Advice on selling privately....

[Gizmo]

We currently have an investment property which is listed for sale with an agent for a period of 12 weeks (10 weeks left to go).

There have been no offers on the property as yet. However my mother lives in the same street as the property and her neighbour noticed the sign go up and as she is friends with my mother approached her and asked if we would sell privately to her. She has never approached the real estate company or ever rang them at all.

What would be the best way to proceed from here? When we signed the listing agreement we didn't write into it that we also wanted the option to sell privately and in hindsight should have done this.

However if we were to withdraw the property from the market, and then sold privately to the neighbour, would we still be liable for the real estate agents commission even though the neighbour was never introduced to the property through the agent???

And if we do withdraw it, do we just lie to the agent and say we don't want to sell anymore or do we say we now want to sell privately and then have them get suspicious that we are doing the dirty on them (which we're not).

Your replies appreciated.

[xris]

And if we do withdraw it, do we just lie to the agent and say we don't want to sell anymore or do we say we now want to sell privately and then have them get suspicious that we are doing the dirty on them (which we're not).

.

Hello gizmo,

The answer to this last part is pretty obvious I would think.

I suggest you speak to the agent and tell him/her you have a private buyer who has come to you direct and identify that buyer. Then say you want that buyer noted as an exclusion to the contract. If the agency refuses say you will sell privately to this buyer once the agency has expired and then withdraw the property from the market, (or keep it on the market to see what else comes in - your call)

This is just one of those things. No need to be sneeky or assume the worst of the agent. They might feel annoyed, and quite rightly so, but if you try to be devious then nobody will win, least of all you.

Hope this helps.

xris

[ream]

...her neighbour noticed the sign go up and as she is friends with my mother approached her and asked if we would sell privately to her. She has never approached the real estate company or ever rang them at all.....[and] was never introduced to the property through the agent???

Surely if the neighbour found out about the property through the agent's sign, then she was introduced to the property through the agent - it's just that the agent doesn't know it? Maybe if your mother had mentioned it to her privately it would be different but IMHO the agent has actually got you this lead?

[Aston]

I don't believe what I'm reading here

her neighbour noticed the sign go up

Who was it who put the sign up???!!!

would we still be liable for the real estate agents commission even though the neighbour was never introduced to the property through the agent???

What???!!!

do we just lie to the agent

What???!!!

get suspicious that we are doing the dirty on them (which we're not).

WHAT???!!!

Aston

[ream]

And there was me trying to put it a bit more subtly

[OllyN]

Umm but..

I don't think an agent is automatically entitled to a commission just because they put a sign up.
They have to either quote the property direct to a potential buyer or physically introduce the buyer to the property by taking them to it. This may not apply to sole agency situations. The whole business of agency and commissions is a minefield as many of you will find out sooner or later.

OllyN

[Philmc1]

Ditto Aston

You employed an agent and signed an agreement and thus expected to pay commission - now it seems greed is setting in, but of course the private buyer will want to pay a figure that takes the absence of any commission into account.

Honour your agreement as you would expect others to. Two weeks is very little time on the market to say the agent isn't doing his job.

If the neighbour really wants the house they'll go to the agent. In fact encourage them to make an offer, it may just bring others out of the woodwork.

[k1w1]

Don't listen to all the touchy feely nonsense above. They're all probably agents :-)

One method that worked in the (distant) past, so may not apply now, but is worth investigating is this: Get the neighbour to advertise in the local paper in the Property Wanted section, and you reply to that advert. Obviously I don't advocate breaking the law, so you would need to check so see whether this is ok with your lawyer. It's may not be morally correct, but agents in glass houses....

Failing that, just wait for the agency to expire, then split the commission you would have paid 50/50 with the neighbour.

Unless of course the agency does bring someone to the table who wants to pay more than that amount, of course.

[xris]

One method that worked in the (distant) past, so may not apply now, but is worth investigating is this: Get the neighbour to advertise in the local paper in the Property Wanted section, and you reply to that advert. Obviously I don't advocate breaking the law, so you would need to check so see whether this is ok with your lawyer. It's may not be morally correct, but agents in glass houses....

What will this achieve?

xris

[ream]

You're not taking offence at being described as 'probably an agent' then xris?

[xris]

You're not taking offence at being described as 'probably an agent' then xris?

Not at all, I've been called much worse.

I'm just trying to work out what kiwI is getting at. It makes no sense to me.

xris

[ream]

I think they're trying to force a situation where the purchaser has 'officially' got in touch with the vendor to a private ad and can be seen to have done so. Although the vendor would still be bound by the listing contract which doesn't have any provision for them selling privately....?

[Traff]

Hi K1w1 surely this would mean you are trying to sell it privately if you answered the neighbours advertisement, and if Gizmo never put it into the contract with the agent to be able to sell privately then surely he wouldn't be able to do it.

If the neighbour is keen to buy the property privately then they will wait until the 12 weeks agents campaining has finished, or if they desperatley want it they will put an offer in through the agent.

[k1w1]

Yes, I'm sure you're right. As I said in my post, it was a long time ago that this option worked, so I am not surprised if any such loophole has been closed.

Give the agent a chance, I suppose. Still, I take every chance to screw them down - they've had it so good for so long I sometimes think they forget what it's like to work for a living.

[xris]

Yes, I'm sure you're right. As I said in my post, it was a long time ago that this option worked, so I am not surprised if any such loophole has been closed.

Give the agent a chance, I suppose. Still, I take every chance to screw them down - they've had it so good for so long I sometimes think they forget what it's like to work for a living.

And therein lies a bitter mind.