The Real Problem with Real Estate Agents

Posted by Nick Niesen on November 8th, 2010

Real Estate Agents - the issue

For many years it's been every home movers nightmare, not just the moving and the hassle of packing up home, not just the outrageous taxes, stamp duties and other moving costs. The thought of paying estate agents fees for what?s often known as "money for old rope". Well the government has now told them to clean up their act. Though this was raised in June 2004 and still nothing has been enforced.

The tricks real estate agents use
England house purchasing process needs to be undergoing some dramatics changes. Estate agents are asking buyers for up to £1000 backhanders to enable them to have the properties they want ahead of the crowd. This is a total misuse of position and yet has gone on for years. The money lines the estate agents pocket and is never seen coming off the house price or future fees.

Outrageous Fees
While a % is used as an estate agents fee, the work involved in sales doesn?t reflect the payment. You could market most properties for a few hundred pounds, yet the average payment is between £3000 - £5000.

Undervaluing
To get a quick sale, estate agents will undervalue a property, that sale takes place with minimal work and the fees taken are easy money. This is why it's recommended that a homeowner always takes three independent valuations before agreeing to go with an agent.

Estate agent lies
Never, surely not. In 1979 and act was passed to make it legal that all details are to be accurate and passed on to the property seller. In fact, this is rarely enforced.

Gazumping
A study showed that one in five buyers were gazumped. This was often due to estate agents marketing properties while under offer.

In Ireland they have moved away from the percentage system as prices have gone out of control. The average cost to sell a house is around £700, which is a lot lower than the average 1.75% that estate agents ask for in England.