Ten tips for choosing an estate agent

If you're moving house, make sure you follow these top tips for finding the right estate agent...

I’m currently in the process of selling my flat and buying a house. So one of the first things I had to do was find an estate agent who would help to sell my flat for a good price – and we all know how tricky that can be, particularly in the current market.

Of course, I could have gone down the non-estate agent route and tried to sell it myself through websites such as Tepilo and HomesOnSale. (Find out more in The cheapest way to sell your home.) The major advantage of doing this is that you don’t have to fork out on estate agent fees which can be very expensive.

However, as this was the first time I had sold a property, I decided to seek help from the professionals.

So if you too are planning to sell your house through an estate agent, just how do you go about picking the right one?

1. Get a recommendation

If you can, try to get a recommendation from a friend or family member. Of course, this will only work if your friend lives in the same area as you or if the estate agent has another branch near you – and that still doesn’t necessarily mean your experience will be the same as theirs.

However, it’s a good place to start.

2. Shop around

Estate agent fees can vary from between 1% to 3% of your sale price so make sure you shop around fully to compare them. However, cheapest doesn’t always mean best!

3. Negotiate

By obtaining a selection of quotes, you can then use these to do a spot of haggling with other estate agents to see if they will offer you a lower fee.

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That said, you don’t want to negotiate too much because if the fee is too low, your estate agent may lose motivation to sell your property – after all, effectively, they are losing commission.

4. Are they a member of the NAEA?

Check to see whether the estate agents you’re looking at are a member of the National Association of Estate Agents. This is an industry body that requires its members to adhere to a code of practice. If an estate agent doesn’t meet these requirements, it can receive a large fine or even be expelled from the organisation.

5. Be cautious about valuations

Ensure you get a number of estate agents to value your property. It’s a good idea to check out websites such as Nethouseprices.com and Zoopla so that you know roughly what your property is worth before you do this.

That way, you’ll know whether the price the estate agent is suggesting you market your home at is fair or not. Some estate agents have been known to undervalue homes for their own ends – perhaps because they want to make a fast sale for minimal effort.

On the flipside, others may overvalue it in a bid to earn a higher commission. But while you might be happy with this because you’ll also receive more money (although you'll be paying a higher fee), be warned that a high price could put off potential buyers and you may have to lower the asking price dramatically at a later date.

6. Find out about their experience

You should also check how much experience the estate agent has and what their knowledge of the area is like. Have they sold properties in your area before? How successful have they been? How many viewings do they typically get on a property like yours?

Believe me, this does make a difference. We ended up opting for an estate agent who had sold a flat two doors down and was based just across the road. The estate agent’s knowledge of the area and professionalism was far superior to another estate agent that was pretty clueless about the area and had no experience of selling properties in my part of town.

7. Find out how they plan to market your property

You’re paying for your estate agent – so make sure they are earning their money! Check how they plan to market your property. Do they have a strong internet presence, are they on the major websites such as Find A Property and Rightmove?

Will there be a floor plan of your property on the website (some properties I looked at had no floor plan which was very frustrating as a potential buyer)?

Will the estate agent personally show people around at every viewing or are they planning to leave you to do it? How much notice will they give you about viewings?

8. Read the terms and conditions

Make sure you read the terms and conditions of your contract carefully before you sign on the dotted line. Check how long you’ll be tied in for – estate agents require you to be tied in with them for a number of weeks, before you can market your house with a different estate agent (if you want to).

If the contract ties you in for more than eight weeks, go elsewhere.

You should also watch out for the words ‘sole seller’ – this means the agent is entitled to commission even if you sell your home privately. So don’t sign if you see these two words. Note that this is different from a ‘sole agency’ – which means you have agreed to instruct only one estate agent to market your home.

9. Watch out for added extras

If your estate agent is suggesting you use their in-house surveyor, solicitor and mortgage broker (for the property that you’re buying) be very careful. Estate agents will receive a commission for this, so they want you to accept their offer.

Don’t.

Do some research of your own and you’ll find a much better deal elsewhere. Don’t forget, you can talk to one of our own fee-free mortgage broker team via email, over the phone or even on instant messenger – just head over to our mortgage centre.

If the estate agent is very pushy you may want to go elsewhere.

10. Watch out for jargon!

Finally, watch out for estate agent jargon! Does the estate agent seem trustworthy and do you believe they will do a good job marketing your house? Do you believe everything they say is true?

If you’re being fed lines such as ‘I sold a similar property just down the road for £350,000 a few months ago’ when you know this is ridiculously high, or ‘We give preferential treatment to sellers who use our mortgage services’, steer clear!

This last comment is completely illegal, while the first comment can be confirmed by using Nethouseprices.com (providing you know where the property is). So keep your wits about you and don’t fall for estate agent twaddle! Good luck!

More: Ten steps for buying a mortgage | Buy your first home in four easy steps