Choosing the right estate agent: A three-part guide to help you sell your property

Part 3 - Contracts, charges and choices

This is the third, and final part, in our free guide to help you choose the right estate agent to sell your property. In part one of our guide – Shortlisting your choice of estate agent - we looked at the criteria you should be looking at in order to whittle down the choice of agents available in your local area to a manageable shortlist. In part 2, - What to ask your estate agent - we provided you with a checklist of services offered and 10 questions to ask your potential estate agent to help you make your choice. In this concluding part - Contracts, charges and choices - we are now going to look at the final steps of checking the contract and comparing estate agents fees before summarising the whole process of choosing the right estate agent to sell your property.

Checking the contract.

Ask each of your shortlisted agents for a written copy of their standard contract document. And whatever happens, do not be rushed into signing this. We can't stress this enough. It is in your interest to READ YOUR CONTRACT. If you are not comfortable doing so, then ask a friend to help you or seek professional advice. Remember, a contract is a legally binding document so this caution is only to avoid you getting involved in a legal battle with your estate agent should anything go wrong at a later stage and a genuine agent will be understanding of this.

Things to look for particularly should be:

• Standard duration. How long are you tied into your contract?
• Failure to deliver. What happens if your estate agent fails to meet agreed levels of service?
• Are there break clauses built into the contract? A break period is an agreed period of time which allows you to re-negotiate or cancel your contract should the agent not live up to your expectations, fail to deliver or if you have had a change of heart or circumstance.. A break period of 6 – 12 weeks is an ideal balance, allowing your estate agent sufficient time to market your property but allowing you to re-negotiate or pull out if you are not satisfied in a reasonable time frame.
• What happens if you find a buyer yourself?

If in doubt, ASK. A genuine estate agent will not mind you asking for clarification of a point you don't understand or agree with

Comparing estate agents fees.

Fees vary from estate agent to estate agent but will traditionally be based on a percentage of the final sale value of your property, although some agents now offer a scaled-down fixed cost option as well. In general, the criteria that determines the estate agents fee fall into three main categories:

• Sole agency. This means that you agree to instruct only one agent to market your property for a given period of time. In return for this period of exclusivity, the fee will be lower typically between 1% - 2%
• Multiple agency. This term reflects your choice to market your property with a variety of agents in your area for a given period. This is the least preferred choice for most estate agents so typically the charge will be higher. Expect to pay between 1.5% - 2.5%.
• Fixed cost option. This is a relatively new option and will generally be an up-front, non-refundable charge for a scaled down service. Expect to pay between £999 - £1500 but check what is included in the standard services and that you are happy to conduct the services not included yourself.

Choices

If you have completed Parts 1 – 3 of our guide, Choosing the Right Estate Agent, you should now be in a very strong position to choose your estate agent. To help you make your final choice, here is a summary of the three parts.

Shortlist your choice of agents:

• Tap into your local network for recommendations.
• Monitor local market activity.
• Check professional credentials
• Check online credentials
• Mystery shop them
• Compare their pedigree
• What to ask your estate agent:
• Compare how each branch handled your request for home visit & valuation.
• Were the agents punctual and professional during their visit?
• Compare standard items included in fee from our checklist
• What else can they offer to help sell your home?
• Compare their answers from Estate Agent Checklist – 10 simple questions
• Rate your personal relationship with each estate agent

Contracts, charges and choices:

• Is everything you need covered?
• Are you comfortable with all the jargon included?
• Are you happy that you are protected sufficiently?

Compare fees:

• Choose the fee structure most suited to your needs
• Be comfortable that everything you need is covered in your fee

Selling your property does not have to be difficult or stressful. By choosing the right professional estate agent to help, you will save both time and money. And to that end, we hope that this three-part guide has helped you navigate through the seemingly complex choice of estate agents available to you and that your property sale is a quick, profitable and stress-free experience.