28 Jun Buy and sell your home through estate agents
HOW TO BUY AND SELL A HOME THROUGH ESTATE AGENTS
Wondering how long it takes to buy or sell a house through an estate agent? Not sure what questions to ask when viewing a property? This guide explains what estate agents do, what fees they might charge and looks at other ways to buy and sell property, including online.
WHAT DO ESTATE AGENTS DO?
Some estate agents might recommend mortgage brokers, surveyors, or lawyers. You can speak to them, but you do not need to use their services. It is 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 will need a surveyor, but they might have partnerships in place to recommend a surveyor to you.
HOW LONG DOES IT TAKE?
There is no set timescale for a 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 are buying a property, there should be no estate agent fees involved.
If you are selling, you will usually pay between 0.75% and 3.5% of the selling price to your estate agent.
Shop around and negotiate once you have found an estate agent you would like to work with.
Check the fee includes VAT or you will need to add another 20% to the price of the fee.
HOW TO DEAL WITH ESTATE AGENTS WHEN BUYING
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 YOUR 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 has been discussed and agreed.
QUESTIONS TO ASK
If you are 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, do not be afraid to ask lots of questions. Bear in mind asking the right questions now might save you quite 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? (Curtains? Light fittings? Furniture?)
Making an offer
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 lawyers have exchanged legally binding documents.
Subject to survey – this allows for the cost of any faults or issues to be considered 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 do not receive this, then make sure to ask for one.
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 is 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 up 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 are 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 have 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.
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 are not satisfied with their response you can get in touch with the property ombudsman who covers your agent.
The Property Ombudsman Service (TPOS)
The Property Redress Scheme
OTHER WAYS TO BUY AND SELL PROPERTY
SELLING ONLINE
There are websites which will help you find a buyer, or sell your property, saving you a considerable amount of money.
For sale listing services only, remember you are 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 are 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.
AUCTIONS
This can be a popular (and quicker) way to buy or sell properties which might need refurbishment or have been repossessed.
You will probably pay a 10% deposit with the remainder payable within 28 days, so you will need to have money ready.
Remember there will be costs to consider such as entry fee for the catalogue and auction, commission, solicitors fees and survey costs.
We have more guides available for first time buyers, home buyers, remortgages and buy to let.
We also recommend The Money Advice Service if you want more detailed information.