Along with lawyers and journalists, estate agents are typically one of the most universally hated professions.
Unfortunately, if you want to get on the property ladder and progress up it, dealing with an estate agent is a necessary evil.
There are swathes of them to choose from – huge national networks of agents such as Countrywide, Your Move and Connells, down to local chains such as Marsh & Parsons, Dexters or John D Wood.
Choosing an estate agent can make a big difference to the price you get and the fees payable
There are independents that serve just one town and its surrounding area and more recently, there are a cluster of online estate agents, promising low flat fees in place of percentage charges that can spiral into tens of thousands of pounds depending on where you live.
Choosing which agent to sell your house through is therefore a bit of a minefield – national chains can vary in quality enormously depending on which branch manages your sale while even in small independents, the agent who becomes your liaison can make all the difference to the experience.
Fees also vary wildly – from £300 to 2.5 per cent or even 3 or 4 per cent depending on whether you opt to list with more than one agent.
To help you navigate the process of sorting the wheat from the chaff, we asked Paula Higgins, chief executive of the Homeowners Alliance, to answer our questions.
What makes a good estate agent?
Paula Higgins, chief executive of the Homeowners Alliance
PH: If you ask someone what’s the one thing they want from an agent it’ll be to sell their house at the very best price with as low a fee as possible. However, you’d be surprised at what can impact a seller’s decision.
A survey we recently conducted into what householders are looking for when choosing an agent found while fees was the most important factor, the agent’s fashion sense and phone manner were also key.
One in five respondents said they would be put off by flashy signs of wealth such as watches and a massive 93 per cent respondents saying that how professional the agent was on the phone was one of the most influential factors.
Over familiarity was also an issue, particularly for women with one in three stating they’d be put off by an estate agent calling them pet names such as ‘love’.
Where should you start when choosing an agent?
PH: Personal recommendations are always a good place to start. Friends and family will be able to give you an honest assessment of an agent (although bear in mind their property may be very different from yours).
Check an agent’s performance. Things like how quickly they can sell and how close they come to achieving asking price are obviously key factors
Check an agent’s performance. Things like how quickly they can sell and how close they come to achieving asking price are obviously key factors. EstateAgent4Me is constantly updated and will give instant results for the estate agents in your area.
Make sure the agent has experience in marketing properties like yours by checking what their current stock is like. There’s no point choosing an agent who excels at selling large country piles if you’re trying to sell a city centre apartment.
See how the agent is marketing other properties. What are the photographs and description like? Where is the property listed?
Never feel pressured into selling your home with the estate agent you bought your house from. Obviously, if you were impressed by how they sold your house to you, you can decide to go with them again, but if you feel another agent could do better don’t be afraid to go for them.
The estate agent market has changed a great deal in the past few years so it’s always worth shopping around – there is a big difference between the good and the not so good.
Narrow your choices down to a shortlist of about three and invite them to do a valuation.
Are the online agents any good?
PH: Online estate agents are much cheaper than conventional high street estate agents, with prices starting at around £300, which would be paid up front. As with any agent though quality and performance differs from agent to agent.
Research we conducted earlier this year found online agents tend to be more successful than average high street agents, achieving 95.85 per cent of the original asking price versus a national average of 95.69 per cent.
However, the top 1,000 high street agents in the UK continue to outperform their online counterparts. You can compare online agents here.
| Agent | Fee | Average percentage of asking price achieved |
|---|---|---|
| Yopa | £839 | 98% |
| Purple Bricks | £849 or £1,199 | 96% |
| Tepilo | £645, £895 or £1,295 | 96% |
| Hatched | £495, £895 or £1,695 | 96% |
| Housesimple | £595, £695 or £995 | 96% |
| eMoov | £795 | 96% |
| Doorsteps | £99 or £199 | 97% |
| easyProperty | £825 or £1,500 | 96% |
| Source: This is Money / Homeowners Alliance for % asking price achieved | ||
What is sole agency?
Most people opt to use just one estate agent when they sell their home as it is typically the cheapest way to do it. There is just one set of costs for the floorplan, photos and when the sale is agreed, only one set of estate agency fees to pay.
When an agency is your sole agent, fees are also usually lower than for joint or multiple agency. If they’re the only one acting for you, fees usually sit at about 1.5 per cent compared to 2.5 per cent if you opt to sell through two agencies.
Is multiple agency ever worth it?
PH: It can be. Generally, the more agents you have working for you, the more potential buyers you will reach, and you may receive higher offers as a result of this.
However you will be paying higher fees (around 2.5 per cent plus VAT as opposed to 1 per cent plus VAT), so this can be a bit of a gamble.
With dual representation both agents will share the commission so it’s important to make sure both are on board to avoid the risk of one trying to claim the full amount.
The best approach will depend on what type of property you have, as well as the state of the market. If there is a glut of properties on the market, with few buyers in your areas, it can make more sense to have multiple agents, however if there are few properties on the market and lots of eager buyers, then a sole agent is probably best.
What’s the best way to deal with agents?
PH: Stay in control of the situation. Remember to read the contract carefully and check your sole agency tie-in period and required notice period. According to our latest survey, some 70 per cent of homeowners admitted to not reading the fine print of their contract before signing on the dotted line, which can lead to problems down the line.
If you don’t understand something, ask, and if you are not happy in any way do not sign the contract.
Don’t be afraid to negotiate. Look at things like the tie-in period and the written notice period and ask for them to be changed if you’re not completely comfortable.
What signs could mean your agent is lying to you?
PH: The only real way to be sure that you are being given accurate information is to be well researched and know your stuff.
Agents know that one of the main reasons people pick them is the valuation they give and so will take one of two general approaches. Some agents will give you deliberately optimistic valuations, to make you think you can get a higher price with them, and then try and talk you down after you have chosen them.
Don’t be fooled by high valuations.
Make sure to do your research on how to value your home. The agent will come armed with evidence of local sold prices to support their valuation.
While you should take their advice, it is you and not the agent who decides what price to put the property on at.
If your agent is pressuring you to drop the price, what should you do?
PH: Getting the price of a property right can make all the difference to the prospects of a sale. The best way to ensure you have the asking price right is by combining online research with advice from at least three estate agents.
What should you do if the relationship breaks down?
PH: If you’re unhappy with the agent’s performance speak to them about the possibility of terminating the contract early. Estate agent contracts are legally binding which is why it’s so important to study them carefully.
Make sure there is a clause in it that gives you the flexibility to terminate without incurring a penalty, and go elsewhere if you’re unhappy with your agent and never agree to a tie in period of more than 12 weeks.
If you’re unable to terminate the contract at least discuss why things are going wrong and ask the agent to come up with some new ideas to market the property.
If you believe the agent has acted improperly complain to the estate agent using their internal complaints procedure.
Good estate agents should have their own internal procedure for dealing with complaints and they can hopefully resolve your issue.
The agent should also be a member of one of three redress schemes – The Property Ombudsman, The Ombudsman Services Property and The Property Redress Scheme.
If you’ve exhausted all options with the agent themselves you can take your complaint to the redress scheme it’s a member of which can help resolve the issue and instruct the agent to pay compensation.
