Just thought i would write a few words just to warn anyone selling there home in this current climate. The thing about this review is the fact that we all know times are hard and this is the last thing that anyone wants to happen. I am not going to mention company names but this is purely a warning about a certain type of selling agents tactics that can seriously back fire and end up costing you 10s of thousands of pounds.
I think the best way to warn people of this would be to tell you my story. Please believe me when I say I am not taken in lightly and have never been ripped of before. This is not a straight forward scam that costs you money straight away and in all honesty would not even be considered a scam by the authorities. THAT is the main reason I am writing this so people are warned of this type of practice.
At the Start of this year we decided we wanted to move so we put our house up for sale. We invited two estate agents to look over the house and give us there views as to what they feel it would fetch in the current market, one agent quoted £170'000 and another £180'000. I decided that the estate agent quoting £180'000 was being unrealistic and was only giving an higher price so we would go with them, That's the first lesson it's no good going with the higher price if it does not sell, That's not the big one. Anyway they put the house on the market at £170'000 and in the first week we had a few viewings, so thought everything was going well, however the estate agent said due to the current climate they had cut there advertising budget and would not be spending any money on advertising and would rely on custom coming to them through there site and shop doors. A result of this was that the viewings dried up and we were getting frustrated at the lack of anything happening. Then along came our night in shining armor, or so we thought so.
We were given a bit of an hard sell, but it was made to be believable, it's a new way of selling he said, but all our houses sell within a matter of weeks, because we already have qualified buyers with money. A lot of of clients are investor's looking to buy properties to rent. This was like an auction estate agent, what he said they do is to attract plenty of buyers is advertise the property at way below the market value and get buyers bidding against each other so you end up with a price near the price you are asking for and you do not have to accept any offer which is not enough. So I thought we have nothing to lose because we would just reject any offers that were not near the amount we at least wanted which was at least £160'000 and we were taking a loss on that from when we first bought if 4 years ago. Anyway to cut a long story short we did not get any offers near the price and thought it was a waste of time they put the house on for offers in access of £150'000. By this stage we had already decided to take the house off the market and leave it for a year while things picked up. However we then got a call from another estate agent a well known high street one, we told them we were taking it off the market but they said we should at least have a chat with them. So we thought why not?
So they came around and when we told them about the auction style estate agent they said I am sorry but we can't do anything for you above the price of £150'000. They said they have had quite a few complaints about such companies because the problem is that even though they say offers in access of £150'000 this information is used by banks and surveyors for house prices and it would now be impossible for anyone to get a mortgage on this property for more than the £150'000.
Now we are lucky as we do not need to sell and were taking it off the market anyway, but imagine someone desperate to sell and how much money they would have had to lose just to put it on the market with an normal agent. Well it certainly would limit you to what you could do and if you needed to sell you would lose thousands. The point is the guy from the auction estate agent obviously fed us a complete load of rubish and did not warn us of the price factor that we would not then be able to market at the price we were after if there brilliant idea did not work.
SO BE WARNED If any company like this say they can sell your house and get you loads of buyers bidding up to the price you want, be very careful because the price they start it at is the best price you will ever get if you stay in the selling market and they also go in at about 15% less than market value.
Anyway had to write this, just hope it pre warns someone of the pit falls of this type of company, which in my opinion is a disgrace.
If you felt this guide was informative please give it a vote below and please except my apologies for my terrible spelling.