First Time Seller - Trying to pick an agent

Blondetotty

I've had my flat since 2005.  It was originally a shared ownership but I've now stair-cased to 100% and completed a lease extension.  My sister currently lives in the flat while I live elsewhere but I've decided to sell the flat and buy a house closer to where I am currently.  Sister is on board with this so will be moving at the same time and I'm just about the start the search for an agent to sell with. 

I'm visiting in a couple of weeks time and have 6 agents lined up across one day to give me valuations but I'm stumped as to what I need to ask them.   Does anyone have any helpful tips in helping to decide on one and what sort of commission or costs would be appropriate or not?.  What I don't really want to do is go with the highest valuation and then have to reduce in a few weeks time.  I've got some rough online valuations which would mean my mortgage is now about 60% ltv so I've got plenty of wiggle room on sale price. Can someone explain the differences between different types of contracts such as sole agent etc?  I'm completely au fait with renting and letting agents but for selling, this is my first time and I'm a bit out of my depth!
Thanks

CSI_Yorkshire

I think (but am prepared to be corrected) that the contract types are:

Sole Agency - only one EA is instructed to sell the property

Sole Selling Rights - only one EA is instructed to sell the property, and even if someone who doesn't use the EA (or uses a different EA) buys the property then you still have to pay them.  Don't agree to this.

Multiple Agency - more than one EA, and only the one that introduces the buyer gets paid.

Joint Sole Agency - more than one EA, and whoever introduces the buyer they all split the fee.

Grizebeck

3 is ample you dont need 6

steampowered

Personally I would not pay any attention to the "valuation" you get given. Agents will market the house at whatever price you tell them to. The market determines what your house is worth, not the agent.

Have a look at the sold prices / listings on Zoopla and Rightmove in your area and you'll pretty quickly find out what your house is worth.

If you decide between agents based on what they think your house is worth, all you are doing is incentivising the agent to give you a number that is as high as possible to win the business. Even if they know the number cannot be achieved. All you are doing is setting yourself up for disappointment when buyers don't offer that.

You will have to discuss with your agent whether you want to market the house at a wishful valuation or whether you market at a realistic valuation. Now that anybody can log onto Zoopla or Rightmove and see what similar houses in your area are selling for, personally I think going for an unrealistic valuation is pointless as anyone will have a pretty good idea what your house is worth just by looking online.

I would choose between agents based on who you trust and who knows what they are talking about! Maybe put in an enquiry about one of the properties on their books currently and see how they treat you as a potential buyer? 

Main decision for you to make is whether to go for sole agency for the cheaper fee, or multi-agency so you can market with multiple agents. 

Blondetotty

Thanks but the market seems to vary considerably where we are.  Some ex council flats with a 900 year lease are 150k for 2 beds, some new builds 200k but then an older purpose built will show up at 190k and another for 140k with no lease information.  Those are for 2 beds in a 3 mile radius.   

Mine is a 2 bed, built in 2005 with a new lease extension to 170 years. The Housing association based my staircasing price last November at 145k on a RICS valuation.  We've just completed my lease extension based on 195k on a RICS valuation, so add in previous selling prices I'm getting ranges from 140-200 ish hence narrowing it down with some professional valuations. 

theoretica

One use for estate agent price predictions is making them stand behind their number.  You think you can sell this in 6 weeks for 350k - your competitors only think they can get 300k.  What do you offer in terms of reduced commission and release from contract if you don't meet your predicted price... 

ReadingTim

Don't forget that as vendor, you tell the EA what price you want them to market it at.  They can obviously make recommendations, but the decision is up to you.  When I sold my place, I priced it as if I was buying it again, so checked out what had recently sold and for how much, and asking prices for local comparables.  

What beauty parading EAs, the one I chose gave the place the lowest "valuation" of the 3 I had round, but thought they'd work the hardest to flog the place - their other rightmove ads were good, and the fees were all pretty much the same for all of them - it was a bog-standard Victorian 2 up 2 down so bread and butter for all of them, and they were all competitive on price.  

The EA was a bit hesitant when I told him I wanted £25k more than he suggested, but he sold if for full asking within a fortnight.  He did have the good grace to admit he'd been wrong on price afterwards though.... 

propertyrental

Blondetotty said:

......... but I'm stumped as to what I need to ask them.   Does anyone have any helpful tips in helping to decide on one and what sort of commission or costs would be appropriate or not?. 

.........Can someone explain the differences between different types of contracts such as sole agent etc?

* what do you charge? A fixed amount (rare) or a % of sale price? If the latter, what %? Then negotiate them down.
* what is your minimum contract period? 12 weeks? Too long. If you can't find me a buyer faster than that I'll go elsewhere. 8 weeks? Better.
* What is your notice period? 4 weeks? Too long. If I'm unhappy and want to end the contract  i want out faster. 2 weeks? Better.
* where do you advertise? Which websites?How many?
* How do you advertise? How many photos? Taken on your phone or a professional photographer? Drone for overhead photos?
* How many offices/branches do you have? Will my property be marketed by them all?

CSI_Yorkshire said:

Sole Agency - only one EA is instructed to sell the property 

Sole Selling Rights - only one EA is instructed to sell the property, and even if someone who doesn't use the EA (or uses a different EA) buys the property then you still have to pay them.  Don't agree to this.

Multiple Agency - more than one EA, and only the one that introduces the buyer gets paid.

Joint Sole Agency - more than one EA, and whoever introduces the buyer they all split the fee.

Sole agency is probably best these days. Cheaper than Multi agency.
Sole selling rights - can be cheaper still but very annoying if you find a buyer yourself....
Multi agency - use to be useful back when buyers went into EA offices to find properties. These days 90% of buyers search online, so pointless paying extra to go multi agent
Joint sole agency - rare. See multi agent above.

Jonboy_1984

We spoke to three EA and they each came and looked around our flat, with us pointing out its quirks and selling points(it had various alterations that made it a bit of a marmite property). They each then sat down to talk and one stood out as having far more experience with flats and leasehold. 

They were the middle one price wise, and successfully found us a buyer and kept the sale on track.

The flat above was unaltered and a much easier sell, and the owner asked the same three EA and went with the cheapest a few weeks after us. They took around the same time to go SSTC after several false starts.

Martico

Ask them for their track record of selling your type of property. Some may excel at troublesome leasehold flats, some may excel at mid-market. (Edit) Some may not excel at all. (Edit2) Ask them about their strategy - what would they do for you? You should get some idea about how on-the-ball they are if they are able to talk through that kind of thing.

ManuelG

My main question was how the agents would deal with the flaws in the house. I went with the one who said they'd tell potential buyers at viewings, rather than the one who fancied waiting to see if they found out during conveyancing...