edders23 wrote:
Explanation of earlier post
Who decides what a house is worth ? or put simply the same bloke that "prices" the house also earns a nice fat commission from selling it and round here the estate agents are very flash with their cash and when someone set up in competition offering fixed price house sales (£499 all in) the lease on his premises misteriously got cancelled and he went out of business because he couldn't find premises to trade from !
it is also standard practise round here for certain major property owners to ALWAYS get information on business properties (and renovation/potential development sites) before they go on the market so there are NO commercial properties available to buy in the town just plenty available to rent from the estate agents or property "tycoons"
In earning a "nice fat commission," the inclination would be to advise asking lower prices in order to achieve greater volume. The market decides what any product or service is worth....It is only worth what someone else is prepared to pay for it. If you don't feel a product is cheap enough you don't buy it. Don't get confused between the price of property (eg £500,000) and the commission charged (eg 2% or in your example £499).
Generally speaking, the property market divides into two: Freehold and leasehold. Certain types of property, houses in particular, are more suited to being of freehold tenure. Flats, some shops and commercial properties are more suited to be occupied for a term of years or leasehold, primarily because of the split into a number of smaller units. But, someone still needs to hold the fee simple, or freehold. That person or company is usually an investor who is looking for a return on their money comparable to the return available in a building society but adjusted according to the level of risk. Once a lease is legally executed
by both parties there is a transfer of legal estate, enforceable against all comers. If, as you state, the lease mysteriously got cancelled, there was no lease. The transaction was not complete and therefore did not exist in the first instance. However, fixed price commissions are notoriously unpopular with the house selling public because the agent has no incentive to sell.
I hope that clarifies a few points for you.
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