In most towns and cities there appears to be dozens of estate agents, some big, some small, but all of which have one thing in common: they want your business! A lot of them are nice people, a few of them are sharks! So how do you go about choosing the right one or the best one?
Which One? Firstly, you will probably be aware, just from living in your area, which agent has the right profile for your property. You will guess that some deal better with the lower end of the market, some the middle end and so on. So this should help you reduce the list. If not, ask around; neighbours or friends may have sold or bought through an agent and everyone will usually have an opinion on an agent (hence this site!).
Check for local presence and this can be done through websites, boards, local papers and a seemingly endless supply of general advertising material that comes through your letterbox.
Valuations or Market Appraisals: What happens next? Well, your chosen few will come and have a look around your property and provide you either at the time or shortly afterwards with a value or appraisal (technically only a qualified surveyor can provide a “value”). Now, these are likely to vary; some will be cautious, some will promise you untold riches; so how can you tell which is right? Through comparisons, that is how. Interrogate the agent on how he or she got to that figure. All of us can be seduced by extra 10’s of thousand of pounds but it is not a real figure if the property stays unsold on the market and you are having to keep the place tidy for countless viewings which never come to anything… Use your own knowledge and common sense and look at one of a number of free sites that will actually give you comparisons of prices in your street. One of the best which is still free is www.nethouseprices.com
How much should I pay an agent? Fees will vary and part of this depends on which type of agency agreement you enter into (see below). However bear in mind that most agents are flexible with their fees to a greater or lesser extent. Most agents are paid on commission so it is not always the best idea to try and screw the least possible fee out of the agent since where does this leave his or her incentive? You could try and set up some sliding scale of fees with the agent so that the more the agent achieves for you, the more you get but the more the agent earns in commission.
Agency Agreements: Multiple agency, sole agency, joint agency or joint sole agency - the choice is baffling, or is it? Arguments, as always, for and against. Multiple agency means you pay a higher fee but have a number of agents battling away to sell your property; sole agency, a lower fee but all your trust is in one agent to do the job properly. And joint agency is somewhere in between with two agents sharing a fee (joint sole) or the winner taking all (joint). Probably our best advice is to get one agent started on a sole agency but restrict the amount of time given for these sole rights, leaving them enough time to generate interest. We would suggest that around eight weeks is currently long enough before involving another agent or agents.
Contracts: All agents will ask you to enter into a written contract. As always, be careful; restrict the period of sole agency or notice period. Some will try to tie you in for months but resist this. Two weeks notice should be fine and a period of sole agency should be no longer than eight weeks. They will argue for a longer period of notice since they are investing a lot into the marketing and advertising. You should argue if they are that confident, then they should not need longer. Remember you have to build a working relationship with agents. They are there to represent your interests, so you do need them on your side!
Unhappy? Unusual as this may sound, people do fall out with their agents (!). Have they just been poor at their service or with feedback or failing to deliver what they confidently predicted? Or is there some material naughtiness going on? If it is the latter then they may be covered by one of the professional bodies (NAEA, ARLA or RICS) or they may subscribe to the Ombudsman Scheme. Links below for various sites.