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Making estate agents work for you

OFT says shop around for your estate agent

Since this press notice has been published, the leaflet referred to has been taken out of circulation.

150/04     23 September 2004

House buyers and sellers need to shop around and make informed choices when looking for an estate agent, says the OFT in its new guide to buying and selling a home.

Download leaflet A quick guide to buying or selling your home (pdf 242 kb)

The guide follows a recent OFT study into the estate agency market which found a high degree of dissatisfaction amongst customers about estate agents' services. More than nine out of ten people buying and selling a home in England and Wales use an estate agent. The OFT's 'A quick guide to buying or selling your home', encourages consumers to be aware of their rights and gives advice on what to look out for when using an estate agent in England and Wales.

House sellers should get at least three estate agents' valuations and quotes for their services. By shopping around and negotiating with agents on fees, sellers could make big savings - around £300 on an average priced property. Sellers should also ask for fees to be stated as a monetary sum based on the agent's valuation, rather than a percentage, so they know in actual terms how much they are likely to be charged.

Once an agent has agreed to act on a seller's behalf they enter into a legally binding contract. Sellers should make sure they check what the package includes, the terms and conditions of the contract and any fees and charges before signing.

Those buying a property should remember that estate agents are usually working for, and paid by, the seller. Agents have an obligation not to mislead consumers and must describe the property in a true and accurate way.

Other top tips for both buyers and sellers include:

• check whether the estate agent is a member of a trade association
• shop around and compare before you commit yourself
• don't be persuaded to sign up to mortgage, conveyancing or other services without checking alternatives
• keep a record of all correspondence.

John Vickers, OFT Chairman, said:

'House buying and selling is a big financial commitment. By shopping around and knowing their rights buyers and sellers get the better deals.'

The leaflet, 'A quick guide to buying or selling your home', can be ordered from the publications page of this website or by contacting 0870 60 60 321. A leaflet for Scottish buyers and sellers will be published shortly.

NOTES

1. The OFT published its report on the estate agency market on 23 March 2004 (see press release 51/04). The DTI response to the report was published on the 22 July 2004 and is available from the DTI website.

2. The OFT interviewed 1,000 buyers and 1,000 sellers during the course of its market study. Approximately 500 estate agents offices responded to a detailed questionnaire.

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