Use the same Estate Agent to Buy / Sell?

You see a property that you’d like to buy that is being sold through an estate agent in town. Do you assume that you should ask the same estate agent to sell your own property? Should you use the same estate agent twice? Property consultant Alex Goldstein discusses the issues with doing this and reveals that there is another way to approach it.

Use the same Estate Agent to Buy / Sell?

Full transcript below:

Alex: The property hospital is all about me answering your property questions and concerns when it comes to your experiences in property. Now this week I’m actually answering a question from Helena who’s got this to say.

Helena: An estate agent has launched a property on the market that I really like but I need to sell mine. I’m strongly considering instructing that same estate agent to sell my property, so I can secure the one I want. What do you think?

Alex: Helena, please be careful. Instructing an estate agent in the sale of your own home just because they’re handling the sale of a property you would like to purchase is not actually the right way to go about it. Now many think in this situation it will mean yourself and the agent can sort of engineer a bit of a situation so that they sell your home and then you get to buy this other property but it’s really not the case nowadays. Of course, the agents going to love to sell your home, they’re sales people after all, however your reasoning for choosing them isn’t quite right. Now remember an agent is legally bound to report any offers or interests on a property right up until the point of exchange to that homeowner. Now, say what would happen if a cash buyer liked the same property as you. The estate agent would have to report it to the vendor. That purchaser is in a much stronger position than yourself and would in all likelihood secure that property. The estate agent would not be allowed to hold back this cash buyers offer just because you were there too, albeit you would certainly be noted as an interested party. It may be that this agent is the best option when it comes to selling your own home, however when you instruct an agent to sell your home you must base it on more than just the fact they’re selling this other property you would like to buy. Consider company viewings, marketing, editorial, additional office exposure, front of office staff, getting under offer to the exchange procedure, the list really does go on. The idea of having some form of leverage over the agent or indeed the other homeowner really isn’t the case nowadays due to the legal standards set within the estate agency sector. Once you’ve taken this element out of your thinking, the right answer and your reasoning for wishing to come onto the market will become clear. Do give me a call if you would like to talk it through further.