Warning If Selling House!
#1
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Joined: Oct 2004
Posts: 16
Warning If Selling House!
Hello we are about to sell our property (all going well) via Haart estate agents. On signing the contract agreement we were told that commission is based on the price of the property.
Be warned this commission fee is not based as a percentage of the sale price but the original price as advice by Haart ie if they suggest a price of £105K and you sell for £99K or lower as we did the commission fee stays the at the same amount. This was not made clear to us before signing the contract. It is also not clear on the contract.
You could sell a property for £80K or less and still end up paying £2500+ commission - work out the percentage on that!
Selling is therefore a risk with Haart as they have no insentive to sell at the best price as they recieve the highest agreed commission no matter how low the price of your property sells for. Having a fixed fee would benefit the seller if the price of the property increased over the original price but that is rare these days.
If we were informed of this risk by Haart we would have never have agreed to sell with them and would have sought out a seller that charged fees as a percentage of the selling price.
Haart manager claims that they are the only agent that charges a fixed fee in this way, good luck to them!
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Be warned this commission fee is not based as a percentage of the sale price but the original price as advice by Haart ie if they suggest a price of £105K and you sell for £99K or lower as we did the commission fee stays the at the same amount. This was not made clear to us before signing the contract. It is also not clear on the contract.
You could sell a property for £80K or less and still end up paying £2500+ commission - work out the percentage on that!
Selling is therefore a risk with Haart as they have no insentive to sell at the best price as they recieve the highest agreed commission no matter how low the price of your property sells for. Having a fixed fee would benefit the seller if the price of the property increased over the original price but that is rare these days.
If we were informed of this risk by Haart we would have never have agreed to sell with them and would have sought out a seller that charged fees as a percentage of the selling price.
Haart manager claims that they are the only agent that charges a fixed fee in this way, good luck to them!
All times are GMT
next newest topic | next oldest
#2
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Joined: Apr 2005
Location: Gloucester
Posts: 346
Re: Warning If Selling House!
Originally Posted by Titchy
Hello we are about to sell our property (all going well) via Haart estate agents. On signing the contract agreement we were told that commission is based on the price of the property.
Be warned this commission fee is not based as a percentage of the sale price but the original price as advice by Haart ie if they suggest a price of £105K and you sell for £99K or lower as we did the commission fee stays the at the same amount. This was not made clear to us before signing the contract. It is also not clear on the contract.
You could sell a property for £80K or less and still end up paying £2500+ commission - work out the percentage on that!
Selling is therefore a risk with Haart as they have no insentive to sell at the best price as they recieve the highest agreed commission no matter how low the price of your property sells for. Having a fixed fee would benefit the seller if the price of the property increased over the original price but that is rare these days.
If we were informed of this risk by Haart we would have never have agreed to sell with them and would have sought out a seller that charged fees as a percentage of the selling price.
Haart manager claims that they are the only agent that charges a fixed fee in this way, good luck to them!
Be warned this commission fee is not based as a percentage of the sale price but the original price as advice by Haart ie if they suggest a price of £105K and you sell for £99K or lower as we did the commission fee stays the at the same amount. This was not made clear to us before signing the contract. It is also not clear on the contract.
You could sell a property for £80K or less and still end up paying £2500+ commission - work out the percentage on that!
Selling is therefore a risk with Haart as they have no insentive to sell at the best price as they recieve the highest agreed commission no matter how low the price of your property sells for. Having a fixed fee would benefit the seller if the price of the property increased over the original price but that is rare these days.
If we were informed of this risk by Haart we would have never have agreed to sell with them and would have sought out a seller that charged fees as a percentage of the selling price.
Haart manager claims that they are the only agent that charges a fixed fee in this way, good luck to them!
We were advised by our second agent (we ended up selling with the third) that they would never attempt to pursue a seller that broke the contract as they would lose loads of other customers and potential customers in the fall out.
#3
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Joined: Oct 2004
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Re: Warning If Selling House!
Originally Posted by Steve&Clare
only accept an offer through that agent if they agree to charge you on the sale price. In practice you can tear up the contract and go to another estate agent without fear of any comeback, we did this with our first estate agent and found out that they will not take any action for fear of negative press.
We were advised by our second agent (we ended up selling with the third) that they would never attempt to pursue a seller that broke the contract as they would lose loads of other customers and potential customers in the fall out.
We were advised by our second agent (we ended up selling with the third) that they would never attempt to pursue a seller that broke the contract as they would lose loads of other customers and potential customers in the fall out.
#4
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Joined: Oct 2004
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Re: Warning If Selling House!
Originally Posted by Titchy
We were under the impression that we were being charged on the final sale price as this is what we were told before signing the contract. If the agent had been clear and honest and told us that the if your sale price decreases our commission percentage increases as is the case here then we would have shown him the door.
#5
Re: Warning If Selling House!
Originally Posted by Titchy
We were under the impression that we were being charged on the final sale price as this is what we were told before signing the contract. If the agent had been clear and honest and told us that the if your sale price decreases our commission percentage increases as is the case here then we would have shown him the door.
#6
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Joined: Oct 2004
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Re: Warning If Selling House!
Originally Posted by moneypen20
I have never heard that! I have always been told that the rate is the proportion of the sale price. Any agent that tries that one should be told where to put their contract. I would go back to them and tear the contract up.
Apparently due to house prices falling more agents are charging in this way and relying on peoples perception of charges being of a percentage when it is not.
#7
Joined: Feb 2005
Posts: 151
Re: Warning If Selling House!
That is shit. Do you know I am absolutely sick of estate agents. Have been on the market now since beginning of Feb and had 1 viewer. Reduced by £10k and still nothing. They don't seem to give a stuff either. In all fairness to them, they are only gonna charge us .5% of the sale price which is all well and good but where are the f-ing viewers???????
Arranging for another agent to come and value. May as well go with someone else if we are gonna reduce again and pay more in fees.
Sorry to hijack this thread but when I saw the words ESTATE AGENTS it just made my blood boil!!!!
Sorry - rant over - thank you.
Arranging for another agent to come and value. May as well go with someone else if we are gonna reduce again and pay more in fees.
Sorry to hijack this thread but when I saw the words ESTATE AGENTS it just made my blood boil!!!!
Sorry - rant over - thank you.
#8
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Joined: Dec 2003
Location: Adelaide - South Australia
Posts: 1,820
Re: Warning If Selling House!
Originally Posted by Titchy
Too late, price for sale is already agreed we could refuse to pay but that would result in legal action that we cannot afford.
Apparently due to house prices falling more agents are charging in this way and relying on peoples perception of charges being of a percentage when it is not.
Apparently due to house prices falling more agents are charging in this way and relying on peoples perception of charges being of a percentage when it is not.
#9
Re: Warning If Selling House!
Originally Posted by Titchy
Too late, price for sale is already agreed we could refuse to pay but that would result in legal action that we cannot afford.
Apparently due to house prices falling more agents are charging in this way and relying on peoples perception of charges being of a percentage when it is not.
Apparently due to house prices falling more agents are charging in this way and relying on peoples perception of charges being of a percentage when it is not.
#10
Joined: Mar 2005
Posts: 2,027
Re: Warning If Selling House!
I know of Haart and this is their policy. Nothing illegal in it however, if you were misled as to what they were offering (and you won't be the first) they are a member of the ombudsman scheme for estate agents who can be contacted on www.oea.co.uk -
#11
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Joined: Apr 2005
Location: Gloucester
Posts: 346
Re: Warning If Selling House!
Originally Posted by Shelley29
That is shit. Do you know I am absolutely sick of estate agents. Have been on the market now since beginning of Feb and had 1 viewer. Reduced by £10k and still nothing. They don't seem to give a stuff either. In all fairness to them, they are only gonna charge us .5% of the sale price which is all well and good but where are the f-ing viewers???????
Arranging for another agent to come and value. May as well go with someone else if we are gonna reduce again and pay more in fees.
Sorry to hijack this thread but when I saw the words ESTATE AGENTS it just made my blood boil!!!!
Sorry - rant over - thank you.
Arranging for another agent to come and value. May as well go with someone else if we are gonna reduce again and pay more in fees.
Sorry to hijack this thread but when I saw the words ESTATE AGENTS it just made my blood boil!!!!
Sorry - rant over - thank you.