Ninety per cent of lovemoney.com readers think estate agents aren't worth their commission. Check out these tips to make sure you don't get ripped off.
lovemoney.com readers really don't like estate agents. Earlier this month we asked for your views on the industry in a poll and you gave agents a big thumbs down.
Here are the damning results:
- 88 per cent of respondents used an estate agent when they last sold their home
- But only 37 per cent of those sellers thought their agent did a good job
- Only 10% of respondents think that estate agents are worth their commission.
Given those results, I was very interested when I heard that Sarah Beeny, presenter of Channel Four's 'Property Ladder', was setting up a website where people can sell their homes for free. It's called Tepilo.
In fact, I was so interested I went to Sarah's home to interview her about her new business. Watch the interview in our first lovemoneytalk video and we've also made a video called The estate agent debate where we look at the pros and cons of doing an online sale on your own.
I suspect that Tepilo is going to be a very successful site before too long, but I also reckon that a lot of people will want to stick with a traditional estate agent - at least for a while. (You could advertise on Tepilo and use an estate agent if you like. ) So I thought I'd put some tips together on how to get the best from an estate agent:
- Don't choose any old estate agent. Do some research. Speak to your friends and neighbours about their experiences with local firms.
- I'd only use an agent who is a member of a reputable trade body like the National Association of Estate Agents (NAEA.) Membership of the The Property Ombudsman scheme is also a plus as you'll then be able to complain against your agent should things go wrong.
- Get several estate agents to value your home before you sign up with one. Some unscrupulous agents have been unknown to undervalue homes for their own ends. If you get at least three valuations, the dodgy agent should be shown up. The valuation process will also give you a chance to get to know the agent. You could check to see if the agents' prices are in the right ball park by using sites like Nethouseprices.com and Zoopla.
- A dodgy agent might claim he's arranging viewings when he's doing no such thing. Guard against this by asking for details of each viewing - time and name of potential purchaser. You could also say that you or your neighbour might drop around for one of the viewings. No harm in keeping your agent on his toes.
- Check out our Sell your home goal. Selling a home is a major life event and can be scary, but we've broken it down into nine manageable tasks including one called Spot a dodgy estate agent. It's just the ticket for a house seller.
- Limit the time period of the initial contract to eight weeks or less. Then you can switch horses if your agent isn't delivering.
- Ask the agent how he plans to market the house. Agree how the agent is going to communicate with you. And how often.
- Read the small print of the contract carefully. If you see the words 'sole seller', don't sign. If the agent is a 'sole seller' he is entitled to commission even if you sell the home privately to a friend. A 'sole agency' agreement is different. This is where you have agreed to instruct only one estate agent.
And whatever way you choose to sell your home, good luck!
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