Let's clear up some common misconceptions about estate agents
It's fair to say that, in many people's opinion, the reputation of estate agents is generally quite poor. Most of us will have heard a horror story or two over the years, but is this reputation fair?
There are laws and regulations in place to protect all parties involved in a sale and ensure that everything is above board, so how come we hear so many tales about how estate agents have done something shady?
When you sell a property, you are dealing with many different issues - finding a new home, making the most of your equity and how much money you have to buy a property, and the upheaval of moving your family and belongings to your new house. Tensions are high, and there are stresses and frustrations around every corner.
It's little wonder we can have negative feelings and memories about the moving process. But why is it the agents that get the blame? It is likely because the agent is the linchpin in a sale process - they have contact with all parties involved. They are usually accessible to ask for advice and updates regularly.
There are many myths that people hear and perhaps believe about estate agents that simply shouldn't happen. At the very least, it is a case of a few bad apples in the industry clouding the reputation of the other great estate agents around the country.
- "Inventing" interest: It has been said that buyers feel as if agents are lying if they are told that there has been lots of interest in a property, even if they are informed of viewing appointments that have happened or are scheduled into the diary.
- Fabricating offers: If an offer has been made on a property, whether accepted or not, it is confidential. An agent can disclose that there has been interest and offers made but not the offer's value. Because an agent can only share some information, it can seem flakey, and perhaps there are no other offers.
Fundamentally, these myths come down to money, whether someone feels that the agent is trying to force them to pay more for a property or to feel as if they have to pay more because of the urgency involved from other interested parties. The distrust grows because the agents cannot be completely transparent about interested parties, viewings and other offers.
The problem is that much of the buying process is confidential, and this lack of transparency can sometimes breed distrust. But the rules and regulations are in place to protect those offering, buying or selling a property. If an offer is made or increased, the offer's price and the offeror's identity are confidential. If you try to make an offer on the same property, you will not be told the value of any other offers. Sadly, this can mean that prospective buyers may question whether there is an offer already on a property or if this is just a ploy to make them offer more.
But, of course, these confidentiality rules are in place for a reason. If you've offered on a property, you won't want the figure shouted from the rooftops, ready for other buyers to swoop in and outbid you, do you? So, how can we rid the industry of these myths that breed mistrust in home movers about estate agents?
Perhaps it would help with transparency and build trust if we sold properties in an auction style? This process works very well in Australia, where viewings are often an open-house style, with an auction held in the property's garden at the end of the open viewing. All sales are tied up nicely within a few hours, and the interested parties are all present and know the other bids and interest in the property. This way, a buyer can clearly see other bids from other buyers, so there is absolutely no doubt that they had to offer a specific price to secure the property.
The British property market might not be ready for all sales to be an auction; there would have to be some significant alterations to how finances are obtained, and property chains are handled here in the UK before this option will work fully. Still, it shows the difference in the process and how transparency assists with the trust between the agents, buyers and sellers and improves the buying experience.
Nonetheless, estate agents are, for the most part, not trying to hoodwink anyone about fictional viewers or offers just to try and force your hand. More likely, they are simply trying to give you as much information about a property as they are legally able to do so.
Next time you feel you're being lied to, why not ask the agent outright if they are telling the truth - their response will likely be illuminating, and I am sure your trust in estate agents will grow.
If you are considering moving house or trying to find a new home, contact our property experts- they are happy to help however they can.