Choosing an Estate Agent
A survey found that estate agents are less popular than used-car salesmen, double glazing salesmen and even politicians. People love to hate their estate agent, but much of this antipathy arises because of a widespread misunderstanding of the estate agent's role.
An estate agent has a commercial, ethical and legal duty to work on behalf of his client, ie the vendor.This means getting the best price for the property, negotiating terms that are favourable to the vendor and acting in accordance with the vendor's instructions at all times.
As the purchaser, you should expect estate agents to be helpful and friendly towards you in order to encourage you to view the properties that they have available. But, however nice the estate agent is, you must never forget that their job is to act in the interests of the other side.
Getting the Best out of Estate Agents
Estate agents are not on your side. The estate agent's job is to get the best price for the vendor. Nevertheless, in order to achieve this, estate agents need to be nice to purchasers so that they will view the maximum number of properties. There is a strong correlation between the number of viewings that are arranged on the property and the price that is achieved.
For your part you need to make friends with all the estate agents. By doing so, you will help to ensure that you are told about all the new properties that come up for sale.
How Estate Agents Assess their Purchasers
Even in a quiet market, estate agents are contacted by far more purchasers than they can service effectively. Most therefore operate a grading system to separate the wheat from the chaff. A typical grading system would work like this.
Grade 1 - hot
Definition: Purchaser is able to proceed with a purchase immediately. This means that you:
- are a first time buyer
- have sold your own property and have a completed chain
- are in rented accommodation
- are able to proceed without selling your current property.
If you fit into this category you should be told about every new property as soon as it comes onto the market.
Grade 2 - local vendors
Definition: Local vendors cannot proceed immediately because they have their own property yet to sell. If you are a local vendor it means that:
- You have a house to sell locally which is not yet on the market.
- Your house is already up for sale with another estate agent.
- Your house is already up for sale with the same agent that you are trying to buy through.
If you fit into this category you should receive good service from the agents that you contact. However, you should be aware that the agent's prime objective may be to persuade you to instruct them to sell your current property. You are not a hot buyer until you have secured an offer on your own.
Grade 3 - others
Definition: This category covers all purchasers who are moving from out of the area and have a house yet to sell.
If you are not yet in a position to buy, and have no property to sell that the agent can earn a fee on, you will not be a priority for most agents. Some agents will refuse point blank to register you as a buyer until you have got an offer on your own property. Others will register you, but refuse to arrange any viewings until you have sold. This can be extremely frustrating. However, you must see it from the estate agent's point of view. The agent knows that statistically 95 per cent of people who register from out of the area will never buy a property in their town. The only way to ensure that you are taken seriously is to secure an offer on your own property before you start looking seriously.
