Choosing an estate agent can sometimes come down to a feeling. Three agents visit, one seems the most confident or likeable, or gives you the highest valuation, and suddenly there is a contract sitting on the kitchen table. But before signing, it is worth slowing things down.
There are a handful of simple checks you can make before choosing an estate agent, and they should take no more than 20 minutes. They apply to us just as much as anyone else. In fact, if an agent is uncomfortable with you making them, that tells you something too.
Is the estate agent a member of a redress scheme?
Start here, because this is not a nice-to-have. It is a legal requirement.
Under the Consumers, Estate Agents and Redress Act 2007, estate agents carrying out residential estate agency work must belong to an approved redress scheme. The two approved schemes are administered by The Property Ombudsman and Property Redress.
Redress schemes give consumers somewhere to take a complaint if an issue cannot be resolved directly with the agent.
Ask your agent which scheme they belong to. It should be a straightforward question with a straightforward answer.
Is your money protected?
This is particularly relevant if you are also a landlord.
In England, letting and property management agents operating in the private rented sector who hold client money are required to belong to a government-approved Client Money Protection scheme. The requirement has been in place since 1 April 2019.
Client Money Protection helps protect landlords and tenants if an agent cannot repay money they are holding, for example if the business goes into administration.
If an agent will be holding money on your behalf, ask which scheme they belong to and request evidence of membership.
What should you read before signing the contract?
This is where taking a little extra time can make a significant difference.
What type of agreement is it?
Sole agency and sole selling rights are not the same. With sole selling rights, you may still have to pay the estate agent’s fee if you find the buyer yourself during the agreed period.
How long is the tie-in period?
A minimum term is not necessarily a problem, but you should know exactly how long you are committing to before you agree.
What is the notice period?
Check when notice can be given and how long it lasts. Understanding both the minimum term and notice period gives you a much clearer picture of your overall commitment.
What triggers the fee?
Ask the agent to explain exactly when their fee becomes payable and make sure you understand the wording in the agreement.
Are there any additional charges?
Check for withdrawal fees, marketing costs or optional extras and ask for the total cost in writing, including VAT where applicable.
Could you end up paying two agents?
Potentially. If you change agents and a buyer introduced by the first agent eventually purchases your home, the terms of your agreements can affect whether more than one fee is payable.
None of these questions is unreasonable. A good estate agent should be able to answer them clearly.
What should you expect from a good estate agent?
You should expect a valuation supported by evidence, including comparable properties and relevant local market information, rather than simply being given an impressive figure.
Fees should be stated clearly, including VAT and what is included in the service. You should also understand who will handle your sale, how communication will work and what support you will receive once an offer has been accepted.
Most importantly, give yourself time to understand the agreement before signing. An estate agency agreement is a legally binding contract, so its terms matter.
Good communication should continue once your property is on the market too. That includes honest viewing feedback, even when it is not necessarily what you hoped to hear.
What are the warning signs when choosing an estate agent?
Be cautious about pressure to sign immediately, a valuation significantly higher than others without evidence to support it, unclear fees or reluctance to explain contract terms.
You should also be wary of being told that you have to use a particular solicitor, mortgage broker or other recommended service provider. You do not have to use a company recommended by your estate agent, and you should be told if the agent receives a referral fee from a company they recommend.
A professional agent should be comfortable giving you the information and time you need to make an informed decision.
Why did we join the Ethical Agent Network?
Everything above places the responsibility on the seller to work out which estate agent will treat them properly.
We think there should be another layer of reassurance.
The legal requirements provide important consumer protections, but meeting the minimum legal standard does not necessarily tell you what the experience of working with an agency will be like.
That is why we chose to become members of the Ethical Agent Network (EAN), a national network of independent estate agents assessed against standards covering areas such as honesty, service, professionalism and community care.
We would still encourage you to carry out your own checks before signing. Do them on us too.
There is another way
Choosing an estate agent is an important decision, and you should feel confident about who you are trusting with your home.
As members of the Ethical Agent Network, we have chosen to put our approach to the test through independent assessment.
If you would like to learn more about how we work, why we joined the EAN or what to consider before putting your home on the market, contact us today.
Frequently asked questions
Do estate agents have to belong to a redress scheme?
Yes. Estate agents carrying out residential estate agency work must belong to an approved redress scheme. There are currently two approved schemes, administered by The Property Ombudsman and Property Redress.
What is Client Money Protection?
Client Money Protection protects money held by relevant letting and property management agents on behalf of landlords and tenants. In England, agents in the private rented sector who hold client money are required to belong to an approved scheme.
What is the difference between sole agency and sole selling rights?
With sole selling rights, you can still be liable for the agent’s fee if you find the buyer yourself during the agreed period. This differs from a sole agency agreement, so check exactly what your contract says before signing.
Can I be charged by two estate agents?
It is possible in some circumstances, depending on the contracts involved and how the buyer was introduced. If you are switching agents, clarify how previous introductions will be treated before entering a new agreement.
What are the warning signs when choosing an estate agent?
Pressure to sign immediately, unsupported valuations, unclear fees, confusing contract terms and reluctance to answer reasonable questions should all prompt you to ask for more information before committing.
About the Ethical Agent Network
We are proud members of the Ethical Agent Network (EAN), a national network of independent estate agents assessed against standards covering honesty, service and how customers are treated.
If you are thinking about selling your home, take the time to check who you are dealing with and understand exactly what you are agreeing to. And if you know someone about to choose an estate agent, please share this guide with them.
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