Estate agents must put clients first
The call by Jon Quinn, who heads Halls who have an office in Welshpool, follows Monday night’s Panorama programme on BBC One which went undercover to expose dubious sales tactics at two large estate agents.
The programme uncovered evidence that one agent favoured buyers taking out mortgages brokered by itself, over the interests of other potential buyers, known in the industry as ‘conditional selling’.
A whistleblower who worked at another national estate agent said staff were under pressure to sell add-on services and were incentivised by a commission scheme to get sellers to drop their house prices.
Whilst both estate agents maintained they treat customers fairly, Mr Quinn said the programme cast a negative light on the whole sector, blighting those who uphold strong ethics and standards across their organisations.
He is concerned about the sales tactics of some estate agents and feels that now is the time for the sector to work together to ensure the high standards employed by many are enforced across all.
Established in 1845, Halls has nine estate agency offices covering Shropshire, Worcestershire, Cheshire, Mid and North Wales and the West Midlands.
“There is a serious problem within the industry, which must be addressed, with some estate agents not having their clients’ best interests at heart when selling their property,” he said.
“Our valuers at Halls are trained and specifically instructed to focus on what is best for the client, without considering additional potential income from referrals. The primary question a valuer must ask is: ‘How can we achieve the best price for the property?’.
“We are strictly regulated by the Royal Institution of Chartered Surveyors (RICS) which has mandatory Rules of Conduct that all members must adhere to. These rules cover ethical principles like honesty, integrity and professional competence, which marry perfectly with our ethos at Halls.
“That’s why we are proud to have 18 RICS registered valuers within the company.”
Earlier this year, Mr Quinn spoke out about the tactics of some rival estate agents who inflate the value of residential properties just to win the sale instruction. The properties then fail to sell and the owners are forced to reduce the asking price to the level originally advised by responsible agents.
He stressed that an accurate market valuation from an experienced surveyor is critical when selling a residential property in a price-sensitive market. Overvalued properties are either ignored by home hunters or potential sales risk falling through during the conveyancing process.
“We often see examples of homeowners being told that their house is worth between 10% and 25% more than its actual value to win the instruction and the property ends up not selling,” said Mr Quinn.
“Their estate agent then convinces them that the market is terrible and a price reduction is required. The truth is the property market is merely price-sensitive. People looking to move don’t want to waste time and money.”
Halls has two estate agency offices in Shrewsbury and one each in Telford, Ellesmere, Whitchurch, Oswestry, Kidderminster, Bishops Castle and Welshpool.
PICTURE: Jon Quinn, Halls’ managing director.
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