The Panorama Drama: What Buyers and Sellers Need to Know
The fallout from this week’s BBC Panorama TV show continues to ripple through the estate agency industry and among the public.
If you haven’t watched the programme, it featured a reporter going undercover for six weeks to expose unethical practices, including conditional selling (more about that later), within a corporate estate agency office.
It also contained complaints from sellers who felt let down by being overpromised and underdelivered by another corporate outfit.
Both the firms featured denied unethical conduct.
Now, let's start by saying that not all corporate agencies are bad, and not all local, independent agencies are good.
The world, believe it or not, is far more complex and nuanced than that.
In this instance, we can only speak for ourselves and how we do things.
We consider ourselves a reputable, honest, and local independent agency that always has our clients' best interests at heart. For us, your move is personal, not just a number on a spreadsheet or a mark on a sales targets board.
Below are four things we believe give home sellers and buyers the best possible chance of success.
These four tips can help you avoid some of the main issues revealed in the Panorama show.
1) Evidence-Based Valuations – The show featured complaints from sellers that their homes had been dramatically overpriced. Then they were told by the agency to reduce the asking price when offers, unsurprisingly, weren’t forthcoming. We only provide valuations that are backed up by comparable evidence from similar homes that have sold locally within the past 6-12 months. Tip: If your valuation seems too good to be true, there’s a 99.9% chance it’s false.
2) Conditional Selling – This was probably the most shocking aspect of the show. Conditional selling is where an agency tells buyers they will be prioritised if they agree to use in‑house services, such as mortgages and conveyancing. This is wrong on so many levels and is only done because some agencies make more money from selling subsidiary services than they do their commission for selling a property. We never do this. Tip: We can recommend mortgage people and conveyancers we know and trust, but it will never be a condition of a sale/purchase.
3) Fair Fee Focus – One of the drivers behind the urgent need to sell subsidiary services for some agencies is that they offer cheap commission (or even free!!) rates to entice people to instruct them. By charging a fair fee for a professional, personal service, we don’t have to resort to this tactic. There’s a saying among good independent agents across the UK that ‘cheap isn’t very cheerful, and free can leave you fearful.’ Tip: Rather than asking an agent ‘What do you charge?’ A more revealing question is ‘What can I expect from you for the fee you are charging?’ A good agent will clearly outline what you will get and how their fee is more than justifiable.
4) Term and Termination – When thinking of instructing an agency, ask for written confirmation of your contractual obligations around the length of the contract and the termination period. Some corporate (and, in fairness, even some independent agencies) want to get people to sign up for up to six months. In our opinion and experience, this is way too long. Tip: If an agent is very confident about selling your home quickly, why would they want you to commit to a long contract?
Buying or selling a home is a massive life decision.
Take your time when choosing an agent to represent you during the selling process.
Conduct thorough research, read reviews, and seek recommendations from family and friends.
Never feel pressured to use an agency’s subsidiary services, and always ask for the justification behind any valuation.
If you have any questions or concerns about matters raised in this article or anything else property-related, please don’t hesitate to contact us.
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