Graham88
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Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
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Basically means you pay the estate agent fees which is £2000+ vat or 2% + vat, whichever is greater. In my case it's roughly £200,000 so that works out £4000 + vat. Which is fucking ridiculous tbh not sure why I should have to pay it. But the annoying thing is the fact you have to pay out of your pocket you can't seem to put it onto the mortgage. Is there a way around it?
[Edited on 09-03-2014 by Graham88]
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AndyKent
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Registered: 3rd Sep 05
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Sale by tender doesn't automatically mean this is the case, just what has been agreed between agent and seller.
Only way round it is to decide what your offer would normally be, if you weren't paying fees, then deduct that.
Personally though, all this sealed bid crap is not appropriate for houses. Would imply some unusual problem with the house and why it can't be sold the conventional way.
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Graham88
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Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
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Seems to be something Ward & Partners do with most of their homes.
Fair enough don't really understand it myself as it must put so many people off. Easy to deduct 5k off what you'd offer but it still means 5k out of pocket. Don't get why you wouldn't just swallow the fees as a seller
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AndyKent
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Registered: 3rd Sep 05
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It's usually something more suited to farm and business sales, perhaps something the agent is more suited to?
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baza31
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Registered: 19th Apr 03
Location: yorkshire
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It's just another selling method which is generally better than auction .for eg they get two offers one at 180k and another at 195k , if that was auction and 1st bidders max was 180 bidder two would get it for 181 . It's doesn't mean the house is dodgy it's just different to the conventional way. As for 4k selling fees that's a joke .
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Graham88
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Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
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quote:
Originally posted by baza31
It's just another selling method which is generally better than auction .for eg they get two offers one at 180k and another at 195k , if that was auction and 1st bidders max was 180 bidder two would get it for 181 . It's doesn't mean the house is dodgy it's just different to the conventional way. As for 4k selling fees that's a joke .
Yeah I can understand that sort of bidding from a sellers point of view, it also stops a budding war aswell. It's the fees that are stupid like you say, still going to have another look at the place but offer 5k less based on the fees that need paid.
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Marc
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Registered: 11th Aug 02
Location: York
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I went through all this and ultimately didn't go ahead with it. Reason being they wanted a £6000 holding fee, which included their legal fees but no survey would be done until after the sale was agreed.
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JM_16v
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Registered: 17th Oct 05
Location: Essex Drives: GLC63S
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In the area I was looking at its a real sellers market.
80% of the homes on the market are sale by tender.
It worked out £8,500 for me to buy in the region I was looking at.
Its an amazing monopolisation of the market as only one estate agent is doing it but they got on average 100.2% of the asking price in Jan 2014. And sellers can sell there properties for £150.
As a seller would you go down the traditional route if you offered that?
Consumers (Buyers) have no choice but to accept as the housing shortage stock is short in the area.
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Graham88
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Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
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Basically had a chat with Wards today and they explained this a bit better. Say I wanted a house but wanted to keep the cash to spend on the house, if I was going to offer 180k, I'd offer 185k and state I want the owner to pay the fees. So technically I'm paying extra but it means it's on the mortgage rather than needing £4500 cash before you've even spent anything on the house.
Still a bit bullshit having to pay them but it has it's bonus in the fact that you cannot be 'gazumped' and so unless surveys or checks fail there is no reason the sale will fall through, you cannot be knocked off your perch basically
I'd prefer not to do it but the house we like is sale by tender so it is what it is
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Ben G
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Registered: 12th Jan 07
Location: Essex
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I'd prefer to do that to not have the worry about some billy big bollocks coming in and offering more.
Was a very stressful time from offer to exchange.
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John
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Registered: 30th Jun 03
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If that was all declared properly, I'm not sure the mortgage people would want to be paying the fees as part of the mortgage.
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Graham88
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Registered: 16th Apr 07
Location: South East Kent Drives: E46 M3
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quote:
Originally posted by Ben G
I'd prefer to do that to not have the worry about some billy big bollocks coming in and offering more.
Was a very stressful time from offer to exchange.
That's what I'm thinking, it seems frustrating effectively paying more, but unless something goes wrong on my end then nobody else can do me over!
quote:
Originally posted by John
If that was all declared properly, I'm not sure the mortgage people would want to be paying the fees as part of the mortgage.
It's technically no different to how it's normally done anyway? The sellers usually pay fees out of whatever money they get from the sale. So it would be all 'declared' and above board.
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