Unless you are thinking of buying or selling a property privately (see below), you will be dealing with estate agents in one shape or form.
Estate agents have a commercial, ethical and legal duty to work on behalf of their client. 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 a 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 agent appears to be, never forget that their job is to act in the interests of the other side. However estate agents have to be nice to buyers to get them to view the maximum number of properties.
For your part you will need to make friends with the estate agents to ensure you are informed of all new properties that come up for sale.
Getting the best out of estate agents
At any one time there are far more buyers than an estate agent can service effectively. Most therefore operate a grading system to separate what they consider to be a quick clean sale from those more likely to take their time and be held in a chain.
Grade 1 - hot
Definition: Purchaser is able to proceed with a purchase immediately.
This would mean 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 you current property
If you fit into this category you should be told about every property that comes up on the market.
Grade 2 - local vendors
Definition: Local vendors cannot proceed immediately because they have their own property yet to sell.
This would mean you:
have a house locally which is not yet on the market
have a house already up for sale with the same or another estate agent
If you fit into this category you should receive a good service from the agents you keep in contact with. However you will not be considered a serious buyer until your house is sold.
Grade 3 - Others
People who are moving from out of the area and still have a property to sell.
Estate agents will be fully aware that statistically 95% of all people who register from out of the area with a property still to sell will not buy through them. Taking this into account they will sometimes be loathed to even let you register, or if you do register they may never even bother to contact you.
When going to register with the estate agents its best to go in person, this way you will be able to build a better rapport with them, and they will be able to put a face to the name aiding your chance of being contacted with all relevant properties.
During the registration they will discreetly grade you with the above in mind. Anything you can say to get you to a higher grade will aid your chance of getting that dream property.
Go to all estate agents in the area. If you don't then you may well miss out on that one house / flat / investment that meets your criteria.
Maintain constant phone contact with all the estate agents. This will keep you fresh in their minds, as sometimes bargains or desirable properties can go within hours. If you are offered a viewing on something that sounds ideal, go as soon as possible.
Viewing a property
As the saying goes 'less is sometimes more'. The less you say the less the estate agent knows how you feel, and the more bargaining power you have. If they see you really like the property the estate agent and the vendor may well have a more stubborn stance when it comes to negotiating.
Selling your property
Selling can be an expensive business. Typical estate agent fees eat up 2% of your sale price in London and some agents charge as much as 3%.
At 2% it would take a £4,700 slice out of a £200,000 property once VAT has been added, reducing your profits and hence giving you a smaller deposit for your next purchase.
There are two ways to keep these fees lower. First try to negotiate with the estate agent. You may get them down to 1% especially if you give them sole selling rights, you can always change this later. Remember even half a per cent off could save you thousands.
The other method is to sell privately and cut the agent out of the loop altogether. There are several internet based companies who will take professional photographs and advertise it on the web with your wording for around £200.
Keith Davis MD of propertybroker.com, reckons its customers save on average £4,400 in estate agents commission.
Other methods of taking the agents out of the equation whether you are selling or buying:
Advertising privately in local newspapers stating details of property if selling, or what you are looking for, including area, size, price guide.
Leaflet drops, stating you are a private buyer no commission etc.
Foreign Estate Agents
Depending on which country you are looking in, estate agents will come in many forms. For example in Spain they range from large developers and property sales companies that specialise in selling holiday homes to foreigners, to smaller, local Spanish agents - often one man enterprises.
For conducting initial research and making contact with some of the large agencies you won't even need to leave the UK . There are property exhibitions touring around the UK cities all year round.
When dealing with these agents although they may well be offering a very good standard property in the rough area you want at a price in your range, be careful that you are not limiting your search by dealing with agents who represent a single property complex, or a small range of developments.
Always take your time and never be rushed into anything. You may well be offered cut price flights to the country to see the apartments along with free accommodation if you go in the next 1-2 weeks which will be refunded if you go through with a sale. Here you will be buttered up and shown around various apartments and given hard to refuse sales pitches. If you do like the offer and are tempted to go ahead, never sign anything until you get it checked out by a bi-lingual lawyer.
If you are looking for that slice of individuality tucked away in the countryside then you will probably find an estate agent by traveling around the area you are looking in, or by a personal recommendation from someone you know who has previously bought in the area.
If you're unsure and want to check on the estate agent you are dealing with, you can contact the Confederation Européene D'Immobilier (CEI). It represents more than 25,000 estate agents across Europe , and aims to stand for the estate agency profession. All its members subscribe to a code of conduct.
The CEI covers 13 countries including Austria , France , Germany , Greece , Hungary , Ireland , Spain and the UK .
In the UK, the Federation of Overseas Property Developers, Agents and Consultants (FOPDAC) represent estate agents, property developers and specialist consultants (including lawyers and mortgage brokers) who are active in the international property markets and who aim 'to conduct their activities in a manner which seeks to protect the interests of those who have decided to purchase, or sell, a property overseas.
In many parts of Europe there is a system whereby contracts are signed at an earlier stage than in the UK - so if you are at the stage of viewing properties and do not want to waste everyone's time, including your own, its important to be ready to commit to a purchase quickly.
Whether you are buying a property that has not yet been built or one that has been standing for hundreds of years, it is vital to have any kind of contract checked out thoroughly by a bilingual lawyer before you make a commitment to buy.
