Two Important Questions to Ask Before You Sign with an Estate Agent
In this three-minute read, we look at how to gauge if an agent is giving you an honest property valuation.
The first question a seller always asks an estate agent is: “How much can you sell my property for?”. The second is: “What is your fee?”.
This focus on price and fees makes perfect sense; understandably every seller wants to get the best possible property deal.
But before you jump in and choose an agent based solely on these two things, ask two more questions to determine if an agent is telling you the truth or a load of porkies.
Before you sign a contract, ask:
- If there is a tie-in clause in the contract? If so, how long is it?
- If you can terminate the agreement if you’re unhappy with the service?
Unfortunately, many sellers skip these questions, and it’s not until things go awry that they realise they’re locked into an unfavourable deal.
Tie-in periods
Some agents don’t do tie-ins at all, while others will ask that you commit to allowing them a minimum period, usually a few weeks, to market the property.
Other agents go so far as to lock you in for 24 weeks (with a 28-day notice period on top of that).
It’s up to you to decide what length of tie-in is reasonable – but make sure you understand from the outset what you’re getting into.
Overvaluing a property
It’s also worth questioning why an agent wants a 24-week tie-in. If they genuinely believe in their pricing strategy, why do they need nearly half a year to shift the property?
Unless, of course, they’ve deliberately overvalued your home to secure your custom. They know that eventually you’ll have to drop the price, but they don’t care – they’ve got you cornered.
The whole thing is a ploy to get your business. It wastes time and can jeopardise your next purchase, especially if you’re in a chain.
Bad service
Also, be wary of long notice periods. Some contracts not only commit you to an extended tie-in but require that you serve notice if you want to terminate.
So, you get to the end of a long tie-in, and think ‘hallelujah, I’m ditching these cowboys’ only to discover you’re still locked in.
Often, the longer the tie-in and notice period, the worse the service because the agent knows you can’t go elsewhere.
Top tips
- Always do your research before choosing an agent.
- Never sign a contract you haven’t read.
- Remember, you can negotiate tie-in periods. They’re not set in stone, even if an agent tells you otherwise.
- Go with a local agent with a reputation for excellent service and delivering on their promises.
From all of us here at MILLBANKS, thanks for reading.