An estate agent is the most common way to buy and sell property. They can take a lot of the stress out of the process. Find out how estate agents operate. There are some differences across the countries of the UK, so it’s important you check.
What’s in this guide
- What do estate agents do?
- Estate agents and fees
- How to deal with estate agents when buying
- Keep on top of the process when you’re house-hunting
- Questions to ask
- Making an offer
- What is a sealed bid and how does it work?
- Selling with an estate agent
- How to complain about an estate agent
- Other ways to buy and sell property
What do estate agents do?
Shop around
Some estate agents might recommend mortgage brokers, surveyors or conveyancers to you.
You can speak to them, but you don’t need to use their services.
It’s always worth shopping around, as the savings can be significant.
Estate agents market and sell property, but they also:
- deal with paperwork
- monitor the chain (of buyers selling their old home and sellers buying their new home)
- liaise with your solicitor
- negotiate with buyers and sellers.
Estate agents do not deal with surveys – you’ll need a surveyor, but they might have partnerships in place to recommend a surveyor to you.
How long does it take?
There’s no set timescale sale or purchase of a house. Buyers and sellers have different needs and issues can pop up and cause delays.
Estate agents and fees
If you’re buying a property there should be no estate agent fees involved.
If you’re selling, you will usually pay between 0.75% and 3.5% of the selling price to your estate agent. Some online estate agents offer a flat fee for their services. It could save you money, but you’ll have to pay it even if your home doesn’t sell.
Shop around, and negotiate once you’ve found an estate agent you’d like to work with.
Check the fee includes VAT or you’ll need to add another 20% to the price of the fee.
How to deal with estate agents when buying
Keep in touch
Stay in regular contact with your estate agent, so they think of you when the perfect property arrives on the market.
You can register with several estate agents.
To choose which will be best, look at the type of properties they offer, their fees (if applicable) and speak to friends and family for recommendations.
Keep on top of the process when you’re house-hunting
Make a note of conversations you have, including who you spoke to, the date and time.
This keeps you in control and is a useful reminder of what’s been discussed and agreed.
Questions to ask
First-time buyers
If you’re a first-time buyer with a ‘mortgage in principle’, make sure you mention this when you meet sellers as it puts you in a strong position to move things forward quickly.
When a property catches your eye, don’t be afraid to ask lots of questions.
Asking the right questions now might save you a lot of money in the future.
Estate agents have a duty to be truthful so grill them for details.
This is not a time to be shy. Ask questions such as:
- How long has the property been on the market?
- Are there any works expected on the property?
- What will be included in the sale? (White goods? Curtains? Light fittings? Furniture?)
Making an offer
It’s not too late
You or the seller can pull out at any time before the exchange of contracts takes place.
Your offer should be:
- Subject to contract (STC) – the final sale takes place only when contracts have been exchanged.
- Subject to survey – this allows for the cost of any faults or issues to be taken into account once your surveyor has checked the property out.
Once your offer has been accepted, make sure the estate agent has taken the property off the market and is no longer advertising it for viewings.
If someone else is interested and views it, you risk someone else coming in with a higher offer, which is known as gazumping.
You should receive a letter from the estate agent confirming your offer. If you don’t receive this then make sure to ask for one.
Find out more in our guide Home-buying process: steps to buying a new house or flat in England, Wales and Northern Ireland
What is a sealed bid and how does it work?
Making an offer with a sealed bid, where the price offered is secret, is normal practice in Scotland but not so common elsewhere.
Sealed bids are not legally binding.
Outside Scotland sealed bids are usually only asked for when there is competition for a property.
Potential buyers will be given a guide price, and it’s expected their sealed bid will be higher than this.
- Feel free to ask the estate agent for advice on what to bid, but remember they are working for the seller, not you.
- Avoid rounding the figure you offer. For instance, if you think the property is worth £250,000, you could put in a sealed bid for £251,500.
- Let them know how quickly you can move.
A date is set for sealed bids to be received, either by the estate agent or seller’s solicitor – they’re usually opened at the same time.
The successful buyer will then be told they have the winning offer.
Selling with an estate agent
Once you’ve decided to sell using an estate agent, choose one by asking questions about their track record in selling properties like yours.
Find out how they intend to market your property online, as this is where many people start their search. And remember, there will be a fee involved. Check the listing once it’s online, if they’ve got details wrong about your house or flat it could put buyers off.
How to complain about an estate agent
If things go wrong, you have the right to make a complaint. Talk to your estate agent first, raise your concerns and give them an opportunity to respond.
If you’re not satisfied with their response you can get in touch with the property ombudsman who covers your agent.
Other ways to buy and sell property
Selling online
There are websites that will help you find a buyer, or sell your property, saving you a considerable amount of money.
For sale listing services only, remember you’re responsible for:
- putting up the ‘For Sale’ sign and adding your phone number
- taking interior and exterior photographs
- negotiating on price with potential buyers
- showing potential buyers round your property
- organising Energy Performance Certificates (EPCs)
- providing details and dimensions about the size of rooms.
Online selling costs vary between websites, so make sure you’re clear about what you are getting for your money. You might also be charged whether you sell your property or not.
Online estate agents must be members of a professional regulatory body
The Property Ombudsman
Ombudsman Services: Property
Auctions
This can be a popular (and quicker) way to buy or sell properties that might need refurbishment or have been repossessed.
As a buyer, you’ll probably pay a 10% deposit with the remainder payable within 28 days so you’ll need to have money ready.
Remember there will be other costs to consider such as entry fee for the catalogue and auction, commission, solicitors fees and survey costs.
