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Trust your agent October 2004
Almost
seen to be the choice between good and evil, selecting your estate
agent can seem a daunting job. Abigail Montrose
gives tips on how to make the best choice
The
easiest way to sell your home is through an estate agent. A good
agent should help you sell your home quickly, at the best price
possible and with the minimum of fuss. A bad agent won’t,
but will still charge you an arm and a leg, so don’t just
settle for any old agent.
Your estate agent should guide you through the selling process,
putting you in touch with potential buyers, solicitors and surveyors.
They should be on hand to offer advice, help you negotiate with
potential buyers and generally take the strain out of the whole
process. Many will offer advice on local storage facilities and
the presentation of your home, and some also have links with mortgage
providers and can steer you towards a lender if need be.
So how do you find the best one for the job? Estate agents do not
have to be registered to carry out business, which means anyone
can set themselves up as one. There is no shortage of horror stories,
so make sure you choose one who belongs to a recognised professional
association with its own code of conduct and professional exams.
For individual agents this means the National Association of Estate
Agents (NAEA). For details of members in your area, visit its website
at www.naea.co.uk.
Other recognised professional bodies include the Royal Institution
of Chartered Surveyors (RICS), the Architecture and Surveying Institute
(ASI) and the Association of Building Engineers. If your agent is
not a member of one of these then make sure the agency is a member
of the ombudsman scheme for estate agents, which has a code of conduct
and compensation scheme in place.
Valuations
Have three or four estate agents value your home; ideally
their offices should be within a mile or two of your property. Choose
agents who sell properties similar to yours and so have a good idea
of how much your home should go on sale for and what it will actually
fetch. They may also have potential buyers for your home on their
books and will know which features of your property to draw attention
to.
To find a good agent, ask around, says Peter Bolton King, chief
executive of the NAEA. “Reputation can be a great aid in selecting
an agent. If friends, family or neighbours have had a good or bad
experience with an agent, this can speak volumes. Additionally,
looking at the ‘sold’ and ‘for sale’ signs
around the local area, and advertisements for properties and companies
in local newspapers, gives an indication of which agents are a popular
choice for other sellers and the areas covered by these agents,
as well as an idea of the local market,” he says.
The estate agent should make a thorough inspection of your home,
noting details such as your heating system, windows and any special
features. They may measure rooms and will want to know about any
work you have had done or plan to do to the house. The agent should
then suggest a suitable asking price, which might well be higher
than the price they think you will actually sell for.
Local knowledge
While the estate agent is viewing your home, take the
opportunity to find out how long they have been in the business
and worked in your area. You want an agent who is knowledgeable
about the area and the type of property you are selling and who
has a shrewd idea of the sort of buyer that would be interested
in your home.
Good local knowledge of transport links, schools, leisure facilities,
shops, plans to improve the area and parking rules are invaluable
to buyers and are the sorts of things a good estate agent will know.
An experienced agent should also be able to advise you on the best
way of selling your home. For most people this will be the usual
private treaty method, but in some cases the agent might feel you
can achieve a better price at auction or through tender by sealed
bids.
Never choose an agent just because they give you the highest valuation.
Any agent can do this and you do not want to price your property
out of the market. Also, if you later have to reduce the price this
can send a negative message to potential buyers.
Similarly, don’t choose an agent just because they charge
the lowest fees. If one agent is charging less than the others,
find out why. It could be there are hidden extras. For example,
you may have to pay for ‘for sale’ boards, photographs
or advertising – all things that may be included in the costs
of another agent. Also, if an agent’s fee is very low, there
may be little incentive for them actively to sell your home. They
may just rely on a buoyant market, points outs Ian Lewin, South
East England regional partner of Haart, Europe’s largest independent
estate agency chain.
“In a sellers’ market people have taken a chance on
higher valuations and cheap fees because houses are selling. But
in a changing market you need to look much more at the estate agent’s
experience, their knowledge of the area, their back-up team and
their distribution methods,” he says.
Service
Be clear from the outset exactly what service your estate
agent is offering. Check who is to take potential buyers around
your home – you or them – and whether the agent conducting
the viewings is the one you meet. Richard Hair, president of the
NAEA and proprietor of Hair & Son estate agencies in Essex,
points out: “Different agents have different competences,
so don’t be surprised if one agent values your house and another
deals with viewings and the actual sale.”
Find out when viewings are likely to take place, if the agents work
at weekends and how much warning you will be given before a visit.
Decide if you want the agent to hold your keys and if so what security
measures they take.
To avoid a drawn-out sale, it is essential that your home be brought
to the attention of as many suitable buyers as possible. Find out
how the estate agent plans to do this. Will your home be advertised
in the agency’s window and in the local or national press?
How often will your property be advertised, and are there any extra
costs for this?
Internet
Increasingly, homebuyers are using the internet, so find
out if your agency has its own website and if it advertises on other
sites. Also check if it advertises all the homes on its book or
just a selection. Ask how the agent keeps in touch with potential
buyers. For example, Haart offers a text and e-mail service which
informs potential buyers of any new property going on its books.
“If you have 300 buyers registered at the branch, the computer
can notify them all at once, rather than our calling them individually,
when a new property comes on the market,” says Lewin.
A call from your agent once a week, to let you know of any interest
being expressed in your property, how many viewings have taken place
and what viewers are saying about your home, can be very useful.
It also lets you know if your home is being actively marketed or
if it is time to change agent.
Fees
Most estate agents work on a no-sale, no-fee basis. Typically,
fees are based on the selling price of your home and whether you
have a sole- or multiple-agency agreement. Expect to pay between
1 and 2 per cent plus VAT for a sole-agency and between 2 and 3.5
per cent plus VAT for a multiple-agency agreement. Occasionally
an agent will charge a set fee, and some agents operate on a sliding
scale, perhaps charging 2.5 per cent on the first £20,000
of a sale and 1.5 per cent thereafter. It is possible to negotiate.
With a sole-agency agreement you appoint just one agent to sell
your home. This limits the number of agents working to sell your
house but is cheaper. Often sellers appoint an agent on this basis
for a limited period (say six weeks), and if no buyer has been found
by then you could appoint another agent instead of or as well as
the original agent. If you go down this route, it is important to
avoid a long sole-agency agreement so that you can remain flexible.
You should also avoid sole selling rights. These entitle the agent
to a percentage of the sale price even if they are not responsible
for introducing you to a buyer. As ever, read the small print carefully
before signing any agreement.
Above all, choose an agent you trust, are happy to deal with and
who is helpful and competent. And remember, these relationships
work both ways. Be honest with your agent. Tell them why you are
selling, it could be because you are getting divorced or having
money problems, and this may result in delays or hitches in the
selling process. If you think there will be problems with the survey,
warn them in advance. Having relevant documents to hand –
such as a lease agreement, guarantees for work carried out and council
tax details – will save time all round.
And if your agent gives you some less-than-flattering advice, such
as telling you your house needs sprucing up, remember they are as
keen as you are to sell your home for the best possible price.
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