Questions to ask an estate agent when they value your home
When the time comes to make the move and sell your home, one of the first things you will want to know is how much your home is worth, followed by the best way to market your property. Using independent online valuation tools and researching the local property market to see what similar homes in your area are selling for will give you a good idea of an acceptable asking price for your property, but it is always helpful to have a local expert(s) undertake a detailed valuation of your property in person,
Whether you decide to use a traditional high street estate agent like Foxtons or an online agent such as Yopa, we would always recommend asking a few different agents to value the property for you to give you an accurate idea of the value and to get an idea of the services (and fees!) available locally. Remember, you are not tied to an agent just because they undertake a valuation and reputable agents will not charge for this service regardless of whether you end up using them to sell your property.
So, what should you ask at valuation? Here is our round up of the top 15 questions to ask an estate agent when they value your home.
- How much do you charge, are there any additional charges and when are your fees due?
First and foremost, you will want to know the fees for any estate agents you are thinking about using, and fees can vary hugely. Many agents charge a commission-based fee, i.e. a percentage of the price paid by the buyer. However, some will charge a flat rate or minimum fee and there are pros and cons to both. For example, some vendors feel that an agent may work harder to sell a property if their fee is dependent on the final price paid whereas some will prefer to know the total amount they will need to pay upfront so they can budget accordingly. For properties with a more modest asking price, a minimum fee might not be the most cost-effective option.
You also need to make sure that you clarify whether the fee quoted by an estate agent includes VAT and whether there will be any additional charges such as the professional photos, for sale signs etc. Ideally, these costs should all be included in the fee. You should also be aware that if an agent charges an upfront fee to sell your home then you may lose out financially if your house doesn’t sell or you decide to take it off the market or switch to another agent.
- What type of contract do you use and does this include a tie-in period?
There are generally three types of contract you would have with an estate agent:
- Sole agent
- Joint sole agreement
- Multiple agency agreement
The most common is sole agent. Fees will generally be a bit lower, since one agent takes the entire fee. Some vendors believe that a sole agent is the best way to go because the assumption is that the agent is better motivated to find a buyer if they are taking the full fee.
Sometimes you might use both a local and national estate agent and split the fees between the two. You will often end up paying a little more, but if the local agent has an agreement with the national agent, you may be able to combine local knowledge with national attention. This is essentially a joint sole agreement.
It isn’t uncommon to use multiple agents, but this will cost you more since most estate agents will charge extra for the overheads of having to liaise with each other. Multiple agency agreements are often popular with repossession properties because the bank will want a quick sale to cover legal fees and the outstanding mortgage so the final selling price, as long as it covers costs, is less important.
Whatever type of contract you sign, you need to be clear on any future liability if you were to take your home off the market or decide to switch to another agent since some agents will request exclusivity for a certain period. Always make sure you read the small print!
3. How much is our property worth and what asking price should we set?
To get a clear idea of where you should set your asking price and who you should list your property with you should ask at least 3 different estate agents to provide a valuation. Their local knowledge will give you a good indication of what is popular right now and what similar sized properties are selling for in the local area.
Do be aware that the type of fee an agent charges can have an impact on the value they place on your property. For instance, agents on a commission-based fee may value your home at a higher price which will boost their commission whereas agents with a ‘no sale, no fee’ guarantee may undervalue your property to increase the chances of finding a buyer.
- Is my property ready to sell?
An agent will provide an unbiased opinion of the condition and layout of your property and whether or not it will appeal to local buyers. They can suggest changes to décor which could help you to sell the property more quickly or more significant improvements which could really push up your asking price. Remember, you are selling the property after all, so you might not be the key demographic for buyers of similarly sized and priced properties in the area and your personal taste and what works for you may not appeal to your buyer.
As well as pointing out potential defects which could put a buyer off your property, an Estate Agent should also be asking about the Energy Performance Certificate (EPC) during the valuation. If you haven’t had an energy performance inspection carried out and a certificate issued within the last 10 years, it is a legal requirement that you do so before your house goes on the market. The estate agent can arrange this for you, but it is often cheaper to do this yourself if time is not an issue.
- Is now a good time to sell?
A general rule of thumb is that Spring and Autumn are the peak season for UK house sales (experts site longer, warm days and a tendency for the new year, new house contemplation to set in, alongside the back to school, back to business feel in September). Summer holidays and the run up to Christmas tends to mean fewer sales happen in summer and winter, although 2020 has definitely been an anomaly in that respect!
However, your agent with have a good knowledge of local market conditions and is more likely to be aware of any upcoming developments within the property sector as a whole such as any tax breaks, new legislation or regulations which could have an impact on the sale and mean you should move quickly or hold fire on selling in the short term.
The longer your property is on the market the less attractive it can appear to potential buyers (or the more likely you are to receive cheeky offers) so consider your timing wisely.
- How will you market my home?
Who does the agent feel is the key demographic to market the property towards? Are there any changes you can make to the property to appeal to these potential buyers? Discuss what you consider to be your home’s biggest attributes to ensure your estate agent includes these in a property listing and look at examples of their previous listings for similar properties. Are there high-quality photos presenting properties in the best light? Online listings are important since, in today’s property market, over 90% of buyers begin their search online.
- Where will my property be listed?
Whilst there may appear to be a number of online property portals out there, the big two hitters are most definitely Rightmove (with 127.5 million-page visits per month) and Zoopla (50 million+ page visits per month. Therefore, you will want to make sure that your property is being marketed via one or both of these platforms rather than just via your estate agent’s own online platforms and social media.
If your agent uses OnTheMarket, who have a policy of advertising properties on their own portal for the first 24 hours and then only choosing to advertise with Rightmove or Zoopla, rather than both sites, make sure they have chosen the platform that you feel is right for your property.
It is important to remember that only a registered estate agent (either high street, online or hybrid) can advertise with a property portal, which is a big selling point for using their services rather than trying to go it alone.
8. How long will it take you to sell a property like mine?
You Estate Agent should be able to give you concrete examples of houses in the local area. Importantly, you also need to ask if these have resulted in asking price sales. If an agent is in the habit of slashing prices for a quick sale, they may not be the one for you.
You can compare local estate agent performance using various online tools such as the Agent Guide or the Home Owners Alliance’s estateagent4me tool.
- Have you sold any similar properties in the area recently?
Whether you have a niche property, or you are listing a property whose type and location are extremely sought after, it is helpful to know that your agent has expertise in selling the same type of property locally and knows the market well. This could also mean they already have a waiting list of potential buyers who have missed out on other similar properties and are ready and waiting to buy.
- What other similar properties are on the market currently?
Your agent should have a good idea of the local market and be able to give you an idea of the competition, whether there is a big demand for similar properties to your own at the moment or whether these types of properties are staying on the market for a while and it might be best to hold off selling in the short term.
- Can you recommend other professionals like a conveyancer, surveyor etc.?
Word of mouth recommendations are always useful, especially when it comes to something as important as selling your home. Estate agents deal with property sales day in and day out so they will likely have experience of working with many of the solicitors, conveyancers and surveyors in the local area. They may also be able to recommend a mortgage broker for your onward property too.
Estate agents who also have a lettings department handling maintenance for rental properties will likely have a list of preferred contractors, so if you need to get your home up to scratch quickly their advice on who to use (or avoid!) can be helpful.
- Who will conduct viewings and when?
It is important to find out your agent’s process for house viewings before you sign on the dotted line. Part of the cost saving associated with some online agents is that the vendor conducts viewings themselves and some high street agents may ask that you conduct the viewings outside of their standard office hours.
Generally, it is better for an agent to conduct a viewing since they can be more objective and have a better idea of the local property market. If an agent is conducting viewings, make sure that the agent is aware of all selling points which might not be immediately obvious e.g. planning permission or proximity to good schools, parks and family friendly activities.
Sometimes it is also helpful to point out anything that isn’t an issue for you as the vendor but could be for a buyer in different circumstances. For instance, a young family may be put off by things like ponds and steep inclines in a garden, but these can be relatively easy to change so shouldn’t be a deal breaker.
- Will you pass on buyer feedback?
After the excitement of a viewing, there is nothing more annoying than radio silence. Whether a buyer loves or hates your property you just need to know, so make sure your estate agent is proactive in gathering and relaying feedback.
Buyer feedback can also be incredibly useful in terms of changing the staging of your property or undertaking improvement work if there are issues a number of buyers have mentioned.
- How long will you advertise my property?
Perhaps surprisingly, your property may not stay on the market indefinitely unless your agent has a “no sale, no fee” policy. After around 6 months, if the property hasn’t sold agents who have charged an upfront fee may remove the listing and request additional payment. Make sure you query advertising timeframes with your agent before you sign a contract with them.
- How quickly will you get my property on the market?
If you have already spotted your next property and want to get your own home on the market quickly, it is always useful to ask an agent how long it will generally take them to get a property on the market. The size of the agency, their working hours and whether they use in house staff for photographs, valuations and EPCs will all dictate how long this process will take. You may have to be prepared to do more of the legwork if you go with a smaller agency and time is of the essence.