Can estate agents buy their clients houses?
Discussion
I had assumed they had some legal or contractual bar to prevent this but I had a friend who worked in an agents office who (with a tap of her finger to her nose) told me the house she bought was never on the open market, and then when my wife-to-be sold her flat the agent tried to buy it himself. Recently 2 houses I have been interested in, at the same agent, have come onto the market and sold very quickly at a bargain price abefore I had had a chance to scratch my arse. I noted with the first one that the particulars said that the seller was a member of staff, but it came back on the market 3 months later at £100k more which was closer to market value, and quickly sold again. The same agent has just placed an 'under offer' notice on a place I had never seen on the market, which again looks like a bargain.
My paranoia or dirty dealings? I assume that if we wanted to bid on the last place they would have to tell the owner about the bid but given that it is unoccupied I am guessing we wouldn't get a chnace to look inside.
My paranoia or dirty dealings? I assume that if we wanted to bid on the last place they would have to tell the owner about the bid but given that it is unoccupied I am guessing we wouldn't get a chnace to look inside.
blueg33 said:
Yes as long as they are open and above board with the seller. What they can't do is buy by proxy.
I find that surprising in these days of scrutiny and professional standards. I would havwe thought they would be barred from doing so to avoid them undervaluing, putting off other interestyed parties etc.Cogcog said:
I noted with the first one that the particulars said that the seller was a member of staff, but it came back on the market 3 months later at £100k more which was closer to market value, and quickly sold again.
I do not thing it's right but it does happen, a lot I think.Given the agents choice between a £50k quick profit and doing 'the right thing', you have one guess as to which one they'll choose.
The only way to beat them is to join them, developers who are not agents will know agents well enough to get offered good stuff before it gets marketed. This works 2 ways - if a developer can pay cash there and then it's good money for nothing. The long term answer is to set yourself up as an estate agent!!
anonymous said:
[redacted]
There is plenty of regulation covering estate agency business, the fact that it is used so rarely and ineffectively is where the problem lies.Also suggesting that every other old granny who sells a house is likely to get stitched up is a huge overstatement. I am not doubting it happens, but not as often as you propose.
anonymous said:
[redacted]
The Estate Agents Act is quite clear on all of this, so there is legislation to enforce.They can take payments from both sides of a deal as long as it is declared to both parties.
Like any profession, some rotten apples make the profession look bad, but most are not shysters. I work with agents daily and the odd bad apple only gets to do one deal with me, so its generally a short sighted strategy.
Simpo Two said:
Just like in any business where commission is involved, salesmen will sell the product that makes them the most, whether it's houses, cars or financial services. You can regulate it as much as you like, but commission will always bend the true picture IMHO.
Actually you can apply that to any business which charges it's customers a fee. Most, if not all people get three valuations so anyone looking to tie up a quick sale would be outed very quickly...
I am in the process of buying a clients property but only after it has been marketed for a while and they approached us to find them a buyer quickly.
Most people will say they "have no idea what their house is worth" until you tell them a figure less than they wanted...a bit like people with their part exchanges in a garage, nobody ever has "any idea what their car is worth" at least until the dealer gives them a figure!
All agents need to belong to a Goverment approved redress system now.
I am in the process of buying a clients property but only after it has been marketed for a while and they approached us to find them a buyer quickly.
Most people will say they "have no idea what their house is worth" until you tell them a figure less than they wanted...a bit like people with their part exchanges in a garage, nobody ever has "any idea what their car is worth" at least until the dealer gives them a figure!
All agents need to belong to a Goverment approved redress system now.
davidjpowell said:
If an Estate Agent or one of their relatives (I forget how closely this is defined) puts an offer in, they must disclose their profession to the vendor.
A prudent Vendor would then make inquiries to satisfy themselves that the price is right etc...
The definition is a "Connected Person", this includes relatives, friends and business associatesA prudent Vendor would then make inquiries to satisfy themselves that the price is right etc...
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