more than one offer, is it true?
- Survey valuation lower than offer, what to do?
- Offer accepted but house or flat still on the market?
- What happens if the survey valuation is higher than my offer?
- The property price was £190000 I offered £191000 and accepted the property was showing sold as after survey I lowered my offer to £181000 and provisionally accepted again ,but now it is on market and
Search Results for 'offer' in
Property Terminology
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- Agreement in Principle
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