Estate agents will often help those hoping to move and try to make the process as simple as possible. Buying or selling a property is not an easy task so getting an expert’s opinion can make the process easier. However, there are quite a few tricks of the trade that estate agents use to keep their property portfolio moving and the commission rolling in.
Estate agents are on hand to help those who are trying to sell or buy a property.
They can offer advice on how much the property is worth and give tips and tricks on how to sell quickly.
However, some experts will not always work in the best interest of the seller, an expert warned.
While many estate agents will try hard to help sellers shift their home, others may not give the best advice.
“The other form of ‘phantom offer’ that can happen is when you’ve had an offer accepted, a few weeks pass, you’ve instructed your solicitors and you get a call saying there’s been a higher bid on the property.
“Majority of the time this can be genuine and is called Gazumping, but sometimes this could be made up by the estate agent or more likely who they are acting on behalf of to get a bit more out of the sale.”
Jonathan also shared that buyer premiums are another tactic to make a note of.
The buyer’s premium refers to a percentage additional charge on the hammer price (winning bid at auction) of the lot that must be paid by the winning bidder.
It is charged by the auctioneer to cover administrative expenses.
The buyer’s premium goes directly to the auction house and not to the seller.
He explained: “Buyer premiums are another tactic. It’s important if you are buying to read the small print to avoid paying additional money on top to cover the agent’s fees.
“By using this tactic, estate agents can win more properties by telling the owner they won’t pay anything at all in commission.
“It’s common at auction but buyers aren’t used to it in the normal market.”
When looking on estate agent websites, buyers may notice there are a lot of wide lens photos – this could be a tactic to make rooms look bigger than they are.
Matthew said: “You can’t particularly blame them for this, but the professional pictures taken of homes are often with a wide lens.
“This means that the picture often makes the room look much bigger than it is, which is always something to be aware of when deciding which houses you want to physically view.”
Buyers should make sure they look and compare floor plans to get a better idea of the actual size of certain rooms.
Speaking of research, Jonathan urged: “Make sure you’re not bidding beyond what the home is worth by doing research online and getting to know every property that is on, or has been on the market recently.
“Find out how much prices are rising each month and look at sold prices, adjust for inflation and hey presto, there’s your value today. In short, pay what you’re happy with and don’t be pushed into anything.”
When putting in an offer for a home, the property pro noted that it’s worth considering seals bids.
Jonathan explained: “Buyers might be asked to put their ‘best and final’ bid in an envelope to be opened at a set time by the estate agent.
“Not only do most buyers offer their maximum, they also add on a bit more to be on the safe side.
“Nowadays it is worth thinking about ‘offers over’. Pricing like this keeps the asking price (and price band on portals) looking low when in reality it was never going to be sold at that price.
“But importantly it hooks in more buyers from lower search price brackets to fuel the feeding frenzy.”