Poor Estate Agents – you have to feel a bit sorry for them sometimes, don't you? Well, they are consistently among the most unpopular people in the country, along with traffic wardens and the tax man. Recent surveys show that most consumers see estate agents as dishonest, untrustworthy, badly dressed and rude individuals. But the fact is, most of us will have to deal with them at some time or another, either as a buyer, seller or, most stressful of all, when you're doing both at the same time. Now, there are some bad apples that spoil it for the many – in fact, there are agents out there that pride themselves on their professionalism and great service. Likewise, there are other agents who don't make the grade – and in my experience, there are quite a few of those.
But if you know a few tricks of the trade, then you can play them at their own game, which means you save money and reduce your stress levels. So, here are my top ten tips for dealing with Estate Agents, and how to get the best out of them.......
What's Your Selection Criteria?
Whenever I advise people on selling their home, I always say that they should choose an agent who they feel comfortable with and, as far as possible, trust - remember, this person is going to be in your home showing strangers around when you're not there and ultimately, will broker the sale of your biggest asset. That means you need to find someone with experience in the area, who is polite and courteous to buyers, as well as being able guide you along a process which is invariably stressful. Don't settle for second best here – do your homework. I'd advise you call the agency that you are considering using and pretending you're a buyer, looking for a property similar to the one you are going to try to sell. See how they treat you – don't forget, estate agents make money from people who sell property, not the people who buy. It's the seller who pays the commission, therefore some not-so-good agents see buyers as 'tyre kickers' and one of a number. Now, these are the people who potentially may sell your property, so you want to make sure that they treat buyers – e.g. the people who may buy your home – with respect and courtesy. If, when you ring and pretend to be interested in buying something, you get a snotty and unhelpful response it's simple – find another agent. Don't forget, your estate agent is the shop window for your property, so you want the best. Bottom line – if you think the agent is an idiot, then what will your potential buyers think?
Estate Agents Over-Value Properties:
This is one of the first tricks in the book. An agent will come round to your house to value it – but essentially, he's 'bidding' for your business. So, he looks round the property, tells you how nicely it's decorated or how lovely the garden is, then proceeds to value the property at way over what you thought it was worth. You're so pleasantly surprised by his valuation that you instruct him on the spot, your thought process being, "Well, if he thinks my house is worth that money, then surely that's the amount he's going to sell it for." Wrong. What he's done is basically got you to sign on the dotted line, and in super-quick time. From here on in, the game is to get you to reduce the price to what he knows he can realistically sell it for, without you realising what he's doing. How does he do that? Well, not sending anyone around to look at the property for a few weeks is a classic trick. Sooner or later, when there aren't any viewings, you'll ring him up and ask him why there's no interest. He'll then say it's because there are loads of other comparable properties on the market, and so you may get somewhere if you drop the price slightly to be more competitive. See? Easy as that. Another way is for agents to encourage potential buyers to submit 'silly offers', in other words, a figure that the agent knows you won't accept, but it will make you believe that you need to drop the price to get a sale. To avoid getting stuck in the agent's trap, make sure you know how much your property is worth before you get an estate agent to come round and value it – check online to see what other properties sold for, and do your research in newspapers to find comparable properties and how much they are on the market for. The more informed you are, the less chance there is that a bad agent can pull the wool over your eyes.
Estate Agents Under-Value Properties Too:
You have to remember, estate agents are out there to make a living, and that they get paid commission when a deal goes through. If it's a tough month, and they don't have many deals on the table, the best way to get a property to sell quickly is to price it cheaply. That means there will be plenty of interest in the property and, therefore, it'll get snapped up faster than other properties of a similar nature but higher price. Which is great if you're an underperforming estate agent whose overdraft is looking a little large. A quick sale equals fast commission payment. Therefore, whilst you need to look out for agents that over-value your property to get you to instruct them, you need to also watch out for agents who under-value your property in order to get you – and them – a quick sale. Watch out for comments like, "We have a few properties like this on our books at the moment already, so Vendors are having to be realistic about pricing to be competitive" or another classic line: "The way the market is going, I really think that you need to be careful about pricing this, so it doesn't sit on the market for too long." If the agent says he has other properties similar to yours on his books – ask him to prove it, and also ask him how many viewings those properties have had and what offers have been made (if any). If the agent is telling you to price a property 'realistically', then do your research. Know what else is on the market with other agents and what the selling prices are in your area. And always, always get three agents round to value your property so you get a balanced viewpoint.
Negotiate The Fee:
As we know, estate agents work on commission. That means they are – in theory – incentivised to get you the best price for your property. Now, unless you decide to sell your home yourself, there's no way you can get out of paying the estate agency fees, but you can negotiate with them to make sure you're not paying over the odds. Most agents charge between 1.25% and 2%, depending on the value of the property. Some will charge only 1% if you decide to instruct them as 'sole agents' - which means you won't instruct any other agents or try and sell the property any other way, such as on one of the 'For Sale By Owner' websites. However, your best bet is to make sure that you get three agents to value your property – and crucially, for you to make sure that you tell them that you are getting three agents round so that they give you their most competitive rates right away. Once you've had the valuations back, you can begin to play one off against the other. If you can, get two agencies on the case – this is known as 'joint sole agency' - and negotiate them both down to 1% or 1.25% tops. Tell them that they've both got six weeks to get you an offer, and if they don't perform, you'll be reviewing your choice of agent. Make sure that you only sign up to a six week period –so read the small print in the terms and conditions to make sure that they don't stiff you for any commission after you've fired them. If they won't sign up to that – find another agent that will. Don't forget, the agent needs you and your property more than you need the agent!
Look for the OEA Sticker in the Window:
Most good estate agents are a member of the Ombudsman for Estate Agent's scheme. This is an independent body which is there to help solve any disputes that may arise when you're dealing with an estate agent. At the moment, it's a voluntary scheme, so by using an agent who is a member of the OEA, you know that the company is reputable and offers a good service – the OEA's Code is approved by the Office of Fair Trading, so you can be assured that the Code is consumer friendly. If you want to find an agent in your area who is a member, log on to the OEA's website at www.oea.co.uk for a register of members and more information about the scheme and how it benefits consumers.
Know the Rules around 'For Sale' Boards:
You don't have to have a 'For Sale' board outside your home, so don't be bullied by your estate agent to do so if you're not keen on the idea. On the other hand, boards do help get sales, so if you are happy to have one, then it's a good way of promoting your property. That said, there are laws around estate agent boards - the Town and Country Planning Act (TCP)- which state that you can only have one post with, at a maximum, two estate agency signs on it. That means if you instruct three agents, technically, only two can have a sign. This rule is regularly flouted – because, let's face it, a board in some pushy agents wanting as many boards in the neighbourhood as possible, it's up to you to make sure they don't break the law. If additional boards appear in your garden without permission – ring the agent concerned and tell him to remove his property immediately (make sure you also put it in writing, email is fine), remove it from your garden and put it in a safe place where you can keep it until they retrieve it. Once you've completed on the property, by law, the agent has to remove the 'Sold' board within fourteen days. Again, as it's free advertising very few do, but persistent nagging will yield results. Ultimately, if they won't remove a sign when you've requested, you can complain to your local authority Planning Office, who will enforce the law and can also fine the estate agent for breaking it.
What's their marketing strategy for your property?:
Let's face it, the main reason you're using an estate agent in the first place is because they will do all the advertising and get viewings on the property. But make sure that the agency you select is proactive at marketing properties on their books. How can you tell? Ask what property portals they advertise their properties on – it's the quickest way to get your property seen by thousands of prospective buyers. if they are on www.rightmove.co.uk – the UK's biggest property search website – and what other property portals they advertise their properties on. Rightmove.co.uk is the most viewed property search website, so you want to make sure that the agent uses it. Also, does the agency have a website of their own, and if so, is it good quality and easy to use? Check it out, and see how other properties are represented in terms of photographs, floor plans and details. Ask if the agent could organise an 'open day' for your home – this is when they arrange for prospective buyers to visit collectively on one day (Sunday's are good for this) and generally, the sight of other buyers walking around a house saying how nice it is usually prompts an offer and, in my experience, helps get you at least the asking price, if not slightly over. Other questions to ask are does the agent mailshot buyers on their books with new properties that they take on (this is increasingly done by email now, but some agents still use good old fashioned paper and stamps, which is fine), and also does the agent have any buyers currently registered who could be offered a 'sneak preview' of your home before it hits the market. This is another way to get a speedy offer, as if they like the property and know that, if they don't make a decision soon, other potential buyers will be able to book viewings, generally the buyer will act quickly to reserve the property.
Be Particular About Your Particulars:
You want to sell the property, right? So make sure that when the agent comes round to take the pictures, your property looks like a show-home. Tidy up and declutter the place, make the beds, pump up the cushions on the sofa, draw the curtains, mow the lawn. All sound obvious, doesn't it? So why do you see so many dodgy photo's of properties in their sale particulars? That would be because it's not the agent's job to pick your PJ's up off the floor before they take the picture – and by and large, they won't. They'll just point the camera and click. So it's up to you to be there and make sure that your photos look professional and highlight the best bits of the property. Don't be afraid to say if you don't think the pictures present your home in its best light. The great news is now, the majority of agents use digital cameras, so if you make sure you're at home the day the pics are taken, you can review them as you go round the house. Also, check the details of the property carefully after the agent sends them over for you to go through, and again, make any changes you feel are sensible. If you can get the agent to include a floor plan on your particulars, go for it. Buyers sometimes find it difficult to visualise room size and layout from a set of measurements, but with a floor plan, it's a whole lot easier.
Accepting An Offer:
By law, your estate agent has to inform you of any offer made on the property, even if they know you won't accept it. So, if the number that your agent comes back to you with is a bit insulting, don't shoot the messenger, he's just doing his job. However, sometimes an unscrupulous agent may encourage you to take a lower offer if either he overvalued the property in the first place to get the business, or he could do with the commission if the sale goes through quickly. So, again, make sure that you are totally aware of what your property is really worth and look online to see what other properties have sold for in your area recently, and also, what other properties are being marketed for. If the offer that has been put to you seems reasonable, then by all means, take it. If not and you smell a rat, then discuss with your agent why you should take the offer and see what they have to say. Ask if the potential buyer has no chain or is paying cash – these are quite desirable circumstances, so it may be worth negotiating on the offer if the buyer can move quickly. If you've taken my earlier advice and have two agents on the case, ring the other agent to tell them that you have an offer and tell them how much, and see what they have to say about it – if nothing else, it will light a fire under them and kick them into action to get you a counter offer at a better price!
Read The Smallprint:
The most important thing I can encourage you to do is read the 'Terms and Conditions' smallprint on the back of any paperwork the estate agent asks you to sign. Some unscrupulous agents will try to tie you in to them for as long as possible, so include in their terms and conditions clauses which aren't acceptable. A classic one is if you dis-instruct them, you cannot market the property with another agent for a certain period of time, say six weeks, and if you do and the other agent successfully sells your property, the agent you sacked is still due the commission payment you agreed. Another thing to consider is, if you are also going to have a go at selling your property yourself via a 'For Sale By Owner' website, you need to make sure that the small print on your estate agent's contract doesn't preclude you from doing so, or even worse, mean that you may have to pay their commission in the event you successfully sell your property yourself. Yes, it stinks and it's unfair, so make sure you read EVERYTHING they ask you sign carefully and without being rushed by the agent. If there's something you don't like or don't understand, talk to the agent and explain why and ask for them to change the terms for you. They can do – normally with the branch manager's permission. Make sure any changes to their documentation are initialled by both you and the estate agent and that you keep a copy. If you have any questions that the agent doesn't cover off for you satisfactorily, then talk to someone either at your local Citizens Advice Bureau (www.citizensadvice.org.uk) or, if the agent is a member, contact the Ombudsman for Estate Agents.
Now, I can't promise that you'll have a completely hassle free experience when you're selling your house, but if you follow my advice, hopefully you'll at least let the estate agent know that you're not going to be taken for a ride, and most of all, that they are going to have to work hard for you to get the best result. Happy haggling!