Selling a property isn’t easy and it is natural to expect that your Estate Agent and solicitors have put your interest first.
It is true, a great Estate agent is worth their weight in gold. These are few and far in between because you don’t need any qualifications to become an estate agent. After politicians, journalists, car salesmen and bankers, estate agents are one of the most hated professionals – in top 10 according to CV Library’s research.
Sellers often question the true intentions of an estate agents. Is your estate agent working on your side or chasing their next commission? Can estate agents really lie about offers? Do estate agents have to pass on offers? We’ll tell you what to do if your estate agent has been lying to you.
Can estate agents lie about offers?
It is illegal for estate agent to lie about offers.
By lying to you, an estate agent can pretend that there’s lots of interest in your property. Estate agents know that you’d have to catch them lying about an offer and prove it for them to go to jail – and even that depends on whether Police wish to prosecute. It is against the code of conduct of the Property Ombudsman – this is the most well respected and well-known property redress scheme that good estate agents should be a member of. Remember that this membership is voluntary. It is likely that Ombudsman will take several months to investigate any complaints, and even then, they might just get a warning.
If an estate agent has been proven to lie then they could be expelled from the redress scheme. This doesn’t stop them from getting another job in another estate agency for example, start a new estate agent in their wife’s name – and start again.
Do estate agents lie about other offers?
Estate agents often make up a phantom offer, and provided there’s no evidence to catch them out, nobody will ever find out. Rules of the Property Ombudsman make it risky business to make up ‘fake offers.’
If an estate agent is lying to a potential buyer, he/she carries a small risk with the benefit being that buyer increase their offer to ‘match’ the new offer. However, an estate agent lying to a seller carries a higher risk of being caught as you may take them up on their offer.
What to do if an estate agent lies?
The best thing is to ask your estate agent to provide you with written offer along with proof of funds. This could be an offer along with a confirmation from a solicitor that they are acting for the buyer.
If your estate agent is reluctant to provide you proof of an offer then it is very likely that the offer doesn’t exist – and this is a phantom offer. Firstly, complaint to your estate agent and then forward it to the Property Ombudsman.
Does an estate agent have to disclose offers?
Yes, an estate agent is legally obliged to pass on all offers to the sellers that are made in writing – even if it is below seller’s expectation. This is to allow you the opportunity to say no.
Estate agents shouldn’t influence you if they have several offers. It is tempting for an estate agent to speak positively of a buyer who is using their inhouse mortgage broker or solicitors that pays them a commission.
It could be that an estate agent maybe “incentivised” by a buyer who really wants your property because he/she wishes to live next door to their mum. Estate agent may say to him/her that he can secure this property at lower price because the buyer is chain free, and hence get double the commission.
In this case, an estate agent would influence you to accept this offer, as it results in agent receiving a higher commission fee faster.
A buyer may ask you to withdraw property from market or stop you from accepting other offers by signing either of these agreements:
- Lockout agreement
This involves the buyer paying a deposit to your solicitor under the condition that your property will be withdrawn from the market and therefore, giving the buyer exclusivity to purchase your property within an agreed timeframe. This to stop any last-minute gazumping attempts.
- Goodwill agreement
A goodwill agreement is when both seller and the buyer will put down a non-refundable deposit when an offer is accepted and if either party was to withdraw, the other party will get to keep the deposit.
Before signing any agreements, always take independent legal advice.
How do you beat estate agents’ tricks?
It is not just offers that estate agent lye about. These are five common lies:
- Your property is popular!
If you have a vacant property to sell, an estate agent can get their friends/family to view your property and act as if they are interested in making an offer. This will make estate agent look great as they appear to be creating a lot of interest.
- Over valuing your property
It is a common lie that an estate agent will over value your property to win your instruction. Estate agent will show lots of enthusiasm because he/she is competing with other estate agents. One they win your instruction, they will start to reduce your asking price leading to disappointment, frustration, and delay.
- Encouraging buyer to use their wonderful mortgage broker or helpful solicitor
Estate agents get commissions for referrals from mortgage brokers and solicitors – and buyers are ‘encouraged’ to use their recommended supplier, as it will look good to the seller that you are using our mortgage broker or solicitor. This means that you as a seller potentially could be worst off as estate agent can refuse to pass on any higher offers to you.
- Lack of experience
Everyone has to start somewhere but often an estate agent can lie about their experience. To become an estate agent, you don’t need previous experience or qualifications. If your estate agent is lying about their experience, then give them notice and move on.
- Lies about offers
There’s no denying that any estate agent can lie about offers. Estate agent can lie about offers to push in the direction of a REAL offer so that they can get their grubby hands on their commission as soon as possible.
What to do if an estate agent lies?
If you have found that your estate agent has been lying to you then first thing you need to is to gather evidence. If it is in writing, all the better as verbal evidence won’t count. Once you have the evidence, put a complaint in writing to your estate agent – and while you are at it, serve notice to them so that they can stop selling your house.
Next you need to complaint to the Property Ombudsman if you remain dissatisfied with their response to your complaint. The Property Ombudsman will take several months to conclude their findings and will tell you if estate agent has a case to answer.
You could also leave them a genuine review based on your experience of their service. Reputation is big thing if they are a rogue estate agent. As a result, an estate agent might let you go out of your contract.
But none of these options will sell your property for you which is the result you are after. We can help you sell your property quickly, and at a fair price – without all the hassle of dealing with estate agents.
We do in an honest and transparent manner. Sell us your property.
One of the most common reasons you may want to learn how to sell your house without an estate agent is because you want to sell your house quickly.
There are likely to be many reasons that you need your house selling quickly, and an estate agent just cannot guarantee that speed for you. Although they can advertise and promote your property, they simply must wait until the right buyer comes along. Some of the most common reasons for a quick move include:
• Relocation- If someone needs or wants to relocate, then they may simply not have time to go through the long process of waiting for a sale.
• Separation- A separation or divorce can be a stressful time, and that’s before even considering selling a house. A fast house sale can help remove this tension and make life easier for those involved.
• Inheritance- Having an inherited house can be stressful to deal with, so a speedy and efficient service can help with this.
• Mounting bills- Often people will simply want a quick sale because the fees of selling another way are just adding up to the point where it can’t go on.
There are several options if you want information on how to sell your house without an estate agent. There is always the option of using an auction house, although this also has its downfalls. Another option is online property portals and sell house by owner websites, that offer the option of listing your home online for a fixed fee such as Purple Bricks. You will likely have to use their additional paid for services such as floor plans, professional photographs, and Energy Performance Certificate if you go with this option. You will also pay for services; they will advertise your property and wait for a buyer assuming it was priced correctly. This is not ideal if you need a quick sale! There are also various documents required to sell property, so you need to ensure you have these sorted.
It is worth conducting some research to find the best for sale by owner website. Alternatively, you could go with a cash buyer, such as Property Saviour, for a quick and hassle-free sale.
You too could sell a house with no kitchen or bathroom, just call us now on 0113 320 6700 or make an enquiry today, we are ready to buy your property today.
