Selling or buying a home? Beware these common estate agents complaints

By Elliot Wright, 30th June 2010

Whether you are trying to make that first step onto the property ladder, desperate to move into your dream home or looking to sell up or down, you will have to face the fact that you will most likely have to deal with an estate agent.

Despite conjuring up images of glorified Dixons sales assistants with shiny hair in shiny cars and even shinier suits, a lot of estate agents can be relied on to handle the largest and most important transaction of many people's lives in a professional and efficient manner.

Nonetheless, dealing with estate agents can be a veritable minefield of dishonesty and hidden costs. And despite the property market seemingly stuck in recovery mode due to the economic downturn, complaints about estate agents are still being measured in their thousands.

In fact, the Property Ombudsman - an independent service that resolves disputes between consumers and sales and lettings agents - saw a 40% spike in cases in the first quarter of 2010 compared to the same period in 2009.

But exactly how do estate agents let down buyers and sellers, and what can be done to prevent such instances?

Most complaints about estate agents materialise as a result of misleading information, bad advice, sneaky terms and conditions hidden in the small print and plain old unprofessionalism.

There are many things that could go wrong so it is imperative that you keep your wits about you and do as much as you can to prevent engaging the services of a dodgy estate agent.

Should you end up with a bad agent, you could find your dreams shattered and your bank account relieved of thousands of pounds with nothing to show for it but weeks of stress and disappointment.

How to find a reputable estate agent

The first thing to do before engaging the services of any estate agent is to ensure they are properly accredited.

The majority of estate agents are members of either The Property Ombudsman (TPO) or the National Association of Estate Agents (NAEA) and should be registered by the Office of Fair Trading-approved Estate Agents Redress Scheme.

With the appropriate accreditation, you can be sure that any complaint you make against your agent will be reviewed properly in line with the relevant code of practice.

Also, do not be afraid to ask agents how long they have been in the industry for and how much training they've had. Working with a seasoned and experienced professional will certainly help your peace of mind.

If your estate agent is not affiliated with any recognised bodies or is dangerously under-qualified, then they are simply not worth the trouble. Would you really risk tens of thousands of pounds of your money and your biggest asset with someone you can't trust?

Common estate agents complaints and how to avoid them

There are many things that can go wrong when dealing with estate agents, this list will help you identify and hopefully avoid the most common causes of complaints.

Be on your guard when an agent values your home much higher than expected. This may be a ploy into getting you to give them sole instruction to sell your property only to later reduce the asking price.

Trustworthy agents should be members of the Royal Institution of Chartered Surveyors and adhere to written guidelines on valuations. Ask them to run through the process with you and show you "comparables"- prices of similar properties in your area that have sold recently.

Ensure all details and particulars of your home are correct and professionally-done. Inaccurate details of your home, the slow appearance of particulars on paper and on the web, and poor-quality photos are common complaints made against estate agents. If you're not satisfied with the agent's brochure then hand it back to them and suggest what they change.

Check and double-check the estate agent's fees. Closely scrutinise the agent's fees to see what they cover and if there are any hidden extras. The Estate Agent's Act 1979 requires details of all fees and charges, including agency fees to be disclosed prior to instruction. These may be in the small-print so ensure you check all agreements carefully.

Is publicity included? You may end up paying more for publicity if you don't check what is included in the basic agent's fee. It can cost £75 for a small picture in a local paper and you don't want to be stuck with just a sheet in their branch window and a website entry.

Make sure the agent turns up to viewings. Agents' failure to turn up to viewings is a very common complaint. Specify beforehand if and when you want the agent to accompany potential buyers on viewings.

Don't take the estate agent's in-house mortgage advice as gospel. You could end up paying way over the odds for a mortgage if you don't shop around and consult other brokers. Also bear in mind that it is illegal for an agent to pass your financial details onto any third parties.

Get assurances from the agent that potential buyers can afford your home. Estate agents frequently fail to ensure that potential buyers have the means to pay for sellers' homes. Insist that the agent presses the buyer to produce evidence that they have the means to fund the transaction e.g. a letter from a mortgage lender stating that sufficient funds are in place. This will filter out time-wasters and avoid sales falling through at a late stage.

Look out for the "For Sale" board and make sure that the estate agent removes their sign once the transaction is completed, or at least keep it up to date if a sale has been agreed.

Some estate agents have even been criticised for leaving signs outside homes on the books of rival agents to steal their customers. Any such shenanigans may hinder the sale of your home.

Ensure the estate agent keeps you up to date on the progress of the sale. Some agents fail to keep sellers up to date with details such as feedback after viewings and whether any offers have come in, this can cause delays to the sale. Hassle your estate agent to keep you informed on every aspect of the sale process.

Watch out for this common ruse too...

Another great cause for consternation amongst sellers is some estate agents' attempts to claim commission on a sale even when they were not directly involved in the transaction on the basis that they introduced the buyer.

In a recent court case, the judge ruled that when an estate agent makes a claim for commission, they must prove they were the effective cause of the sale. In other words, they must have introduced the purchaser to the purchase, not merely introduce them to the property.

In addition, agents who are members of the TPO or NAEA have no right to commission if you withdrew their instruction more than six months before the sale.

Those who are not part of these bodes, however, can claim up to six years so be wary.

Some estate agent contracts contain a clause which states that if the agent finds a 'ready, willing and able' purchaser, then they have right to claim commission regardless of whether you sold your property to that purchaser or not.

The best way to avoid this is to not sign this type of agreement in the first place, so, again, it is highly advisable to inspect the small print carefully.

Cancelling your estate agent

If you've changed your mind about selling your home, or had enough of a dishonest and unprofessional estate agent, you are entitled to cancel your agreement with the agent.

If you have entered into a "sole selling" agreement you must wait until the notice period elapses before you are free of the agent.

If you have a "sole agency" agreement then you will again be subject to a notice period. Take care to avoid instructing another agent during this period, because if they find a buyer for your property you may have to pay commission to the original agent on top of the commission to the new one.

Cancelling is a relatively straightforward process. Simply call the agent - making a note of the time of the call and who you speak to - and explain to them you wish to give notice that you're withdrawing the instruction for them to sell your property with immediate effect. You do not have to give them a reason as to why you're cancelling. Follow up the call with written confirmation of the cancellation.

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