Published: 13/03/2022How to gauge if an estate agent gives you an honest property valuation
"How much can you sell my property for?" and "What is your fee?" are the first questions a seller will ask. Perfectly reasonable questions as focusing on these two essential factors determine how much you'll end up with in your pocket when the property is sold. But if you are choosing an estate agent based on these two points only, we advise you to ask two more questions before signing the contract.
As a property seller, you want to make sure that you're getting the best possible price for your property. However, not all estate agents are equal, and some may overvalue your property to secure your business. Here are some tips to help you gauge if an estate agent is giving you an honest property valuation.
- Ask about the tie-in clause: It's important to ask if there is a tie-in clause in the contract and, if so, how long it is. Some estate agents may lock you into a 24-week commitment, which can be a long time if you're not getting the results you want. Make sure you understand the terms of the tie-in clause before signing the contract.
- Be cautious of overvaluing your property: If an agent has a long tie-in period, it could be a sign that they are overvaluing your property to secure your business. Make sure you question the agent's pricing strategy and why they need so much time to sell your property.
- Check for notice periods: Long notice periods can be a sign of bad service. If an agent requires a notice period if you want to terminate the contract, it could mean that they are not putting their all into selling your property.
- Do your research: Before appointing an estate agent, do your research to make sure they have a good reputation for excellent service and delivering on their promises. Make sure you read the contract carefully before signing it, and remember that you can negotiate tie-in periods.
The importance of reading the contract before signing it
The contract between a seller and an estate agent is a legally binding agreement, and it's important to understand the terms of the contract before signing it. The contract outlines the responsibilities of both parties, the length of the tie-in period, and the notice period, if applicable.
It's crucial to read the contract carefully and understand the terms before signing it. Some contracts may contain clauses that you're not comfortable with, such as a long tie-in period or a notice period. It's essential to identify these clauses before signing the contract so you can negotiate them or choose another estate agent if necessary.
Moreover, the contract may contain information about the estate agent's fee structure, their marketing plan for your property, and their obligations in the event of a sale. It's important to know what services the estate agent will provide, how much they will charge, and what the process will look like from start to finish.
In summary, reading the contract before signing it is essential to ensure that you understand the terms of the agreement and that you're comfortable with them. If there are any clauses that you're not comfortable with, you can negotiate them before signing the contract, or you can choose another estate agent. By taking the time to read and understand the contract, you can help ensure that you have a smooth and successful experience selling your property.
For an honest free no obligation property valuation, call Circa London and one of our property experts will be happy to advise on the actual market value whether it be a Georgian terraced house in Roupell Street for sale or a luxury apartment for sale in NEO Bankside.