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Estate Agents: some of us still play with a straight bat
| Author: Craig Bees | Published: 9th April 2019 09:01 |
Craig Bees, MD Bartram & Co Estate Agents in Towcester
The Times newspaper this week accused agents of misleading sellers into paying higher fees under the headline “Estate agents dupe sellers” with a sub-heading “Owners misled into paying higher commission after properties overvalued”.
If you read the whole story the article is pointed toward a whole host of London agents and revolves around overvaluing a property to get the instruction and then pushing hard for price reductions throughout the agency period. Parts of the story are correct and other parts, as usual with some but not all of the media, are in my opinion a long way wide of the mark.
Overvaluing to get an instruction is rife throughout the UK. Most corporate and many multi-office estate agents employ ‘listers’, people whose job it is to win the instructions. These are often polished sales people who woo property owners with false promises of fantastic service, a quick sale and a high selling price.
Sadly, we know that if it seems too good to be true then it usually is and then you are brow beaten into continual price reductions until a buyer is found. Homeowners should remember that these ‘listers’ are only paid to win the instruction, not whether the property is sold as they have already been paid. The same goes for online estate agents - you pay them upfront so where is their motivation to give you the service you’ve been promised or indeed find you a buyer?
My second point is that if you are paying a percentage of the selling price in commission how can owners possibly be duped or misled into paying higher fees?
So here’s a checklist for making sure you are getting the best advice BEFORE you decide which agent to use in your sale.
- Unless you have used the agent before and trust them, get several valuations.
- Don’t always go for the highest valuation or the lowest fee. Look at the comparable evidence the agent provides and if they don’t or can’t justify the valuation, be very wary.
- Don’t agree a fixed percentage or commission based on the initial asking price. The fee should be paid only on the price the property sells for.
- Do not pay an ‘upfront’ fee as the agent then has no motivation to find you a buyer.
- Get valuations from experienced, reputable high street estate agents who know the locality and are active in the area.
- Ask to see a brochure from a similar style/type of house – and don’t accept a couple of tissue thick pieces of stapled A4 paper. Quality marketing is imperative.
These are just some of the factors that should be taken into account before selling what is likely your most valuable asset.
AND FINALLY, last year we valued a lovely property in Caldecote near Towcester. We were one of three agents to provide a valuation and, on this occasion, we advised an asking price £25,000 higher. The owner trusted our judgement as we provided evidence in support and they came to us through recommendation. Within two weeks we had secured a buyer at the asking price.
The point is that if you have trust in your agent, it is possible to achieve premium prices with the right marketing. We were by no means the ‘cheapest’ fee, but this very happy homeowner achieved at least £25,000 more for their home and paid £375 in additional fees.
And if that isn’t a bargain, I don’t know what is.
Until next time.
Craig Bees, MD Bartram & Co
E-mail me at craigbees@bartramandco.co.uk
Visit our website www.bartramandco.co.uk and follow us on Twitter@bartramandcotow
Tel: (01327) 359164
Fax: (01327) 359166
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