Skullduggery or clever stuff?

[Anonymous]

Last year I viewed a lovely old Grade 2 property for sale in our village. Decided it was too expensive etc so did not proceed.

As expected, and typically of this area, a Developer purchased the whole property and has divided it up into four well restored, well finished 3/4 bed properties with garden and garaging, three of which are nearly complete. Realising that there has been no advertising I found out which Estate Agent is marketing it and sent a friend in to 'case the joint'
He was told that 2 are available, one under offer, and one sold and that there are no details. A price was given for each of the two available .

Today, whilst peeking through a window, one of the builders came out and spoke to me saying that they are nearly ready. I got chatting and tried to find out his side of the story. He introduced me to the developer who told me which agent to speak to, but he would show me round if I had time, which I did not (unfortunately). When I got home I contacted the agent and made some enquiries and was told the same as before, EXCEPT that the prices are 30k more than my friend was given 3 weeks ago.

the Agent has arranged for the developer to show me round tomorrow.

So , how do I play this to get to the truth of the asking price?

As I have a property to sell first I would have to involve an agent, and, as I see it I could only do business with the developer himself if I had the money in the bank, which I don't)

Probably all a non-starter anyway, it's difficult selling to buy up here.

Jocelyn

 

[Anonymous]

It's a cliché, but houses are only worth what a buyer is prepared to pay. If you think it's worth 30K less, then offer 30K less—what's the worst that can happen?

The developer may be under contract to an agent, and so it may be unavoidable to go through them, but again, it's worth asking if they'd sell direct. That way they wouldn't have to pay commission, and so save themselves a good few grand, a saving they could potentially pass on to you.

Pete

 

[Anonymous]

you shouldnt have spoken to the agent yourself. they almost certainly have a clause in their ontract with the developer that means that they get paid if they introduce any buyer - even if the sale takes place without their involvement.

lots of agents make a big deal about how they manage and track potential buyers to make vendors think they are well organised and on the ball - reality is they make sure they have the details for everyone who looks or gets detasils sent so that they can claim commissi9on.

 

[Anonymous]

Generally, it makes no difference if you speak to the agent or not - estate agents terms usually say the fee is payable if either 1) they introduce a buyer who would have bought it (regardless of whether you decide to sell) or 2) the property is sold (no matter where the buyer came from).

Otherwise, why would they bother? People would just try to cut them out on all the easy deals and only leave them to struggle on the hard stuff.

You may not like estate agents but their job is to maximise the sales price for the seller - they are shopkeepers. I dont know why people think they should be the buyers' friend as well...

 

[Anonymous]

It's not skullduggery - it's what's called the "market economy". A house (or anything else) is worth what someone is prepared to pay for it. If lots of poeple have been showing an interest, the developer may have felt that he could tacke a few more thousand on the price.
Like anybody selling something, he wants to get the best price he can without actually turning buyers away.
If you're interested in buying, try offering a lower price and see what happens.
Good luck!

 

[Anonymous]

Thanks for your comments everyone. The asking price has now been clarifyed and is in fact the cheaper price. Pleased to say that the building has been beautifully converted and we are going to have a go. The Developer had already instructed the agents to sell and a sign went up just before i got there.

So it is likely to be a roller coaster -----sell to buy is not easy, and I am trying to stand back. ( how long for I do not know)-- surveyors, viewings, grrrrr.
Jocelyn

 

[Anonymous]

Just a thought, Jocelyn - what about letting your house and letting the rent pay the mortgage for the new one? That way you'd have a rather flatter roller-coaster AND the prospect of increased capital value of your rented house.

 

[Anonymous]

Thanks Moo,
I have put your piece of advice on to my list of 'what if's'. Have first viewing tomorrow.

Not so far away from you, will have to touch base when all this is done and dusted.!!

Jocelyn

 

[Anonymous]

Why not liaise with Gareth, and you can both come for some intensive Christmas Shopping Relief (we have a visitor's parking permit.....)