So you’re considering changing estate agents but is it worth it? When should you change, what's the process to change and being careful of continuing liability and how to avoid being charged double commission.
If you are disappointed with your estate agent’s service you may consider changing estate agents. But switching estate agents can raise concerns whether you could be hit with having to pay two sets of commission.
So it’s vital you do your research first. We take a look at everything you should consider before switching estate agents.
Switching estate agents is a big decision but if you don’t think the estate agent you’ve instructed is performing well enough and think you could sell your house more easily or for more money by changing estate agents then it may be something you want to do.
Reasons why some people change estate agents include:
If you’re asking ‘Can I change estate agents?’ first and foremost check the small print of the contract with your estate agent. You should check:
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If your contract suggests, and the estate agent confirms, that you would remain liable to a fee if someone originally introduced by them went on to purchase the property, whether privately or through another agent, then ask the agent for a list of names of those introduced or ask them to pass the names onto your new agent.
The Property Ombudsman’s Code of Practice is clear that if a seller terminates their contract with an estate agent, the agents must explain clearly in writing any continuing liability the seller may have to pay the agent commission. And also any circumstances the seller may have to pay more than one commission fee. And that this explanation must include a list of parties that agent has introduced to the property.
When instructing a new estate agent, you should be up front about your previous experience and the names of who has already expressed an interest and where the other agent may be entitled to commission on the sale. You may want to make this explicit in your agreement with your new estate agent. It is also possible that the two estate agents can come to an agreement as to whether the commission should be split between them before the matter arises.
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If you are selling to someone introduced by your first estate agent, then yes, potentially. However in most circumstances this is not the case. To avoid problems, the two estate agents should decide who gets the fee between themselves prior to you moving forward with the new agent. It is common for two estate agents to come to an agreement as to how to split the commission between them.
He also mentions that in the case of Foxtons vs Hamptons (2008), for example, it was ruled that the fact that an estate agent might have first shown the property to a future purchaser, does not automatically entitle the estate agent to commission on the purchase. It was found that the estate agent must be the effective cause of the purchase (i.e. put in the greater amount of effort in to the sale) to win the commission. However, each case is different and you don’t want to be caught up in the middle of a dispute.
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If you’re changing estate agents you’ll want to make sure the new one is better. When it comes to what makes a good estate agent, some factors are:
Being enthusiastic about your property: The best estate agents will be positive about the prospect of selling your home. You’ll get this insight as soon as you invite them for a valuation meeting.
Being proactive: You’ll want to be confident the estate agent will be proactive in marketing and chasing up viewings and offers, calling them to tell them about your property. And while it’s a good sign if an estate agency is busy you’ll want to be sure they have enough time to focus on selling your house.
Checking the data: Compare local estate agents based on the facts: how quickly they sell property, how close they come to achieving the asking price and how successful they are. Our free, impartial Best Estate Agent Finder tool helps you find the best estate agents in your area.
If you’ve hired an estate agent as the sole agent without success, you may consider opening business up to other agents on a multiple estate agents basis. This will give the agent you choose an incentive to sell as soon as possible. Although you’ll usually pay a higher fee. Find out more in our guide on Using multiple agents: Does it help?
If you’ve decided to switch estate agents, here’s how to do it.
So if you’re considering changing estate agents, here are the key points:
The benefits of switching estate agents may include access to new potential buyers and enthusiasm. But it’s important to check your contract to make sure you’re not still in your tie-in period. For more read our guide on Estate Agent Contracts: What to watch for.
This is one of the main concerns of anyone interested in switching estate agents. But it will depend on your contract. Some will charge hefty fees if you leave your contract early. And you could be liable to pay two sets of commission. So think carefully before switching estate agents and read our guide above carefully.
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