πΏ Sellers: The Checks To Make Before Choosing An Estate Agent
β±οΈ 5-minute read
Most people choose an estate agent partly on a feeling.
Three agents come round. One seems the most confident, another suggests the highest price, and perhaps one simply feels like the best fit.
There is nothing wrong with that. Selling a home means working closely with an agent for several months, so liking and trusting the person matters.
But before signing an agreement, there are a few checks worth making too.
We are estate agents telling sellers to do them, and they apply to us just as much as anybody else.
π Is The Agent A Member Of A Redress Scheme?
Start with a basic legal requirement.
Residential estate agents must belong to an approved redress scheme. This provides consumers with access to an independent complaints process if something goes wrong and cannot be resolved directly with the agent.
The two approved schemes are The Property Ombudsman and The Property Redress Scheme.
An agent should be able to say immediately which scheme they belong to and provide evidence of membership.
It is a simple check, but an important one.
π What Does The Agency Agreement Actually Say?
This is where twenty minutes spent reading can prevent problems later.
Do not assume every estate agency agreement works in the same way.
There are several things worth checking before signing.
1. What type of agreement is it?
Sole agency, sole selling rights and multi agency agreements are different. In particular, sole selling rights means a fee is payble even if the seller finds the buyer independently.
2. How long is the minimum term?
A minimum period is not necessarily a problem. The important thing is knowing exactly what is being agreed to rather than discovering it when trying to leave.
3. What is the notice period?
Check how much notice is required and when that notice can be given. A minimum term followed by a notice period can create a longer commitment than expected.
4. When does the fee become payable?
Do not just check the percentage. Read what actually triggers the fee and ask the agent to explain anything that is unclear in plain English.
5. Are there any other charges?
Ask about photography, floorplans, EPCs, marketing costs, withdrawal fees and anything else that could become payable.
6. What happens if the agent is changed later?
Ask how buyers introduced by the first agent are dealt with. Depending on the circumstances and agreements involved, switching agents without understanding this can create disputes over fees later.
None of these are awkward questions.
A good agent should be happy to answer them.
π· Is The Fee Completely Clear?
Estate agency fees should be explained properly before anything is signed.
Check whether the percentage or fixed fee includes VAT and exactly what is included within it.
If there are optional extras, ask what they cost.
A cheaper fee is not automatically better, just as a more expensive agent is not automatically better. What matters is understanding the service being offered and the total amount that could become payable.
There should be no surprises at the end.
π How Has The Valuation Been Reached?
The highest valuation can be difficult to ignore.
If one agent suggests Β£400,000 and two others suggest Β£350,000, it is natural to prefer the first number.
But ask why.
A valuation should be supported by evidence. Look at comparable properties, what they actually sold for rather than simply their asking prices, current competition and what buyers are doing in the market now.
There may be a perfectly good reason why one agent values a property higher than another.
If so, they should be able to explain it.
A valuation is an opinion. The important part is the evidence behind it.
β³ Is There Pressure To Sign Straight Away?
There should not be.
An agent may naturally want the business, but there is a difference between following up and creating pressure.
Taking an agreement away, reading it properly and asking questions before signing is entirely reasonable.
If there is something in the agreement that is not understood, ask.
If the answer creates another question, ask that too.
Selling a home is too important to sign something simply because it feels uncomfortable to say, βI would like to read this first.β
π€ Who Will Actually Handle The Sale?
This is easily overlooked during a valuation.
The person who visits the property may not be the person dealing with the sale afterwards.
Ask who will arrange the viewings, provide feedback, negotiate offers and look after the transaction once a buyer has been found.
Also ask how communication works.
Will there be a named contact? How often should updates be expected? Who takes over if that person is away?
The relationship after signing matters considerably more than the valuation appointment itself.
π€ What About Solicitors And Mortgage Brokers?
Estate agents often recommend conveyancers and mortgage brokers, and a good recommendation can be genuinely useful.
But sellers should understand the relationship.
If the agent receives a referral fee for introducing a particular service, that should be disclosed.
A recommendation is also different from a requirement.
Sellers should not feel pressured into using a particular solicitor, conveyancer or mortgage adviser simply because an estate agent has recommended them.
π© What Should Make A Seller Stop And Ask More Questions?
Pressure to sign immediately is one.
So is a substantially higher valuation with little evidence to support it.
Vague explanations about fees, reluctance to explain the agreement, unexpected additional charges and evasive answers about redress membership should all prompt further questions.
None automatically proves an agent is unsuitable.
But when somebody is being trusted with what may be a homeowner’s largest financial asset, asking another question is rarely a bad idea.
πΏ Why Does The Ethical Agent Network Matter To Us?
There is a legal minimum that every estate agent should meet.
We think sellers should expect more than the minimum.
That is why we chose to join the Ethical Agent Network, a national network of independent estate agents assessed against standards covering honesty, transparency, service and the way people are treated.
Membership cannot simply be bought. Agencies are independently assessed and expected to continue meeting the required standards.
For us, that matters because homeowners should not have to work out everything about an estate agent from a valuation appointment and a glossy brochure.
But EAN membership should not replace the checks in this article.
Do them on us too.
Ask about our agreement. Ask about our fee. Ask how we reached the valuation. Ask who will handle the sale. Ask which redress scheme we belong to.
A good agent should not be uncomfortable with informed clients.
π‘ Thinking About Selling?
Choosing an estate agent should not come down solely to the highest valuation, the lowest fee or the best sales pitch.
Take a little time. Compare the evidence. Read the agreement. Ask questions.
The right agent should still look like the right agent once all of that has been done.
If a move is being considered, we are always happy to explain how we work and what would be involved before any decision needs to be made.
β Frequently Asked Questions
Do estate agents have to belong to a redress scheme?
Yes. Residential estate agents are required to belong to an approved redress scheme. The two approved schemes are The Property Ombudsman and The Property Redress Scheme.
What is the difference between sole agency and sole selling rights?
They are different types of agreement. With sole selling rights, a fee is payable if the seller independently finds the eventual buyer. The exact wording of the agreement should always be checked.
Can two estate agents charge a fee?
There are circumstances where disputes over two fees can arise after changing agents, particularly where the first agent introduced the eventual buyer. Check the existing agreement and understand the position before instructing somebody new. The most important thing is to understand what introducing a buyer means. It is not as simply as the original agent cunducting a viewing. They need to be shown as being influential in not only introducing a buyer to a house, but also influential in negotiating an offer or registering an interest in the proeprty on behalf of the viewer.
Should the highest estate agent valuation be chosen?
Not simply because it is the highest. Ask each agent for the evidence behind their figure, including comparable sales, current competition and buyer demand.
Does an estate agent have to disclose referral fees?
Where an agent receives a referral fee from recommending another service, such as conveyancing or mortgage advice, that commercial relationship should be disclosed.
Should an estate agency agreement be signed during the valuation?
There is no need to rush. Taking time to read the agreement, understand the terms and ask questions before signing is entirely reasonable.
If someone about to choose an estate agent would find this useful, please share it with them.
πΏ About The Ethical Agent Network
We are proud members of the Ethical Agent Network, a national group of independent estate agents committed to honesty, transparency, professionalism and treating people fairly.
Membership is independently assessed rather than simply bought. For us, it provides another layer of accountability alongside the legal and professional standards every estate agent should already meet.
When choosing an agent, ask questions, check the small print and expect clear answers. That applies whether the agent carries the EAN logo or not.
Sources: Consumers, Estate Agents and Redress Act 2007. The Property Ombudsman.
Thanks for reading
Michael

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