How you can avoid underhand tactics by estate agencies
HOW dirty is your estate agent? I ask because the way some, but certainly not all, agents conduct themselves is questionable. In some cases, underhand tactics and overstepping the mark is becoming more commonplace as the market tightens.
Let me give you some insight into the types of misdemeanours taking place. Firstly, ghost viewings. These are where an agent arranges with the vendor to show someone around a property. However, this would-be buyer doesn’t exist in reality as they are simply a person brought in to show the vendor that the appointed agent is getting interest.
In one recent example, the vendor didn’t believe what their agent was saying about proposed viewing. After opening the front door to the agent, the vendor left and went around the corner to climb a tree with a pair of binoculars. Sure enough the proposed viewing was nothing more than the agent’s work colleague pretending to be a buyer.
After the viewing, the vendor rang the agent to see how it went. The agent then went into sales mode to express that it was a strong contender and they would work on person who viewed the house. Caught in the act more like!
Proactive touting of other agents’ properties has always been standard. However, these can be filled with false promises of several buyers waiting in the wings, though the agent has little intention of selling your home. Instead they want to use you as marketing collateral for their own gain as your home will look great on their social media channels and websites.
The issue becomes more disturbing when this agent does not sell and leaves the homeowner with a vast digital footprint, which could put some buyers off as they may not want their new home plastered all over the internet.
A recent client had one of these rogue agents try and do this. However, in order to try and secure their business from another agent, they went one step further by continually ringing the house intercom and waiting outside their home to try and speak with them, which is borderline harassment in my opinion.
Of greater concern is the worst kept secret in the property sector. This is where true professionals in the industry start questioning why HMRC and the police have not questioned an agent they know is a rogue.
These rogue agents build up significant debts running into several hundred thousand pounds. When it gets too much, they simply fold their limited company and reopen the next day under another banner.
Despite this, clients continue to use the agent as they have done no research on Companies House to check out the agency or the person heading it up. If it goes down again, they risk losing money as a result. Plus the debt the rogue agents create has to be paid somehow and that is by us, the taxpayer.
As you can see agent rivalry and competition involving the unscrupulous has taken a turn for the worse but by carrying out some extra checks on your chosen agent you will cut the risk of issues. And remember, there are those you can trust.