Dodgy Real Estate Agents

Math.round

I just lost out on bidding for a property. Even after my offer had been accepted by the seller, the Real Estate Agent was contacting others to let them know they could view and make offers on the property. I was outbid after my bid had been accepted by the seller.

It seems like every second person I talk to about buying property has a story about a dodgy Auctioneer/ Agent. I know of a local Agent who got caught out not reporting offers to sellers and instead snapped up properties on the cheap for themselves.

There seems to be little transparency in the Irish property market and Agents have too much power. I'm hopeful that we will get to a stage where the Seller has to accept an offer that matches the listing price.

Out of curiosity, has anyone had any interesting/similar experiences with Real Estate Agents?

Smee_Again

That’s not a dodgy EA, that’s an EA getting the absolute best deal possible for their client, the homeowner.

You were gazzumped, it’s annoying but nothing dodgy about it.

Math.round

Smee_Again wrote: »

That’s not a dodgy EA, that’s an EA getting the absolute best deal possible for their client, the homeowner.

You were gazzumped, it’s annoying but nothing dodgy about it.

I hear you! but maybe the fact that it's not considered dodge is part of the problem. The process and lack of transparency are my real issues.

Math.round

Math.round wrote: »

I hear you! but maybe the fact that it's not considered dodge is part of the problem. The process and lack of transparency are my real issues.

I think you have to consider the implications of you yourself being bound to a property once your bid is accepted, I suspect more sales fall through due to buyers pulling out than sellers.

Baby01032012

The property business has a long way to go but it has come along way with the property services regulations act 2011 and establishment of the licensing body the psra which established minimum qualifications, a register of licensed agents, 3 yearly audit of members, compensation fund and standardised documents such as a register of bids, engagement letters, advised market value all of which can be inspected by the psra at any stage.

Yes with limited supply and a frenzy of buyers desperate to buy with level 5 restrictions on viewings has driven the market and bidding crazy but the estate agent can not be blamed for this.

Just to note I’m licensed by the PSRA in my property role and also regulated by chartered accountants Ireland as I’m one of those too.

PommieBast

Math.round wrote: »

There seems to be little transparency in the Irish property market and Agents have too much power. I'm hopeful that we will get to a stage where the Seller has to accept an offer that matches the listing price.

My bugbear was bidding on properties that I later found out were never actually for sale, and I pulled out of two sale agreeds because of stuff uncovered by my solicitor.

99nsr125

PommieBast wrote: »

My bugbear was bidding on properties that I later found out were never actually for sale, and I pulled out of two sale agreeds because of stuff uncovered by my solicitor.

Like what ?

con747

You are living in Brown Envelope Ireland you know.

PommieBast

99nsr125 wrote: »

Like what ?

One was a house that turned out to be leasehold rather than the freehold the EA claimed it was, and for good measure the ownership documentation was also a mess. The developer had gone bust shortly after the place was built in the late-1980s and some stuff related to services had never actually been signed over to the council, which to me looked like an unbounded liability. The EA then tried to withhold my booking deposit. Pity really as the house itself was physically in good shape.

NSAman

Still don't understand why the EA doesn't have to put formal bids to the seller. Written down and transparent.

This BS of talking about it simply is a gazumpers paradise.

PommieBast

PommieBast wrote: »

One was a house that turned out to be leasehold rather than the freehold the EA claimed it was, and for good measure the ownership documentation was also a mess. The developer had gone bust shortly after the place was built in the late-1980s and some stuff related to services had never actually been signed over to the council, which to me looked like an unbounded liability. The EA then tried to withhold my booking deposit. Pity really as the house itself was physically in good shape.

Why was this an issue for you? Surely yours was not the only house to ever sell in the development?

NSAman

NSAman wrote: »

Still don't understand why the EA doesn't have to put formal bids to the seller. Written down and transparent.

This BS of talking about it simply is a gazumpers paradise.

From a sellers perspective, does it matter if the EA informs the seller verbally, digitally by email or in written form about bids. The EAs usually phone or text me with updates on bids.

C3PO

People seem to forget that the EA’s is appointed and paid by the seller - his job is to get the best possible deal for them.

LockedBoy

A couple of months back we were sale agreed on a property, booking deposit lodged with the EA, inspection done at 500 Euro, valuation for the bank done at 150 Euro, contracts supposedly in the mail to my solicitor - only for a new offer to be accepted by the seller. So frustrating, very poor form and we were out 650 Euro and back to drawing board :-(

PommieBast

Dav010 wrote: »

Why was this an issue for you? Surely yours was not the only house to ever sell in the development?

It made the property unmortgageable.

PommieBast

PommieBast wrote: »

It made the property unmortgageable.

That is strange. Leasehold agreements are usually for a nominal yearly fee over very long terms, and the Government introduced a way of converting houses from leasehold to freehold by buying the ground rent out. Lots of properties are leasehold. Also, I own a property in a fairly exclusive estate where the common areas were only recently handed over to the council, 16 years after I bought, during that time a good few houses have been sold/bought, they can’t all have been cash.

PommieBast

Dav010 wrote: »

That is strange. Leasehold agreements are usually for a nominal yearly fee over very long terms, and the Government introduced a way of converting houses from leasehold to freehold. Lots of properties are leasehold. Also, I own a property in a fairly exclusive estate where the common areas were only recently handed over to the council, 16 years after I bought, during that time a good few houses have been sold/bought, they can’t all have been cash.

I actually looked into the freehold buyout scheme but it was just one of several issues that would have needed fixing. I couldn't even quantify what reduction in my offer would offset the hassle and expense that sorting out all the problems would entail.

Thing is my very first question during my viewing was whether the place was freehold, and looking back I can't see how the answer could be anything other than a bare-faced lie.