Selling a Home in UK
This section details the potential scams and unethical practices
to beware of when selling a property in the UK.
to beware of when selling a property in the UK.
Categories in section: Selling a Home in UK
| Viewings to Offer | Offer to Completion |
| Title: | Scam rating: |
|
Agent contract includes a ready, willing and able clause
Who is the Rogue?:
Estate Agent
How does it work?: If an agent finds a buyer willing to pay the asking price, the inclusion of this clause forces the seller to pay them commission even if they decide to not go through with the sale. How to avoid this scam?: Make sure you always keep your options open. Do not sign any contract with an Estate Agent that includes this clause. |
|
|
Gazundering: Buyer attempts to lower the sale price before exchange of contracts
Who is the Rogue?:
Buyer
How does it work?: Gazundering is legal as the buyer is under no contractual obligation to the seller until exchange is made. Certain unscrupulous buyers wait until the last minute when the seller is at the most vulnerable to revise their offer down. It is particularly problematic and dishonest when there is a chain involved and all parties stand to lose a significant amount of money and time. How to avoid this scam?: Unfortunately, there is not much you can do to protect yourself especially if you're caught in a chain. Refusing the revised offer may cost you not only the house you're selling but also the one you're buying as you may be forced to pull out. Bridging loans are very expensive and should only be used as a very last resort. |
|
|
Agent deliberately overvalues your property
Who is the Rogue?:
Estate Agent
How does it work?: Over valuing a property is often used as a tactic to get your business. After a couple of weeks of the property failing to attract any interest, the estate agent will advise you to drop the price significantly. You'll have lost alot of time and potentially money as the sudden price drop will throw up a red flag to potential purchasers How to avoid this scam?: Make sure you get several agents to give you a market valuation and compare it yourself to similar properties that have either sold or are currently up for sale in the neighborhood. Check out www.landreg.gov.uk for help on setting house prices. |
|
|
Agent makes up an imaginary buyer and offer
Who is the Rogue?:
Estate Agent
How does it work?: It works something like this. The agent puts forward an offer from an imaginary buyer in an attempt to stall the seller while a friend of his attempts to line up a mortgage. Nothing happens therefore for several weeks after the offer is accepted. Then the agent informs the seller that the buyer has pulled out but he has a backup option standing by. He then proceeds to negotiate a lower price to the property and introduces his friend as the new buyer. How to avoid this scam?: When you accept the offer, make sure it's in writing and includes the names of the buyer and his solicitor. Keep pressure on the agent to conduct new viewings until which time you feel the buyer is genuine and is committed to the sale. |
|
|
Agent asks for overinflated fees
Who is the Rogue?:
Estate Agent
How does it work?: As there is no industry fixed fee structure, Agents are free to get whatever commission rate they can from the seller. How to avoid this scam?: Always get quotes from several agents and where possible, play one off the other to get the best deal you can. Make sure you know what you're getting for your money (services, advertising clout...etc) |
Results 1 - 5 of 19