Choosing an estate agent
Knowing how to spot the good estate agents from the bad is not always simple and choosing the right company to entrust with the sale of your property can sometimes be a shot in the dark. However, arming yourself with the information below will hopefully make the task a little easier.
This article covers:
- Knowledge and expertise
- Weighing up the cost
- Placing your property with confidence
- How are you protected?
- If you are a buyer
Knowledge and expertise
Although it may be tempting to have a stab at selling your home yourself, a good estate agent will generally be able to obtain a higher price for a property than a vendor would chancing their arm. By employing an agent, you are also investing in the hours, expertise and negotiating skills necessary to sell your property.
When it comes to choosing the agent for you, have a look at which has the most 'for sale/sold' boards in your area. On visiting their offices, find out how long they have been in business - at least five years is a good yardstick; if they have polite, friendly staff, who are knowledgeable about the local area; and whether they utilise comprehensive marketing strategies like newspaper advertising, signboards, leaflets and the internet.
Invite three or four agents to value your property.
Talk to the agents, get a feel for the place and the people working there or pose as a mystery shopper. Put forward a few scenarios and see what they have to say. Compare the local agents and see who comes out best in terms of what you want.
Weighing up the cost
When it comes to the agent's fee (usually between 1% and 3% of the total sale price), don't automatically plump for the lowest charge. An agent who probably has the best ability to sell your property will have to carry the cost of well-maintained premises, experienced staff, efficient computer systems and professional advertising.
Placing your property with confidence
It's important to know any estate agent you use can be trusted. Look out for members of The National Association of Estate Agents (NAEA). The NAEA works to a voluntary code of practice.
The NAEA now operates a Technical Award, meaning there is a minimum entry standard for new members and this is driving up standards within the industry.
Also working to improve the standards of estate agencies is the Ombudsman for Estate Agents (OEA), which gives buyers and sellers improved access to redress in the event of a dispute with an agent.
How are you protected?
The Department of Trade and Industry is proposing a compulsory independent ombudsman scheme to give those who receive poor services from agents a chance to seek compensation, plus stronger powers for the Office of Fair Trading (OFT) to investigate and fine rogue agents. The OFT can, at present, ban people from acting as estate agents if it considers them unfit to carry on working. All agents must comply with the Estate Agents Act 1979 when acting for people who are buying or selling property. The Act doesn't cover the letting of properties.
Legislation is weighted in favour of protecting the seller against sharp practice. If you're buying via an estate agent, the Estate Agents Act offers the following legal protection:
· Although estate agents acting for sellers don't have to reveal defects in a property, they do have to answer buyers' direct questions accurately. If you're given false information, you might have a claim against the estate agent under the Property Misdescriptions Act. Sellers themselves are not covered by the Property Misdescriptions Act but if they give you false information about a property, then this may be a misrepresentation and you could seek damages.
· Estate agents must pass on your offer promptly - and can't hold back your offer simply because you don't want to use their other facilities, such as arranging a mortgage.
· An estate agent is not allowed to invent offers on a property in order to force the price up.
· Estate agents must use clear contract terms and reveal any financial interest that they have in a property that you're looking at.
If you are a buyer
As a buyer, it is worth remembering that estate agents there to arrange the sale of a property on the seller's behalf, since they make their living out of the commission they charge the seller. However, it is in their interest to make the process as easy as possible for the buyer, who they must ensure is in a position to get the funds for the property. If they do not have a mortgage, they can recommend a broker, building society or bank.
This article was last updated on 6th September 2006