advertisement


Estate agent fees

Ponty said:
Yes, thanks, the system certainly seems better in Scotland, although I’d suggest for many properties it’s bank valuations which set the price.
Click to expand...
As a buyer I find offers over xxx totally abhorrent. It's basically an auction.
 
TheDecameron said:
Most of them will work for a performance based fee. We sold twice with the same agent in the past 12m. The contract was 1% if they hit an agreed threshold and they exceeded it ( and our expectations) both times.
A good way to assess them is to contact them as a potential buyer and see how effective they are at responding to you and weighing up your intentions and resources. Coincidentally we also bought through the same agent and of course they would know exactly how much we had -for them to squeeze out of us -and they certainly did.

In Scotland they tell interested parties there’s a closing date with legal offers to be delivered by noon on a given date, effectively a blind auction. They’ll tell each party how many other bidders there are likely to be and that’s what drives the price. The advertised ‘offers over’ price is usually artificially low to get interest up, the real issue is how much above the official valuation buyers are prepared to pay.
Click to expand...
Twice? So that must mean you are a landlord...and why do people believe what the estate agent says about number of prospective bidders?
..
 
richardg said:
I don't like auctions. I'm used to buying things with a price tag on them. I think this ia a relatiley normal sentiment.
Click to expand...

What most people seem to want is a solid price tag that they then proceed to try and knock down.

In the case of my parents house mentioned above the agent suggested trying it at "offers in excess of xxx" In the event two offers came in at xxx-15 and xxx-20 respectively then one at xxx+5. I was very happy since xxx was already 50 grand more than I was originally expecting.

Nobody was forced to bid if they didn`t like the process.
 
richardg said:
As a buyer I find offers over xxx totally abhorrent. It's basically an auction.
Click to expand...

I’d agree. The Scottish system is better insofar as a deal is a deal. None of the shenanigans that go on in England / Wales. I simply won’t get involved in any property which states ‘offers in excess’ in England / Wales.
 
Bob McC said:
So you always paid exact asking price for your house/s?
Click to expand...
No. but getting an AIP so far has always been necessary fo me, So it has always been useful to get the AIP and then go and look for the house knowing that when you find a house it will not go over the agreed amount .
 
Banks are significantly undervaluing properties at the moment. Makes it harder to get a mortgage when prices go way over asking price at the moment

In the summer 25% over asking was achieved in rare cases but nearly always way over asking price in our area

3 beds are bonkers prices as they are so much in demand due to changes since lockdown and folks wanting a study

Properties in Devon have been flying out the door as folks want country properties if they can work from home
 
I do not agree that banks are undervaluing properties.
They perceive asking prices as unrealistic and a risk if they had to repossess.
This has always happened by the way.
Every house I have bought, 4 since 1974, were “undervalued” by the bank and I had to find extra funding.
 
hifinutt said:
Banks are significantly undervaluing properties at the moment. Makes it harder to get a mortgage when prices go way over asking price at the moment

In the summer 25% over asking was achieved in rare cases but nearly always way over asking price in our area

3 beds are bonkers prices as they are so much in demand due to changes since lockdown and folks wanting a study

Properties in Devon have been flying out the door as folks want country properties if they can work from home
Click to expand...

Banks aren’t undervaluing. People are over bidding, assuming the bank will agree.
 
Ah sadly they are undervaluing .just had a battle with mortgage surveyors for a remortgage and they really did err far too much on the side of caution. 3 bed house that would sell in hours for 185 to 190 k . Surveyors for mortgage company valued it at 150k .
 
The bank are looking ahead a few years, not a few hours.

If someone is not proceedable, their offer is irrelevant.
 
Ponty said:
Banks aren’t undervaluing. People are over bidding, assuming the bank will agree.
Click to expand...

I think that's correct for over here, or that's what's happening, resulting in houses being put back on the market, mind you the estate agents put the initial valuation on the house and the people bidding increase the price but the valuation is not based on what the house is actually worth but more what they think they can get for it due to demand in the current market, I think they'll be big changes next year but maybe not until the second quarter.
The thing I don't understand is the bidding up £5K and £10K at a time, who do these people think they are? Who are they trying to impress? Or do they just want to give money away? I'm sure the vendors and agents are loving it but it seems foolish to me, for the record we've recently had a sale agreed on a property Tracy really wanted, every time the agent rang me to say someone else had bid it up another £5K I just said stick another £500 on it, had I of been as big a mug as the other bidders I'd of been out an extra £4.5k, that'd buy me a nice tonearm and cartridge or something else I'd like.
 
yes its very very hard at the moment . been helping a friend to buy and she was mad keen on one place . when i saw trees growing in front of the garage and the rear extension falling away i smelt a rat !! anyway this place was snapped up and went for some stupid price . a few weeks later i found out that all these places are classed as defective housing and not easy to get mortgages . there many huge estates of housing like this . estate agents dont often tell you about it till you have paid hundreds to a surveyor to find out
 
hifinutt said:
estate agents dont often tell you about it till you have paid hundreds to a surveyor to find out
Click to expand...

In Scotland we still have home reports. We have sold two houses and bought one on the basis of home reports. The two buyers both English accepted the home reports without any problems.
 
Darren L said:
I think that's correct for over here, or that's what's happening, resulting in houses being put back on the market, mind you the estate agents put the initial valuation on the house and the people bidding increase the price but the valuation is not based on what the house is actually worth but more what they think they can get for it due to demand in the current market, I think they'll be big changes next year but maybe not until the second quarter.
The thing I don't understand is the bidding up £5K and £10K at a time, who do these people think they are? Who are they trying to impress? Or do they just want to give money away? I'm sure the vendors and agents are loving it but it seems foolish to me, for the record we've recently had a sale agreed on a property Tracy really wanted, every time the agent rang me to say someone else had bid it up another £5K I just said stick another £500 on it, had I of been as big a mug as the other bidders I'd of been out an extra £4.5k, that'd buy me a nice tonearm and cartridge or something else I'd like.
Click to expand...

People get carried away bidding up. I’m sure the thought process is along the lines of ‘We really want that house so will outbid, it’s only another £50 a month on the mortgage’. Bank then looks at the value in the cold light of day and says no. Banks always set values, on the way up and down, unless you are a cash buyer in which case overpay at your leisure!
 
The market is officially white hot, despite eye watering stamp duty. Became available on Friday, sold by Monday. Of course, nothing is sold until it’s sold.
 
You must log in or register to reply here.


advertisement


Back
Top