Phil Spencer: Decoding estate agent language to find out what they really mean

Customer reviews are a good place to start. An agent should be proud of their business and be welcoming online reviews. If an agency hasn’t got any reviews, then that should ring alarm bells. 

And if they have got customer reviews, it is worth giving them a read. You should get a sense of the quality of their service, their expertise, and the way they communicate.

It gives you a starting point from which you can make an informed decision. Likewise, everybody uses property portals these days, such as Zoopla or Rightmove, that’s where most people start their search. If your agent doesn’t, is that a sign of their lack of proficiency in a modern market? Possibly. 

Being on a portal isn’t the sole indicator of an agent’s capability but do have that discussion. Ask what their marketing strategy would be for your home and why don’t they use a portal.

As with a lot of property work, a good recommendation is worth its weight in gold. If one of your neighbours has sold their house recently, ask who their agent was and if they would recommend them. But make sure the house is similar to yours. There is no point instructing a smart agent specialising in studio flats if you are trying to sell a four-bedroom house with a garden. 

They have got to suit your property, and they’ve got to be experienced selling in your local market.

A big name brand may have a smart looking office, but are they involved in the town? There is nothing that can replace good local market knowledge. It is easy to be impressed by the flashy brochures and smart cars, but are they trusted locally? 

The next big indicator is whether they have opted to be regulated by an industry standards body and their practice is covered by the ombudsman. While estate agents are not required by law to be regulated, there are a number of industry qualifications and standards they can sign up to.

Propertymark is a good one to look out for. Where an agent is a member of Propertymark you know the company who has a client money protection scheme, and the agent has signed up to a nationally recognised code of practice.

They will also have insurance and be suitably qualified. Full disclosure, I promote Propertymark via my MoveiQ business, but I wouldn’t do so if I didn’t believe in its standards. 

It is also valuable to check they are signed up to The Property Ombudsman as it offers an alternative dispute resolution service if you run into issues. Things do go wrong and it is important for your own peace of mind that you have recourse in that situation. 

I think it has to be a good sign when agents opt to regulate themselves and get a qualification when they don’t have to. 

It’s not easy, the rules and regulations around property change all the time so it gives you confidence that you’re dealing with somebody who’s up to scratch.

A couple of other rules of thumb are that legitimate agents will never ask for cash and should be using a secure system for managing your deposit. 

Added to this, a reputable agent will allow you to take your time making a decision about appointing someone, rather than pressuring you to choose them. 

Of course it is a competitive world. And at the moment when the market is slow, they will be eager to sign new clients. 

However, a good agent knows it is an important decision and one you shouldn’t take lightly and will give you space to think about it.

This leads me onto another important element, what price they say they can get for your property. Highest doesn’t necessarily mean best and this is an area I think where agents are at risk of being unprofessional.

Highballing what they say you can get in order to win business is unfair, will likely lengthen the sale process and only result in disappointment further down the road. 

If your place is worth £300,000 and they say they can get you £330,000: “No problem, sign here for three months”. 

You sign up and then three months down the line, you haven’t sold it and they come back to you and say, “Actually, it’s only worth £300,000”. By that point, you have completely mucked up your marketing. 

You have to have your wits about you, do some of your own research. Have your own idea of what a reasonable price may be before asking estate agents to give their view. 

I would also go to a few agents to get a sense of how they operate, what they notice in your home, and what factors they consider when coming up with a price. 

You should also get a sense of how they operate. Selling a home is a bit of a team sport, so you want to be sure that you can work effectively together. 

However, one thing to look out for is how the agency works. I have seen it happen a number of times where the first person to view your house is a senior agent from the team – clearly has a wealth of knowledge and says all the right things. 

On the basis of their pitch you instruct the firm, but then the sale of your property is delegated to a much more junior member of the team. They may be perfectly competent but it’s not who you were expecting to be working with. Don’t be afraid to ask who will end up representing your property.

And of course always ask about fees. Commission fees, one of the most common payment structures, mean the agent gets a percentage of the sale price. Usually from 0.75pc to around 3pc.

Firstly, check what the fees include. Will there be additional costs for specific marketing options, does it include VAT? Make sure you know exactly what you are getting and how the fees are paid. 

Usually this is done via your solicitor and deducted from the sale proceeds once it has gone through. But some ask for them upfront if using a different fee scheme so it is worth finding out.

There may also be a hidden withdrawal fee if you decide not to sell or a “ready, willing and able purchaser” clause. The latter means you may be charged even if the property doesn’t sell. They are worth checking for.

Then there is the question of whether you want to negotiate. Each firm and agent is different, and they may not be open to negotiation. However, in my view it is worth a try. One idea could be to offer a sliding scale of fees; where the percentage they get is reduced in line with price reductions. 

If you are looking for an estate agent, although fees are of course a big factor, try to think about the process in the round. Yes of course you want someone who can negotiate a good deal, but will they be able to keep it together after an offer has been accepted? 

There is a real skill in managing the process, knowing when to put pressure on, when to take it off. It all matters. Keeping momentum and everyone on side, particularly in a slower market is tricky. 

On the flipside, if you are a buyer my main piece of advice is there is more said in what is left out of a property description than what is. For example, if it has a south facing garden the listing will say “south facing garden”. If it just says garden, then it is not south facing.

That said, I wouldn’t be put off by a property online with only a few photos. I think agents can over photograph properties. You have to leave some room for intrigue. 

Rather than have 43 pictures of a house that you look at and go, “No the downstairs bathroom isn’t right, I won’t bother going to look at it”. A better sales strategy is to have six pictures of amazing rooms so potential buyers say, “I think it’s worth taking a look at”. Getting people through the door is key.

And try not to penalise estate agents too much for being salespeople. When they say, “We have a brilliant property, loads of interest”, and it’s been on the market for three months, clearly it’s not an instant hit or else it would have been sold. However, firstly it doesn’t mean that it isn’t the right house for you. And secondly, they are trained to point out the benefits. 

When you say “I’m not so sure about the size of the second bedroom”, they will come up with a flipside. Although they are not allowed to give you the impression that it is a competitive situation if it isn’t. They can’t lie about other people wanting to put in a higher offer. 

But it is up to you to ask questions, as a buyer the more the better. Remember that they’re not providing you with the service, you aren’t their client, they are working for the sellers. A trick that I’ve used in the past is asking different people at the agency the same question. It is a good route to finding out what is really going on. 

When you go on viewing ask why the owners are selling. Then maybe you go into the estate agent’s office or call the reception and speak to someone else, ask them the same question.

You may have been told originally that the wife has a new job so they’re moving. This could be the case. But what if someone else tells you it’s due to nightmare neighbours. Always ask questions, to everyone. You never know what you will find out. 

As ever, do email me with your thoughts and questions: phil.spencer@telegraph.co.uk

Phil Spencer shares his advice on his website moveiQ.co.uk