How to Choose an Estate Agent
If you want to achieve the best price for your property, you need to sell it in the right place. But with so many agents to choose from, how do you pick the best? At Movewise, we deal with lots of estate agents, so we have a pretty good idea what separates the wheat from the chaff.
What makes a good agent?
In our experience, there are three key qualities that a good estate agent needs:
1: A good list of buyers
Any agent can put a photo of your home in their window, list it on Rightmove and then cross their fingers. But a good one will be thinking of potential buyers as soon as they see your property – and will already have the details of people who are likely to be interested.
2: A proactive nature
That black book of buyers is only useful if the estate agent is willing and able to put in the work to contact them. Some agents are great at this, while others prefer to concentrate on the easier sales. And while you want to choose someone who has plenty of potential buyers on tap, you don’t want them to have so many properties on their books that they can’t devote enough time to yours.
3: The right marketing skills
The agent is giving the sales pitch for your home, so make sure they can do a good job. This is where interviewing an agent is vital. Do they come across as sincere and knowledgeable? The best way to get an idea of how your shortlisted estate agents act with buyers is to pose as a buyer yourself. If you pretend you’re looking for a property similar to yours, what do they show you? What is their local knowledge like?
How should you narrow down your choice?
Many people choose agents for the wrong reasons – the agent is local, they offer low fees, or they have given you a high valuation. In fact, the single most important question to ask yourself is: “How much interest in my property can this agent generate?” Here’s how to answer that.
1: Find the agents who sell most property like yours
This may seem counterintuitive – some sellers worry that their listings won’t stand out if there are lots of similar properties on offer. But an agent who handles lots of properties similar to yours is also likely to know lots of potential buyers for that type of property. Have a look around neighbouring streets for agents’ boards, and check the property portals to tally up which agents are busiest in your area and price bracket. This is especially important for rented properties: some agents are not so used to handling investment property and may try to encourage you to offer it with vacant possession.
2: Interview them
Once you have a shortlist, pick up the phone and ask questions. Get a feel for how proactive and enthusiastic the agent is: are they likely to motivate buyers? Ask them about interest levels in similar properties and whether they have buyers ready and waiting. Check the brochures and online adverts. Do the photographs and floorplans look professional?
3: Arrange valuations
It’s wise to get at least three estate agents to value your property. Tempting as it may be, it’s not necessarily wise to go with the highest figure. An overvalued property is likely to stick around on the market, and price reductions (which show up on online searches) can be a red flag for many buyers. Similarly, a low valuation might mean you sell your home quickly but give away value.
4: Negotiate the fee
The percentage you pay is likely to depend on whether you are appointing sole or multiple agents (see below). Remember the percentage is only part of the equation. You might be put off by Agent B charging a 0.5% higher fee than Agent A, but if they can sell your property for 1% more, it makes sense to choose them.
Sole or multiple agents?
Sole agents means a single estate agency has the sole right to sell your property. You will usually enter into an exclusivity agreement, typically lasting 12 weeks or more. With multiple agents, different firms will be competing with each other to sell your property, and only the successful agent will get the commission. Using sole agents will be cheaper, and simpler to manage, however beware the exclusivity period. If you sell your property within this time then you have to pay the agent commission – even if they didn’t find the buyer.
On the downside, only listing with one agent is likely to mean reaching fewer potential buyers, and consequently waiting longer for a sale. This is less true nowadays than in the past: most agents will list on Rightmove and/or Zoopla, which means a lot more eyes on your property. However, the portals are still no substitute for an agent with a good list of potential buyers. In fact, we estimate that 50% of the interest in your property is likely to come from the existing applicant list of the agent rather than people who see it online.
Don’t leave it to chance
As the official sales partner of the NRLA, Movewise can take the guesswork out of finding an agent. We analyse a million data points from the property market each day, so we can identify the best agents in a rigorous manner. For landlords, we also offer direct sales to other investors, or auction – our focus is entirely on finding the most effective sales route for any property.
To find out how we can help, complete our landlord registration form and one of our team will be in touch. You can also read our complete guide to choosing an estate agent.
