10 Things Most Estate Agents Won’t Tell You - Shane Ballard
Watch out for these points when signing an agency agreement with an estate agent.
I have been an estate agent for over 20 years. I know I don’t look that old, but it is true. Through my career I have worked my way through various roles, starting in London with a hugely successful independent, a national corporate where I was the manging director of nearly 100 offices across several leading brands, a regional director across Norfolk and Lincolnshire and finally a partner at The Norfolk Agents which is my favourite estate agency job ever!
Through my journey I have worked with some amazing people and businesses. In every role and business I have worked for, I have learned so much and continue to do so. However, I have also seen (and also continue to do so) first hand the dark side of estate agency where there are hidden and not talked about terms and conditions that are often tucked away or in the small print.
Below is a summary of the 10 things most estate agents wont tell you.
Enjoy, Shane!
10 Things Most Estate Agents Won’t Tell You
1. Length of Agreement
Why would any company who had the confidence and belief in what they offer ask their clients to commit to exclusive terms for 15-20 weeks, or sometimes even longer? If you deliver a fantastic service and results why would the customer need to go anywhere else?
Imagine signing up with someone for nearly half a year who then fail to impress on week 1!!! This week I have been to a customer who had been on the market for 1 year and wanted to re-list with The Norfolk Agents to be told by their current agent they have to give a further 28 days notice!
The Norfolk Agents have a two-week notice. If for any reason you are not happy with us you can leave.
2. The highest asking price does not mean you sell for more
We recently lost an instruction to another agent who valued the property £25,000 higher to justify their 1.5%+vat commission, 10 weeks later the property is still available, the seller has not had a viewing and the agents is pushing for a price reduction! Momentum is key, don't be fooled into an agent inflating their estimation on value to complement unnecessarily high fees. Typically, you sell for less in the long run. Rightmove will demonstrate the same!
3. Cooling off period
The time in which a client has the right to cancel, known as the “cooling-off” period, is 14 days from the day the contract is entered into providing the client is made aware of their right to cancel. It's not too late!!
4. Local Solicitors are a much better choice than online and in-house conveyancers
Our local solicitor recommendations are based on positive experiences. Our ethos is we only want to deal with fantastic people and only recommend anyone who does a great job for both our customers and us. One of the businesses I worked for the branch were rewarded more for in-house conveyancing than they were from selling houses. I always remember the one customer who drove from Hunstanton to Manchester as he could not get hold of his solicitor by phone or email!
5. “We can sell you property for more as we have a link to London and Overseas buyers"
Yes, all agents do! It is called the internet. I am yet to see any business have any advantage over another with the overseas and London buyers. Direct link to a London network? Again, it is called the internet. At The Norfolk Agents we have over 20,000 applicant contacts on our database, but the truth is most properties are more often sold from new enquiries which have been generated from the property listing on the property portals. Yes, some of those will be from London but many are from all over the UK and further afield.
6. Joint Agency
Most agents say this is a bad idea but perhaps they are just afraid of the competition? Is competition not a good way to ensure that you are getting the best price? We will happily back ourselves in competition with any agent. However, only if the commission agreement is 'winner takes all'.
7. Modern Method Of Auction
Modern Method of Auction can be a perfectly good and effective alternative route to sale. However, this works for some properties and situations, but certainly not all. Some agents are pushing Modern Method for every property they try and sell (SELL FOR FREE!!).
Sellers – be aware. It may be great that you are not paying fees. But someone is – the buyer! In most cases as much as 5%+vat of the purchase price which puts buyers off and significantly reduces your potential pool of buyers.
Sellers are you also aware that selling via auction is only really suitable for cash buyers!
We have a 95% success rate of selling in Auction because we fully understand the best and right properties for this route to market.
8. “We have a national network of offices”
Five of our team members have all worked for national estate agencies and quite simply, despite having offices all over the county and country, more often than not, they simply do not communicate with each other. In fact, they often compete against each other, I can remember working for a national corporate estate agent where one of the offices used to hide 'hot' buyers in fear of the individual losing their commission to another office!
9. Fees and Costs
Has your agent been transparent with all of their fees and costs? We advertise all our services and give the seller the choice of which package suits them. It is not the 1980's and selling a used car. Why is it that agents do not advertise their charges? Are you overpaying for your fees? Are there hidden marketing charges etc?
10. Fees Again
Why pay more when you can sell with The Norfolk Agents for as little as £1,500+vat? Or let for £750+vat?
I hope that you have enjoyed the read – any questions please give me a call: Shane 07940 926840
