The process of conveyancing involves interaction with many types of professionals including estate agents.
If you are dissatisfied with the service being provided by your agent for the sale of your property, you have the option to switch agents. This article will walk you through the steps to transition smoothly to a new estate agent and optimise your chances of a successful sale.
Signs that you need a new estate agent
Lack of communication and updates
Frequent communication gaps from your current estate agent signal a need for change. Regular updates are a fundamental expectation in property sales.
If your agent fails to provide consistent feedback or respond promptly, consider switching estate agents. This lack of communication could delay your property sale.
No progress in the property sale
Stagnation in the selling process can be frustrating. If your property remains unsold for an extended period without any signs of progress or interest from buyers, it might be time to switch agents.
Many estate agents bring innovative strategies to reinvigorate property sales.
Unsatisfactory strategies and marketing efforts
Effective marketing is key to attracting buyers. If your property's marketing seems lackluster or outdated, this could hinder the sale. Changing estate agents can introduce fresh marketing approaches tailored to your property type and the local area, potentially attracting more interested parties.
Evaluating your current estate agent's performance
Assessing responsiveness and professionalism
Evaluate your current agent's professionalism and responsiveness. A good agent engages actively with potential buyers, provides constructive feedback, and keeps you informed.
If your agent lacks these qualities, switching to a different estate agent who prioritises your best interests might be beneficial.
Reviewing success in attracting buyers
Consider your agent's success rate in attracting buyers. If viewings are infrequent or the interested parties seem mismatched for your property, this is a red flag.
Switching to an agent with a solid track record in your local area could lead to better price offers and a quicker sale.
Legal implications of changing estate agents
Reviewing your current agency agreement
Switching estate agents starts with a thorough review of your existing contract. Your current agency agreement contains details about terminating the relationship. Focus on specific clauses regarding the notice period.
Most estate agents require a minimum notice period before you can end the agreement. This duration varies, spanning a few weeks to months. Identify this period to avoid breaching the contract.
Sole agency and sole selling rights agreements
Different types of agency agreements exist, such as sole agency and sole selling rights agreements. In a sole agency agreement, you're liable to pay a commission to your estate agent if they or anyone else sells your property during the agreement period.
Sole selling rights agreements are more restrictive. Here, the agent receives a commission regardless of who finds the buyer. Understanding these distinctions helps in making informed decisions about changing agents.
Legal considerations in switching estate agents
Early termination clauses
Early termination of an agreement with an estate agent can be tricky. Many contracts have clauses that allow for early termination, but often with conditions.
You might face penalties or fees for ending the agreement prematurely. It's important to understand these terms to gauge any financial implications. Sometimes, a frank discussion with your current agent can lead to a mutual agreement to part ways amicably.
Potential for double commission charges
One of the biggest risks when switching estate agents is the possibility of paying double commission. This situation arises if your new and old agents both claim commission on the sale of your property.
To avoid this, clarify the terms of your existing contract regarding continuing liability. Ensure that your new agreement states that the new agent is solely responsible for the sale to prevent commission disputes.
How to select a new estate agent effectively
Evaluating local market knowledge and experience
Selecting a new estate agent begins with their understanding of the local property market. Check their track record in your area.
A skilled agent recognises local trends, knows about recent sales, and can predict buyer interest. Their expertise can be a deciding factor in how swiftly and profitably your property sells.
Different agents' approaches and strategies
Different agents have unique methods. Some might leverage digital marketing more effectively, while others have a strong network of potential buyers.
When considering a change, focus on how their strategies align with your property's needs. Analyse their sales techniques and communication styles to ensure they match your expectations.
Using multiple estate agents is an approach that some people adopt; read more about it.
Organising valuation meetings with estate agents
Before meetings, prepare a set of questions. Inquire about their sales record, marketing strategies, and communication methods.
Understand their views on the asking price and how they would approach selling your home. These discussions provide insight into their professionalism and suitability.
If you didn't manage to have as many viewings as you would have liked, it will help asking potential estate agents how they might plan to solve this issue.
Comparing proposals and marketing plans
During valuation meetings, agents will present their proposals. Compare these carefully, focusing on marketing plans, sales strategies, and fees. Evaluate how each plan aligns with your goals and which agent offers the best service for your needs. This comparison will guide you in selecting an agent capable of effectively marketing and selling your property.
Make an estate agent shortlist
Compile a shortlist of estate agents: compare them based on their sales speed and how closely their final sale prices align with your asking price.
Steps to switch estate agents smoothly
Ending your current estate agent relationship
Switching estate agents begins with ending your current association.
If you’ve decided to change estate agents, here’s how to proceed. First, review your contract to identify any tie-in period. Next, provide your estate agent a notice as many contracts require a minimum notice period.
Ensuring you give proper notice will help you avoid breaching the terms of your agreement. The length of the notice period, often between two to four weeks, should be adhered to.
Managing the handover of property details and documents
After giving notice, you must ensure a smooth transition. Organise all property-related documents and details for a handover.
This includes marketing materials, property descriptions, and any legal documents. A clear and structured handover eases the transition for your new agent and avoids miscommunication or delays.
Formalising the agreement with your new estate agent
Understanding the terms of the new contract
When appointing a new estate agent, thoroughly understand the new contract. Pay close attention to clauses like sole agency agreements or tie-in periods.
These terms dictate your relationship with the new agent and any limitations. Ensure that the contract reflects your expectations and requirements for the property sale.
Setting clear expectations and goals
Establishing clear expectations with your new agent sets the foundation for a successful partnership. Discuss and agree on main objectives, such as the asking price and marketing strategy.
This alignment ensures that both parties are working towards the same goals, leading to a more efficient sale of your property.
FAQs
Can I switch to a different type of agency agreement?
Switching to a different type of agency agreement is a viable option. You may currently have a sole agency agreement or a sole selling rights agreement.
Each has distinct terms regarding how you can work with other estate agents. A sole agency agreement allows you to sell the property independently without paying a commission to the original agent.
However, with a sole selling rights agreement, the agent gets a commission regardless of who sells the property. Understanding these differences is key to making an informed decision about changing your agreement type.
How long should I wait before changing estate agents?
Deciding when to change estate agents depends on several factors. Evaluate the minimum tie-in period outlined in your contract with the current agent. This period ranges from a few weeks to several months.
If your property hasn't sold within this time, or if you're dissatisfied with the service, consider switching agents. Waiting until the end of the tie-in period can avoid hefty fees. Always review the agent notice requirements in your contract to ensure compliance with legal obligations.
You might also want to have a look at how the Property Ombudsman helps resolve property-related disputes.
Is it possible to work with two estate agents at once?
Working with two estate agents simultaneously is possible, but it requires careful consideration. This arrangement usually falls under a 'joint agency' or 'multiple agency' agreement. A joint agency involves two agents working together for a potentially higher commission.
In contrast, a multiple agency agreement has several agents competing to sell your property, often resulting in higher fees.
Weigh the pros and cons of these options against your need for more exposure and quicker sale times. Be aware of the legal and financial implications, such as double commission risks, when opting for this approach.