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Understanding the Estate AgentEstate
Agents generally have a bad reputation. But consider how many other professions
would share their fate if they were constantly in the middle of the nightmare
that home buying often is. People
say that anyone can be an Estate Agent; that they're unqualified and their job's
a doddle. Well up to a point perhaps. But "never underestimate your enemy".
The good ones are very very good. The bad ones probably won't survive the first
recession. Like any humans, treat them positively, with respect and they're likely to respond more favourably to you than to someone who talks down their nose at them. Don't alienate the Estate Agent. They have some sway over their client and you don't want to be bad mouthed unnecessarily. Read
on:
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Like all professions, Estate Agents have various tricks of the trade, ranging from the moral grey area to the outright criminal. Here we list some of the more serious scams and what you can do to prevent them. The Scam: Deliberate Undervaluing / False Purchasing: The agent undervalues the property. If the seller accepts the slick assurances that this is the best they'll get, the agent quickly buys the property through a "friend". They then sell it on for its true value making a big profit. The Antidiote: Get several agents to value the property. They'll do this for free. You can listen to them all happily slag each other off. Those that don't are either well mannered or don't want to throw rocks in the greenhouse ie have something to hide about their own records. The Scam: Not passing on all offers: You give the seller's agent a backhander. They hold the property for you while you get your mortgage etc sorted. They don't tell their client about any other offers or interest. A variation of this is for the agent to open any sealed bids and bin the ones that are better than their briber. The Antidiote: - If you're selling: Get a friend to put in an offer - or a deliberately high sealed bid - and see if the agent passes this on. Properly recorded, these could prove that the agent is cheating you. The Antidiote: - If you're buying: You could approach the seller directly for example leaving a note in the door saying "I was just looking at your house again and really do love it. I do hope you're interested in our offer. We look forward to hearing from (their agent)." That way the agent can't get too angry with you. After all you're not trying to cut them out of anything but are just being keen… Put your phone number on the note, just ihn case. The Scam: Lying about the property: The sellers' agent will assure you, fro example, that planning permission for putting in the swimming pool (that's depicted in the brochure) or whatever - has been obtained. You go ahead on this basis. If you're lucky you'll have a good solicitor who will spot this and alert you. If not you'll sign up. Once you've signed, then that's the only agreement that counts. What the agent told you is basically irrelevant. They'll claim they told you they'd been mistaken but you wanted to go ahead anyway. You may have some legal redress but only if you're wealthy and have a few years to spare. The Antidiote: Don't believe the agent's word. Ask for written proof. If they put this in a letter watch out for caveats like "to the best of my knowledge" etc. Also make sure you have a good solicitor. Write to them with the outline of your intentions. Highlight the crucial points and double check it's all been covered.
Read
on:
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Who pays the Estate Agent?The Estate Agent acts for the current owner, the seller/ vendor, who would pay them a commission (i.e. a % of the sale price of the house) which can vary considerably - depending on what's been negotiated. The buyer does not normally pay a fee to buy a property through an Estate Agent. (For the Agent to charge both sides would be unethical). However it is in the agents interest to help you, as without you, the buyer, there's no sale and no fee to them. If you are selling your home via an Estate agent checkout this article in the Guardian about how different percentages are charged in different areas (eg London 2.5%, Newcastle 1%) and how little the agents seem to do for their money. The
Double Agents With house prices still soaring and properties virtually selling themselves thanks to insatiable demand, how much should homeowners be forking out in estate agents' fees? And can they possibly be worth it? ... Click
here to read the full article Read on: Beware Estate Agents Bearing Mortgages
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However the real reason to be careful is that they can coerce you into accepting "their" mortgage by threatening at the last minute to give the property to someone else. So you might end up panicking and taking a much more expensive homeloan than necessary. OK most Estate Agents aren't that bad but apparently it has been known to happen. If offered this "service" by the sellers agent you're probably best off making it very clear that you already have an independent mortgage broker on the case. You could innocently query the legality and their Trade / professional codes of your accepting this service from them - ie don't alienate them early on by putting them on the defensive: Put it in terms of mightn't you get into trouble... Note that since January 2003 anyone selling mortgages, including Estate Agents, needs to have taken an exam and be "CEMAP qualified". For further details, or if you're suspicious about anyone, contact the regulator, the Financial Services Authority Tel 0845 606 1234.
Related article Guide to How to Sell My Own Home
Read on about other ways to look for your home Estate Agents
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