Selling Fees - Marketing Strategy

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    Selling Fees - Marketing Strategy

    Hi

    I had an agent round to value a property - I did have it in mind to go with this particular agency but by the time the guy had left me, I had felt really pressurised to sign up and I am kicking myself that I fell for his patter. All the agents around here are 1% plus VAT but he gave me all the spill etc and I signed up at 1.25%, which based on his selling figures will be a minimum of £9K.

    I can't help but think this is a ridiculous amount and I'm regretting signing up. I am no-where near ready to have the property marketed and I haven't agreed to any photos or board or anything. Can I change my mind and tell them I don't want to sell through them after all? I only wanted to sign up for 6 weeks but he said no, it had to be 12 week sole agency etc.

    What really annoys me is that I had a figure in mind of what the house was worth but he was adamant that it was worth at least £25k more. For this reason he was saying that's why he is worth the extra .25%. So after I finally gave in and agreed to his costs. I signed on the dotted line. After this, he then said, OK, we will market it at offers over £XXX - but this figure is £25k less than what he insisted it was worth. I pointed out that this is not what he told me but he said this gets people in and then the offers will come in.

    I tried saying 1 %, but then if you get me the additional £25k, I'd be less unhappy about paying the 1.25%.

    I don't suppose I can get out of this agreement can I?

    #2
    I used to work for an estate agency (as a mortgage adviser) who were part of a national group of local estate agency chains.

    Their business model was to over-estimate the potential sale price to the vendor and have higher fees, a combination of which ended up in a net gain for the vendor when compared to their competitors. Of course, many vendors found themselves advised to drop the price once it became clear that the property was not going to sell at the initial price.

    Unfortunately, by that time, the vendor was tied into a contract with the agency and ended up worse off than going with a competitor agency once they sold.

    I'm afraid you've been had

    Comment


      #3
      You've got 14 day cooling off period to cancel , or if he didn't tell you that, you can cancel at anytime .
      Personally I would give it a week for them to invest some time then ring up and say you've changed your mind about selling
      He will probably offer you the 1% then !!

      Comment


        #4
        Unless you signed the agreement at the agent's premises you have a 14 day cooling off period and can cancel the agreement.
        If they've spent any money, they can ask you to pay them for it, but I'd guess not (and, even if they have it will be cheaper than .25%)
        When I post, I am expressing an opinion - feel free to disagree, I have been wrong before.
        Please don't act on my suggestions without checking with a grown-up (ideally some kind of expert).

        Comment


          #5
          Thanks everyone.

          I just had a call with CAB and basically they are in breach of contract for mis-representation of how much the property is valued at and advertised at. Hopefully, this will end OK with them simply revising their fees.

          Comment


            #6
            All has gone ok. Letting agent issued me with revised contract.

            Comment


              #7
              I'm a bit late to this thread Claymore, but I was going to tell you to relax. Any time I've agreed a high commission rate, the estate agent has moved heaven & earth to find me a buyer. Any time I've negotiated a lower commission, they do as little as possible.

              Comment


                #8
                I get what you are saying JKO. I am happy with the revised fee - and I think/hope they will get me a decent price . At the end of the day, a house is only worth what someone is prepared to pay, and I will only sell if I am happy with the price.

                Comment

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