When a vendors contract ends can I buy direct?

by Readers Question

17:09 PM, 18th December 2013
About 7 years ago

When a vendors contract ends can I buy direct?

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When a vendors contract ends can I buy direct?

I viewed a property which was up for auction on the 28th of November and did not sell. It was then put onto the market in a ‘modern auction’ which ends in 3 days time.

There appears to be little interest in the online auction which I expect this is due to the £5,000 reservation fee. Based on a property with a starting bid of £44,950 this is an enormous buyers premium.

So my question is; as I viewed the property through the agent, and at this point will not put an offer in, if it is removed from the market completely and I approach the vendor with a decent enough offer to be accepted would I be breaking any laws by doing so?

Or should I wait for a certain period of time before I make an offer?

I look forward to your opinion/advice on the matter. When a vendors contract ends can I buy direct?

Thanks

Scott


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Comments

Mark Alexander

17:11 PM, 18th December 2013
About 7 years ago

Hi Scott

Did you enter into a contract with the agent prior to the viewing? If not then I can't see that you would be doing anything wrong in what you propose.

You may find that the agent also has some sort of contract with the buyer but it would be pointless me trying to second guess what that might say or indeed whether it would be legal.

Good luck 🙂
.

Mick Roberts

7:26 AM, 19th December 2013
About 7 years ago

Done similar to this loads of times.
From what you’ve said & same as what Mark said, you should have no problem.
The seller may have deal with Estate Agent, that’s up to them to sort out afterwards.
You may cheese the agent off if u keep buying with them in future if they find out.
I used to get asked all the time, because I was knocking the vendor right down, they’d say can we exclude the agent, ie. withdraw house from sale, I buy it without agent knowing, to save them £1500ish as they was already reducing loads. I wouldn’t do this, as I got on with 95% of my agents & I NEEDED them for the next so many years & future to buy more cheap ones. I was always first one they rang with bargains, they’d recommend vendor selling to me rather than someone else, ‘cause I could complete within 3 days if they wanted quick sale, so I couldn’t poo poo on agent, as they was my best mate.

But if u not bothered about agent, up to u.

I bought one once that I didn’t know had previously been on with agent. She found out, I told her honestly din’t know it had been on with her, as if they had 100 houses on, I’d only know about the two bargains at any time. It wasn’t bargain when on with them. She din’t believe me anyway & on next house, she actually bumped me up about 3k more than she would have got it me for previously. So going being agents back could cost u in long run if u wish to keep buying.

Mark Alexander

7:52 AM, 19th December 2013
About 7 years ago

Reply to the comment left by "Mick Roberts" at "19/12/2013 - 07:26":

I know that sort of thing goes on Mick but it's actually very, VERY bad. The agent should be acting for the vendor and could probably be sued for being so underhand. It only takes one of their vendors to find out about things like this and kick up a stink and the estate agency business can collapse because nobody then trusts them to sell their properties for them. As a buyer of course, you probably don't really care about that.

I have seen this done very professionally by estate agents too. A really god example of this is that all the developers where my brother operates know that all the old people trust one particular agent to sell their tired old bungalow when they pop their clogs, downsize or go into a nursing home. They tend to be on large plots which are over-grown and the properties themselves need a lot of work doing on them.

The market for fully refurbished bungalows is very strong but only developers want them before they are done. The agents knows this and also knows there is good money in these deals for developers, hence they are usually sold on sealed bids for up to 20% above the listed price. The old folks and their families also know this and use that agent because rumour has it they usually get more than the property is listed for. Developers love them because they know they can turn a profit on the refurbs. The agents know which developers are ready, willing and able to do deals. If they don't know the person who is bidding they check their credentials first and submit offers to vendors with their recommendations including not only the price offered but what they know about the bidder. I know my brother has lost deals because he wasn't a cash buyer in the past but he's over that stage now.
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Mick Roberts

8:25 AM, 19th December 2013
About 7 years ago

Ooh yeah I know that, but when vendor needs VERY quick sale for whatever reason & quite often chain of 5 was collapsing ‘cause someone pulled out, & I was one of the few people in Nottm that could keep that chain going quick, they are acting for that vendor very well, aren’t they.

But also, as you say, I want a bargain & if they come to me first, I ain’t gonna moan.
I & probably others on here can tell u loads of stories, repossessions has to be advertised the once for 7 days etc., but my agents would make it nigh on impossible for anyone to view within 7 days & voila, the property is mine. I KNOW I KNOW don’t slate me, I best be quiet now, but this is all in the past ha ha.


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