Estate agent tricks of the trade

On the whole, estate agents do a good job at helping the nation buy and sell houses. But they don't have the best reputation for putting people above their profits. So here are just a few estate agent tricks of the trade to be aware of - and how to tackle them.

Paula Higgins CEO & Founder

Whether you’re buying or selling, make sure you’re up to speed on the estate agent tricks of the trade you may come up against.

Estate agent tricks of the trade: tips for buyers

So if you’re buying, what estate agent tactics do you need to be on the lookout for?

Whipping you into a frenzy

It’s the estate agent’s job to create a buzz around a property and common tricks of the trade to do this include:

• Arranging appointments close together to give a buyer the impression lots of people are viewing the property.
• Rather than working through offers one at a time, they might try to introduce “sealed bids”, which pits you against other buyers without you knowing how much they are willing to offer.
• Open house days are another estate agent tactic that can also work to encourage buyers to act quickly and get into a bidding war

So stay focused on the property and try not to be influenced by these estate agent tricks of the trade if you encounter them. Remember, these tactics are aimed to get the best price for the seller – that’s the estate agent’s job. So don’t get carried away, keep in mind what you can pay for the property and stick to this – there’s no point in getting your dream home if you are then struggling financially. You might find our guide on the best questions to ask an estate agent when you are viewing a house useful.

Being overly-friendly

When you’re viewing a house, beware how much personal information you give away when you’re making small talk with the estate agent. It may seem like the estate agent is just being friendly and taking an interest in you. But one of the estate agent tricks of the trade is to try to find out information that will be useful to the seller like if you’re in a rush to move and what your budget is.

So when it comes to how to deal with estate agents when buying, while you’ll want to make sure you’re polite and pleasant, treat it as a game of poker and play your cards close to your chest. Never let the estate agent know your bottom line (if you’re selling) or your maximum budget (if you’re buying).

Use our Best Estate Agent Finder tool and compare the success rates, average days to sell and track record achieving asking price of estate agents in your area

Giving false reassurance

Estate agents operate under consumer protection regulations and a Code of Practice. But despite this and you asking all the right questions, estate agents may not have the answers, or worse give vague answers or ones that just aren’t right in an attempt to reassure you. At the end of the day, they just want the sale. So take what they say with a pinch of salt and make sure you do your own investigations.

For example, while estate agents may tell you when asked how long the lease is, whether the owner got planning permission for the extension and why previous sales have fallen through, you need to follow up yourself either through your conveyancing solicitor, by ordering a professional survey or your own investigations. Remember, the current system for buying a property is based on the principle ‘caveat emptor’ – or buyer beware. This means the onus is on the buyer to make investigations about the property before exchanging contracts to purchase.

But unfortunately not all estate agents will play by the rules. So if you are buying a property and you have any queries you should ask your solicitor or conveyancer to investigate them, don’t just rely on the estate agent’s word, especially if it’s something that you have been told by an estate agent that is an important factor in your decision to buy.

You can start a complaints process if the estate agent has withheld information and you only discover it at a later date, perhaps after you’ve bought the property. But it’s best for you to avoid needing to do this and to get the facts straight via your conveyancer.

Can estate agents lie about offers?

They shouldn’t, but that doesn’t mean they won’t. So beware that phantom offers may be one of the estate agent tricks of the trade used. If your offer has been accepted, the property you are buying is sold subject to contract and it’s all steam ahead towards completion. However, we regularly hear about the estate agent calling soon afterwards to say that someone has put in a higher offer. So you may be asking ‘Can estate agents lie about offers?’.

If you suspect this is a false bid, challenge the estate agent and ask to see proof that this third party exists.

Whether real or hoax, being gazumped is depressing and can cost you money. There are a few options for reducing the chance of being gazumped but they cost – see Gazumping: what is it and how to avoid it.  

Some estate agents have introduced a “Good Will Charter”. Both parties pay a deposit which they will lose if they don’t go through with the sale. It’s not fail safe and is extra hassle to arrange but it might help you weed out people who aren’t serious about the deal.

Another option is a lock-out agreement whereby the seller has to take the property off the market for a limited amount of time while the deal is being completed. You will have to move quickly to get everything done before the time period is up. Discuss the pros and cons with your solicitor.

And here at there HomeOwners Alliance, we’re working with the government on its proposal for a reservation agreement to put an end to the home buying and selling chaos.

Home Buyers’ Protection Insurance can protect you in the event of being gazumped, or if the seller changes their mind. Find out more here >

Pressuring you to use their mortgage brokers 

Some estate agents have been reported putting pressure on people to use their mortgage service, saying they will get preferential treatment or, worse, claiming they are unwilling to work with them unless they do. And while some might think this is just one of the estate agent tricks of the trade, the tactic of putting undue pressure on you in this way is illegal. By all means, get a quote from the estate agent’s mortgage adviser before shopping around, but bear in mind that:

• they may have a far narrower selection of mortgages than if you look further afield
• there may be an upfront charge for their advice whereas some mortgage brokers and banks can give you mortgage advice for free

Also be aware there have been accusations of mortgage brokers and estate agents working closely together, openly discussing potential buyers’ budgets in order to get as much money out of the buyer as possible. So again, find out what deal they can offer while remembering that you are under no obligation to accept their mortgage offers. For steps to take see “Why you should avoid estate agent in-house services”

Do estate agents lie?

Yes they can, but the law is clear that they shouldn’t.

Paragraph 7i of the The Property Ombudsman Code of Practice reminds agents that the Consumer Protection from Unfair Trading Regulations (CPRs) “require you to disclose any information of which you are aware….in a clear intelligible and timely fashion”.  The Paragraph continues “All material information must be disclosed and there must be no material omissions which may impact on the average consumer’s transactional decision”. And there are lots of occasions where complaints about an estate agent “omissions” have been upheld and compensation paid – for example this case study on the TPO website.

But while these laws and consequences exist, the best course of action for you is to do everything you can to protect your own interests. So as we explain above, if you have any queries when you’re buying a property, ask your solicitor or conveyancer to investigate them – especially if it’s something that you have been told by an estate agent that is an important factor in your decision to buy.

Also, to check the condition of the home you are buying, make sure you have a house survey done as well.

We also advise you to keep a written record of conversations with the estate agent about buying the property, in case there are any problems further down the line. If you have a conversation, ask them to put the information in an email.

But even if an estate agent isn’t seeking to mislead, when it comes to estate agent tricks of the trade, they will want to present the property in the best possible light. So if the listing says it has spacious rooms, don’t assume it has. Check the floorplan or property description and see for yourself.

Estate agent tricks of the trade – tips for sellers

An estate agent is less likely to ‘pull a fast one’ on a seller, since technically they are working for you (and their fee will be paid from the sale of your property). However, bear in mind that they may still be looking out for number one, so may not always prioritise your best interests – so you should be up to speed on estate agent tricks of the trade. Here are some examples and how to deal with them.

Overpricing your home

When you set out to find the best estate agent, as part of the process you’ll speak to a number of estate agents and each will value your home. The valuations may vary by tens of thousands of pounds. But don’t just pick the highest estimate; over-valuing a property is one of the estate agent tricks of the trade to watch out for.

If you go on the market at too high a price you may then wait in vain for offers, only to have to lower your price – by which time your property has been on the market for some time, which in itself can put off buyers. So make sure you value your house correctly. Find out how to do this in our guide What price should I sell my house for?

Undervaluing your home

Similarly, when it comes to how to deal with estate agents when selling beware of an estate agent valuing your home too low as well. It means they’ll get a quick sale and earn their commission but you could lose out significantly. Again, this is one of the estate agent tricks of the trade that’s easy to avoid by doing your own research into what your house is worth and by getting a number of valuations too.

Have a shared agenda

When you’re selling, it’s important you’re on the same page as your estate agent. Be clear about your priority: is it to get the maximum price or to sell as quickly as possible? Most agents will instantly understand and support what you want, but sometimes there is a risk the agents’ agenda eclipses your own. Avoid this by shopping around to find the best estate agent for you. Getting the right valuation and a sales strategy that suits you will be key.

Selling you extra advertising

If your house isn’t selling, maybe you need to think about changing your tactics. It’s one of the common estate agent tricks of the trade for the agent to suggest they can do more to advertise your property – at additional cost to you.

Think hard about this estate agent tactic: why haven’t they done everything they can to market your property already? And is the extra money refundable if you still don’t get an offer?

See our guides for more advice on finding the best estate agent to sell your home and what to watch if you are switching estate agents.

Exaggerating success

When an estate agent is trying to win your business, it’s natural that they will want to give the best spin possible on their performance. But don’t just take their word for it that they’re the best performing estate agent. Instead why not let the data speak for itself. You can compare success rate, speed of sale and track-record achieving asking price using our free Best Estate Agent Finder tool.

“Lots of buyers on my books“

One of the common estate agent tricks of the trade when an agent is trying to persuade you to sign up with them is to tell you about potential buyers they have lined up waiting to buy a property like yours. But as most buyers now start their property search online on portals like Rightmove and Zoopla, if someone is actively looking to buy a house, as long as your property is on the portals, most buyers will see it regardless of which agent has signed you up.

So don’t fall for this estate agent tactic, make sure you do your research to find the best estate agent. Compare success rate, speed of sale and track-record achieving asking price using our free Best Estate Agent Finder tool.

Long agency agreements

Most estate agent contracts will specify a tie in period and these can vary dramatically across agents. Four weeks or 12 weeks are the most popular terms, any more than this is unnecessary. So if it’s longer than this in the contract then negotiate. You can always renew your agreement when it ends if you’re happy, and if you’re not happy you can switch to another agent. However, if you are planning to change estate agents, make sure you read our guide on Switching estate agents and avoiding double commission first.

VAT-free commission fees

When it comes to estate agent tricks of the trade watch out for fees being listed without VAT. The Property Ombudsman says ‘Fees advertised by estate agents must be shown inclusive of VAT  – alongside a statement confirming that VAT is included.’ However, we often see estate agent fees quoted excluding VAT (currently 20%). So check your fee is quoted inclusive of VAT to avoid a shock further down the line.

What to do if an estate agent lies

So we’ve looked at estate agent tricks of the trade but if you think the estate agent acted illegally, what next? You may be able to take legal action but this could be expensive. And a Court judge is more likely to look favourably on your case if you have exhausted all other routes to settle your dispute before resorting to the courts.

In the first instance then, we recommend you exhaust the estate agents internal complaints procedures. After that, you can take your case to The Property Ombudsman. To find out more see our guide on how to complain about your estate agent.

Frequently Asked Questions