Questions to ask an estate agent before you instruct them

Instructing an estate agent is a contract, and a reasonably expensive one. The questions below help you compare agents on more than the valuation they give you, and to spot the terms that cause trouble later.

Ask about regulation and redress

Every estate agent in the UK that deals with residential sales must belong to a government-approved redress scheme, such as The Property Ombudsman. Ask which scheme the agent belongs to and check it. Letting agents must belong to a redress scheme too, and in most parts of the UK must also be in a client money protection scheme if they handle rent or deposits.

Membership of a professional body such as Propertymark (which incorporates ARLA for lettings and NAEA for sales) is voluntary but means the agent has agreed to a code of practice. It is a sensible thing to ask about, not a guarantee.

Understand the fee and what triggers it

• What is the fee, and is it quoted including or excluding VAT? Ask for the total figure in pounds, not just a percentage.
• Is it a sole agency, joint agency or multi-agency agreement? Sole agency is usually the cheapest but ties you to one agent.
• How long is the tie-in period, and how much notice do you have to give to end it?
• Does the agreement include sole selling rights? If it does, the agent is owed the fee even if you find the buyer yourself.
• Is there a "ready, willing and able purchaser" clause? This can mean you owe a fee if the agent finds a buyer, even if the sale does not complete. Ask for it to be removed if you are not comfortable with it.
• Are there any extra charges for photography, floorplans, premium listings, an energy performance certificate or withdrawal?

Ask for the agreement in advance and read it at home. If you sign it in your own home, you normally have a 14-day cooling-off period under consumer contract rules, and the agent should tell you about it.

Ask how the valuation was reached

A high valuation is not the same as a high sale price. Ask each agent:

• Which recent sales nearby did you use to reach this figure?
• What is the difference between the asking price you recommend and the price you expect to achieve?
• How many similar properties in the area are currently for sale, and how long have they been listed?

An agent who can explain the figure with local evidence is more useful than one who simply names a bigger number. If one valuation is far above the others, ask why.

Ask about the marketing and the process

• Where will the property be advertised, and will it appear on the major property portals?
• Who takes the photographs and writes the description, and can you approve them before they go live?
• Who conducts viewings: the agent, or you?
• How will you be told about viewing feedback and offers? All offers must be passed on to you in writing.
• How does the agent check that a buyer is proceedable, for example that their mortgage is agreed in principle and their own sale is progressing?
• Who will handle your sale day to day, and how do you contact them?

Ask about their record, then check it

Ask how many properties like yours the agent has sold in the last year, how long they typically took, and what proportion of the asking price was achieved. Agents will naturally present themselves well, so treat the answers as claims to verify rather than facts. Look at their current listings in the area and see how long they have been on the market. Check the business exists at Companies House if it is a limited company.

You can compare estate agents in your area on Annuvell Local, where each listing shows checked contact details and a Request Quote option so you can ask several agents the same questions.

Questions for letting agents specifically

If you are letting rather than selling, add these:

• Which service do you offer: let only, rent collection or full management, and what does each cost?
• How are tenants referenced?
• Which deposit protection scheme do you use?
• How are repairs handled, and is there a limit above which you must approve the cost?
• What are the renewal, inventory and check-out fees?

Next steps

Invite at least three agents to value the property and give each of them the same list of questions. Ask for the terms of business in writing, compare the total fee and the tie-in period, and choose on the strength of the answers and the evidence behind the valuation. Only sign when you have read the agreement away from the agent.