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Multi Estate Agents

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  • Multi Estate Agents

    Hi,

    I am new to this forum and I hope someone can kindly give me some advice.

    I have been looking for a property and recently found one which I made an offer on. The offer has been accepted, however the property was being advertised with 5 estate agents. After my offer was accepted, I realised that a 6th estate agent popped up on rightmove.

    The property is obviosuly under offer with one agent but the 5 others are still advertising it. I raised this with estate agent that I am dealing with and after discussing it with the vendor, they told me that he will only remove the property from the market once a valuation is done.

    My concern is someone could put in a higher offer in the mean time (while I am arranging the mortage) which will result in me losing my valuation and mortgage setup fees which are non-refundable.

    Is this normal? Should I go ahead or pull out?

    I will appreciate any advice.

    Thanks.

  • #2
    Re: Multi Estate Agents

    As an agent i always know who the other agents are, and when i receive an offer i will speak to the other agents and keep them up to date of any progress. If my client requests they will accept an offer with certain conditions, i would have this in writing. Then we can advise the buyer to act quickly. Good communication with all concerned is the answer. We always log everything down so we can go back to those involved if need be. Clients can still sell to someone else unfortunately if they wish or withdraw the property from the market.

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    • #3
      Re: Multi Estate Agents

      Hi Mohw99,

      What you can do is speak to the seller an ask for a lock out agreement where he agrees not have the property on the market for 30 to 60 days which allows you to get your mortgage and valuation sorted out for cash value as a gester. You can offer him 100 or 200 to agree to the lock out which he will not accept any other offers and take the property off the market for that time period.

      I know a couple of investors who use this strategy to secure the property and get their finance sorted. If you don't complete he gets to keep the 100 or 200 cash for his time and he could then put it back on the market. Make sure in the contract he returns your cash if he decide to put it on the market during the lock out period. Otherwise if he really wanted to sell he would wait for you if not move on, he is not the only vendor.

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      • #4
        Re: Multi Estate Agents

        This seller obviously wants to keep all options open and probably wants a quick sale involving so many agents. The newest agent was probably instructed before you put in an offer.
        Usually as already discussed the agents will be working with or at least communicating with each other. Often when I worked in a situation such as this they will share any commission, so it (hopefully) is in all their interests to ensure you are given time to organise your mortgage. Talk to your agent if you are worried, that's what they are there for. Good Luck!
        Looking for a large mortgage?

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        • #5
          Re: Multi Estate Agents

          As has been said above, the only way to have total peace of mind whilst you sort out your valuation etc is a lock out agreement. I would venture that the seller will want considerably more than one or two hundred pounds for exclusivity. Normally this would be in the thousands and would be called a non refundable deposit. Should the purchase go through, the deposit would then be taken off the purchase price. Best to have your solicitor quickly draft some terms, once agreed the money would then be held in the seller's solicitor's account ( never transfer it direct to the seller). Your solicitor should also put a clause in the agreement that states if there is a serious defect in the title or structure of the property then the deposit would not be forfeit if you withdrew from the purchase etc etc. Never do this if you are in a chain - you lose your buyer, you will most likely lose your deposit on your purchase.

          It is becoming more common ( particularly in London) to have these agreements. Bear in mind that if you have 5 estate agents marketing a property they will be classed as multiple agents, not joint agents. This means that they will be working against or in competition with eachother and not in cooperation with eachother. The agent that introduces the buyer gets 100% of the fee, it will not be shared. The fee is only shared when it is a joint agency ( usually only 2 agents). This means that the other agents will still be working just as hard to find a buyer from their books.

          The other option is to get a good mortgage broker who can setup your valuation within a few days!!!

          Good luck.

          Richard
          Property Buying Agent
          Follow my blog: www.thamesandchilterns.county-homesearch.co.uk

          Comment


          • #6
            Re: Multi Estate Agents

            The property will be sold to the buyer with the highest "offer" unless you get the vendor to do something. All the estate agenst will be scavenging around like the vermin they are trung to find a buyer so their firm gets the fat commission.

            You could even get involved in gazumping.
            Tell the vendor to withdraw the property from the market if he accepts your offer.
            In return you could agree to exchange in 28 days.
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            • #7
              Re: Multi Estate Agents

              You would put a formal request in writing to ask the vendor to take the property completely off the Market. Though the chances are they may decline if they're not 100% reliant on you buying their home.

              It's a huge flaw in the UK property system that the practice of gazumping is allowed to happen.

              I wish you the best of luck. Whatever happens, don't let emotion get the better of you and enter a bidding war.
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              www.FirstTimeBuyerGuru.com

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