Choosing An Estate Agent
Few home buyers, home sellers and tenants seem to understand how their agents work, what qualified estate agents can and can’t do for them, and who pays whom. Since agents can make or break a deal, you owe it to yourself to understand how they work. You have a vast choice of agencies to choose from some of whom are exemplary while some are outright scoundrels. How do you make the right choice?
Reputation
Word of mouth is by far the best method of finding a good agent – ask family, friends and trustworthy neighbours who have had first-hand experience. Although estate agents aren’t regulated, reputable ones generally affiliate themselves with trade associations that enforce a strict code of practice. Always check their membership through the respective association’s web page. These trade bodies offer sound advice and assistance in the event of a disagreement with your agent since their aim is to ensure that their members provide a high service level to UK buyers and sellers.
Each of the below-listed web sites has a search facility to enable you to find a registered agent in your area.
Location
Choosing an agent from the area you are interested in is particularly important if you are buying and selling property. Knowledge of their market and their clientele allows them to give you a reasonably accurate assessment of what price your property will fetch (and what you can expect to pay). Here I need to stress the importance of experience - experience gives them the insight be to able read more from a given situation than you as a layperson can.
Interview
Question the agent to understand how they work and what you can expect. Here are some guidelines for questions you need to ask;
- How long have you (or your company) been in business? Young, enthusiastic, dedicated agents spend more time concentrating on you but it is important that they have experienced mentors from a reputable, established business.
- References - Many agents have written letters – but rather ask for a list of satisfied clients – and call them!
- What is your best marketing plan or strategy for my needs?
Seller – where and how often will the property be advertised, ask for examples of all media i.e. flyers, online and print.
Buyer – do they have an extensive range of properties to show you, how will you compete with other buyers, what happens with multiple offers, who will present my offer to the owner?
- What top 3 things do you differentiate yourselves from other agents?
Top agents will not hesitate to state that they are honest, trustworthy, excellent negotiator, accessible, good communicator, assertive, cheerful under pressure.
- May I see any relevant documents upfront – before I need to sign them
- What are your fees?
Are they open to negotiation, particularly if you will buy and sell your home/s with them.
- What haven’t I asked that I need to know
There is always something else you need to know – pay close attention to the answers.
Window Shopping and Shopping Around
Check what other properties are being marketed by the agent. Are the properties similar in price to the property you are selling or interested in buying? Avoid agents that specialize in a different section of the market to what you are interested in.
How many properties have been sold – this will give an indication of the property turnover. As a general rule; the higher the advertising spend, the more exposure you will have to potential buyers and the quicker you will sell your property.
Visit a number of agencies in your preferred area – check fees, and obtain appraisals of your property. Be cautious of the agent whose evaluation is much higher than the others; there needs to be a convincing explanation.
While fees are important, one of the biggest mistakes a seller makes is choosing an agent based on costs alone. Some agents compete on price alone since they do not have the competitive edge on service, knowledge or negotiation skills. However, if the overall market is slow, many agents will resort to pricing tactics.
Compatibility
By now you should have a gut feel about the agent – how easy and forthright did you communicate? Did you get along with them – you will spend a lot of time together so this is important. This gives you a taste of things to come – if you had to drag information out now it will be even more difficult further down the line. If you are selling your property, consider how potential buyers will react to the agent as well.
Interview more than one – this will give you ideas to cross-question and ask for personal guarantees. If the agent won't guarantee performance and release you from a listing on request, do not hire that agent.
Results
If the agent has done their job properly and the property is priced correctly, you should get an offer within the first 30 days. If the price is too high, you may not get any viewings at all.