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Asking this on behalf of a colleague.....
Ever encountered a situation where an FA (working as a Mortgage Adviser in a particular estate agent's office, not a big chain) is capable of acting as the ‘price negotiator’ for a seller’s agent?
Curiously, the seller’s agent is (naturally enough) the estate agent, and they share an office.
Seems a bit ripe to me?
My colleague is talking to both of them- Estate Agent is the sellers agent, but in the office is an FA who's advising them on their mortgage- and saying that she'll deal with the Estate Agent to get them a good price.
Scotland, I should say. Iffy? When I last bought a house, my lawyer acted as my agent- and did help with advice on price etc.
If a solicitor in Scotland is acting for both the seller, and the buyer, they're liable to be up before the Law Society. Distinctly unethical and will/should end in rap on the knuckles at the least.
Yes, your solicitor may advice on pricing, local conditions, tactics, and may sort out a mortgage - but someone acting for or with the seller's agent?
Different when it's Estate Agent and FA, but sounds odd nonetheless.
So is the FA handling the negotiations between the estate agents who act on behalf of the seller and potential buyer (i assume this is your colleague)?
Fatladridesbikes- yes, thats my understanding:
-estate agent is acting as sellers agent
-FA is somehow acting as my buddy's agent, in that she's offered to get him the best price by negotiating with the estate agent
-EA and FA share an office- I'd imagine the FA rents a desk.
Ok there is nothing to stop this happening and in fact it can be quite common practice with some agents, this isn't to say it's right.
It is unlikely that the FA will be able to get a better price for your mate on the property but they are just trying to tie him to using the agents advisor on the basis that "I got you a good price on the property on the basis you use me for the mortgage"!
If i were your mate I'd also be wary of someone who knows what the maximum I can afford to go to and who relies on the agents who are selling the property he is looking to buy negotiating a price for me because your bargaining position is compromised. It's like playing poker with your cards face up on the table while everyone one else holds theirs close to their chest!
Data protection act should apply but won't cover this I'm afraid.
To be fair if this is the only way the FA can get clients to use him then there is something wrong with him and/or the agents. It's underhand but does happen and currently if people are stupid enough to believe that the FA will get them a better price then buyer beware. Again I'm not saying it's right but there is very little protection for buyers when it comes to agents trying to keep everything in house.
It's an area that keeps on being bought up as unfair but no one seems willing or able to do anything about it.
This is all said as an FA of 15 years who relies on agents passing me business and NEVER having had too resort to these sorts of tactics!
Tell your mate to deal with the agents directly himself and use who he feels comfortable with for the mortgage and legal work.
Good luck 🙂
Thanks!
Interestingly, over the course of the afternoon he's had 3 conversations with the FA:
-the first was my mate instructing them to make an offer about 7.5% under the requested price (which, to be fair, was 'offers over' a price)- this was swiftly rejected by the seller
-next, my mate offered about 3% below- same result as before
-he's now on tenterhooks waiting the outcome of the 3rd call to the FA- where he instructed them to offer £500 over the 'offers over' figure.
I asked him a few mins back whether at any point he'd indicated to the FA that he was ready to pay full price....turns out he did, at some point in a discussion with the FA yesterday.
On the bright side, he really likes it, can afford it, and it doesn't look priced over the odds.