House for sale with EA, offers coming knocking at the door

Just looking for a bit of advice here please. After trying to talk my wife into selling for the last 18 months, she finally came around to the idea 5-6 weeks ago, and we put the house on the market with a local EA. We priced it very competitively against other similar houses in the area, and we have had about 10 viewings (10 more than any other in the area apparently)

The offers that came in through the EA were too low for us to take (believe me im not one of the “will only sell for what is worth” crowd), however I have had 3 visits to my door asking me to sell privately. One of the offers is very close to what we can take.

My question is what would you do? … I think the EA has been sound with me, and dont want to just fuck him over. I also want to close as fast as possible and dont think I know enough to do it myself. However I do feel that I have done most of the negotiating at my front door.

I take it that the potential buyer only found out about your house because of the EA’s advertising?

If so then you owe him his fees.

The buyer is probably hoping that he can shave these fees off the asking price.

yeah they were shown around by the EA … I have already paid advertising fees up front

It doesn’t matter to a buyer whether there is an EA or not so it makes no sense that they are askiing you to sell privately.

I think, but am not sure, that once an EA has carriage of sale on your house then you have to pay the fees whether they came through the EA or the EA’s efforts or not.

As sound as he is, he’s an EA, i would be fairly certain he’s fucked people over before.
I doubt he would be so sound if you had zero viewings rather than 10.
Your loyalty is to you and your family, not to the EA.

Then he is being cheeky. Tell him that you signed a contract with the EA so you have to pay him. What are the fees by the way? 1%?

You should maintain direct contact with your buyer anyway because this can often speed up the transaction but I don’t see how you can suddenly make this a private sale if the EA has done their job and found you a buyer.

yeah I wasnt sure about this, but what about cases where some are selling with more than 1 EA … surely they dont all get paid?

I imagine that they hope to reduce the purchase price by the EA fees.

I think they do all get paid unless you have come to a specific agreement that they will be joint agents and who gets the sale wins.

yeah 1% … the problem for me is that if we are to take this offer, then I would need to borrow money to do it. me paying the EA 1% of sale means borrowing more …what about negotioating less than 1%? … anyone done this?

Could be that the potential buyers just dont trust the EA to pass on the offer…

Theres another thread about that somewhere.

yeah thats the impression i got

I negotiated with estate agent to .75. It wasn’t hard just I just asked what the fee was and then asked if they would reduce - they did straight away. Oh and don’t forget there is VAT on that as well.
I don’t know why your potential buyers want to skip the EA. They should realise the fee is paid by the seller, though I remember similar approaches myself when selling and the people made offers (lower than asking) direct to me that they must have thought the EA wouldn’t tell me about - which was true.

Although I’m sure they know I pay the EA, ultimately It is them that will pay as the figure accepted must take into consideration fees that have to be paid out.

I’ll just ask for a reduction in fees then i suppose

cheers all

I would say to your buyer, that even though they approached you directly, you still need to pay the EA. And ask them to split the fee with you - that might work. I was in a situation like this before, and the EA told us that if the buyer was introduced to the house as a result of their advertising (sign outside etc), then they were legally entitled to the fee.
Usually the EA’s fee is taken out of the booking deposit that the buyer pays to the EA. So say 5k is paid as a booking deposit (fully refundable) to the EA, then the balance to make up 10% is paid at contract signing stage, then the remainder at closing.
So you don’t actually have to provide cash to the EA at sale agreed point (you probably knew that already).

Say you accept the offer and cut the EA out then at the last minute “hey can you drop the price by x” – at that point you’re backed into a corner, I’d give their details to the EA and let him handle it that way he can go back to people who made lower offers and see if they will come up or you can accept the current best offer

I disagree with cutting the EA’s out because it now suits you. You approached them to assist you with selling the house and as such they have provided a service (advertising, attending viewings, handling offers). As much as I dont like them and I have very little sympathy for them in their current blight, i do not this it is right just to cut them out of the equation now that it suits you.

What happens if the potential bid falls through, will you go back to the EA for help selling again? I dont buy into this argument on they 8- us so lets 8- them back!

Irrespective of what you think of the EA you cannot cut him/her out at this point, if you do you are no better than the people described as chancer EAs on this and other forums. If their industry is corrupt then they need regulated and that is what needs changing because two wrongs dont make a right so dont become what you despise.

I appreciate your comments, but please make sure you direct any advice like this to the right person by quoting … i specifically siad i dont want to shaft the EA.

I also said I have already paid for advertising

My main points are:

The bidders dont seem to want to deal with EA
I dont want to pay full price for an EA to negotiate a price, when I have done part of the Negotiation at my door
I do not want to have to process the sale myself as I have no experience

I agree