Ask an estate agent anything

[22s]

I've revealed my identity! I'm an estate agent (I like to think a good one) and proud of it!

There's lots going on in the property market at the market at the moment and I think a lot of misinformation about what good agents do, so happy to answer any questions from an agents' point of view.

Bit of background: I've been working in the SW London market (think Battersea, Clapham, Putney) for 5 years and now run my own office specialising in mid-market £500k-£1.5m properties. I also work as an independent buying agent for wealthy overseas investors who are looking to buy in London. I have a very untraditional background having actually started my career in one of the FAANG tech companies, before moving into business development at a startup and then moving over to agency world.

So go ahead... ask me anything!

[xyz123]

Don't take it personally but you did say ask anything.


1. Why are there so many lying and idiot estate agents who has zero interest in doing a decent job? Is it because of complete lack of regulation, very low slow skill requirement and a high turnover of staff?

2.Can anyone just become an estate agent after finding a firm and filling in a form or is there anything else involved..

[normalbloke]

xyz123 said:

Don't take it personally but you did say ask anything.


1. Why are there so many lying and idiot estate agents who has zero interest in doing a decent job? Is it because of complete lack of regulation, very low slow skill requirement and a high turnover of staff?

2.Can anyone just become an estate agent after finding a firm and filling in a form or is there anything else involved..

You don’t need to be able to fill in a form, clearly.

[bristolracer]

Does it bother you that many of your overseas investors will have made their money by morally dubious means or by exploiting their countrymen in appalling working conditions? Does it bother you that they will leave many of these properties empty far from the reach of the law and reduce the availability of housing stock?

[Simpo Two]

bristolracer said:

Does it bother you that many of your overseas investors will have made their money by morally dubious means or by exploiting their countrymen in appalling working conditions? Does it bother you that they will leave many of these properties empty far from the reach of the law and reduce the availability of housing stock?

His job is to sell his clients' houses, not to moralise.

[crankedup]

How much of traditional business risk do you see in the new (ish) internet sales businesses such as Purple Bricks?

[bristolracer]

Simpo Two said:

His job is to sell his clients' houses, not to moralise.

No. He stated that he works as a consultant finding properties for overseas buyers. In that instance he is not selling a property, his client is the buyer.
I'm guessing as he does this for a living it doesn't bother him.

[condor]

What type of waiting lists do you have for prospective buyers? I'm looking to buy a bungalow locally in the next year, presumably probate ones come up most often? For a buyer is it best to leave details with all the local agents or pick a personal estate agent to do all the looking for you?

[Milkbuttons]

How much does it actually cost you to list a property on platforms like Rightmove and Zoopla etc?

[cayman-black]

Are there many cash buyers in the market right now?

[brickwall]

How “hot” is the market right now, and how much of it is being driven by stamp duty? (And what do you expect to happen post June?)

[Rob_125]

Why do a lot of estate agents feel the need to compulsively lie?

Do you find estate agents will judge a potential buyer/their affordability on their outward appearance (i.e. the car they drive)?

How do you think the market will play out in the coming months?

[Monkeylegend]

You are a brave man or woman OP

[Ice_blue_tvr]

When people say they are "cash buyers".. How often are they actually buying outright in cash? I heard this term so many times when we were putting offers in for houses assuming it meant people had the cash to buy the house outright, to later find out that wasn't the case..

Does it really mean fk all, or is it just a massively misused term?

[22s]

xyz123 said:

Don't take it personally but you did say ask anything.


1. Why are there so many lying and idiot estate agents who has zero interest in doing a decent job? Is it because of complete lack of regulation, very low slow skill requirement and a high turnover of staff?

2.Can anyone just become an estate agent after finding a firm and filling in a form or is there anything else involved..

Not taken personally... I agree with you.

1. No licensing is a big issue - literally anyone can "do it". The barriers to entry are incredibly low and have been for years, which means those at the top of the business are generally there by virtue of tenure rather than any appreciable skill set or passion. This then filters down to the young ones who learn very bad habits and end up being "door openers". The pay is also comically bad apart from those at the very top, which means if you're a "neg" (negotiator - the one who will take you round the house as a buyer) who in London will usually earn a £20k base + 6-8% of the fee income, unless you're properly trained in a decent firm (unlikely - see above), you will say anything to get the deal done.

I will keep this short as there as so many questions, but I could talk all day about how many charlatans, dheads, scumbags and apathetic idiots who can't be arsed to a decent job are in this industry, which reflects poorly on all of us.

2. Technically yes, in that you don't need a qualification or licence, but at my company we are very, very selective and hire primarily from non-traditional backgrounds where people have not had the opportunity to pick up bad habits.

bristolracer said:

Does it bother you that many of your overseas investors will have made their money by morally dubious means or by exploiting their countrymen in appalling working conditions? Does it bother you that they will leave many of these properties empty far from the reach of the law and reduce the availability of housing stock?

I know the professions of my clients and none have made their money by "morally dubious means" as far as I'm aware. You've made a sweeping generalisation and this moralistic argument could extend to UK-based professionals in arguably immoral professions such as banking, mining, energy, and so on - but let's not go down that rabbit hole.

The empty property point is one I do wrestle with in fairness, but ultimately I believe the real issue regarding housing stock is poor government policy and land banking by developers not enabling an increased supply in affordable housing...

crankedup said:

How much of traditional business risk do you see in the new (ish) internet sales businesses such as Purple Bricks?

Great question. I don't see it as much of a threat right now. In spite of their marketing spend, their market share is declining and people are coming to the realisation that having a professional agent managing their sale usually results in a better outcome.

I view my role as a professional whose job is to get my client the best possible price for their property. With this in mind, I make sure they present their property in its best possible light, expose it to the right buyer set, get that buyerset emotionally connected to the property based upon their needs and wants, and - if possible - create the conditions for a competitive situation.*

Following the agreement of the sale, there is as much (if not more) work aligning all the parties in a chain and ensuring that a property progresses from under offer to exchange and completion as quickly and smoothly as possible.

With PurpleBricks and the like, they're not great at the sales part, and really, really bad at the progression part. You can sell your property through them, but getting the best price, and getting it actually exchanged, is where they tend to fall down. In fairness, if you have a very unique and desirable property that will sell in a heartbeat, or the market is super hot and everything sells, then PurpleBricks can be a good solution.

• I know buyers don't like to hear that last part about competition - and I am also a human and a buyer of property so hate those scenarios when on the other side as well - but when I'm working for a seller, if they're paying 1.5-2%, it is my responsibility to make them as much additional money over what they would pay to a PurpleBricks or a 1% agent.

condor said:

What type of waiting lists do you have for prospective buyers? I'm looking to buy a bungalow locally in the next year, presumably probate ones come up most often? For a buyer is it best to leave details with all the local agents or pick a personal estate agent to do all the looking for you?

Most agents will have a hot buyer list. Unfortunately, most don't manage it too well. With this in mind, my advice is to do this:

- List out all the requirements that you have for your property
- Get your finances in order in terms of how you will be funding the property
- Call up all the local agents, have that list of requirements ready to list off to them and make it clear you have finance in place ready to go
- Drop them a one line email every couple of weeks and a call once a month so you're on their radar (they will forget you otherwise)

That means as soon as something suitable comes up, you'll be through the door first. Good luck!

Milkbuttons said:

How much does it actually cost you to list a property on platforms like Rightmove and Zoopla etc?

Very good question! It's a monthly fee, generally charged at a branch level, and depends on the size of your portfolio. The answer is a LOT. Generally for less than 5 properties, you'll pay around 1k per month including VAT, and rises exponentially from there. RM is an amazing business - agents hate them because of the cost, but you have to use them. Closest to a monopoly that I've seen operating in real life. Zoopla is a distant second - also okay for generating leads - it's a touch cheaper.

cayman-black said:

Are there many cash buyers in the market right now?

In my market yes. Certainly not the majority though. Sold one yesterday £526k cash. Another last month £950k cash. And lots with very chunky deposits.

brickwall said:

How “hot” is the market right now, and how much of it is being driven by stamp duty? (And what do you expect to happen post June?)

London houses, very hot. London flats with good outside space, very hot. London flats with small outside space (balcony), warm. London flats with no outside space around £500-700k, tepid. London 2/1.5 flats sub £500k with no outside space, tepid. One bed flats with no outside space, cold.

It is somewhat driven by stamp duty, but most buyers I speak to bar the very bottom of the market see the saving as a "nice to have" but not an essential. People don't tend to make huge life altering decisions for the sake of £15k, no matter what the media will have you believe! The main drivers are actually lots of people with a lot more cash from staying at home and not eating out or holidaying in the last year, which has brought their moves forward, the rollout of the vaccine which has given more people confidence in an economic recovery, and related to the vaccine point people now being given clear guidance from their employers about what they will be doing in terms of wfh/work from office going forward.

Post-June, we probably will see a bit of a slow down, but it's really crystal ball stuff. I thought the market was going to die last October after furlough was supposed to end, which then got extended, and the opposite happened. My outlook is generally bullish!

Rob_125 said:

Why do a lot of estate agents feel the need to compulsively lie?

Do you find estate agents will judge a potential buyer/their affordability on their outward appearance (i.e. the car they drive)?

How do you think the market will play out in the coming months?

Re: lying, I think poor training, a desperation for money, and a complete information imbalance meaning you usually won't get caught probably encourages this type of behaviour. I don't lie to buyers and actually highlight all issues upfront so everyone is on the same page from the beginning, but sadly I probably am an exception

Re: judging, I don't think so. Most people don't give a st about cars (especially in London) so it's not an indicator. It's more about what you say and I also ask for proof of funds from EVERYONE before putting an offer forward, so it's kind of irrelevant how you dress or present yourself so long as your money is green!

Re: market, see above. Potential slowdown after June, but I don't see a cliffedge. Too many positive catalysts or that to happen in my opinion. Caveat: could be completely wrong.

Monkeylegend said:

You are a brave man or woman OP

Help...

[kevinon]

normalbloke said:

xyz123 said:

Don't take it personally but you did say ask anything.


1. Why are there so many lying and idiot estate agents who has zero interest in doing a decent job? Is it because of complete lack of regulation, very low slow skill requirement and a high turnover of staff?

2.Can anyone just become an estate agent after finding a firm and filling in a form or is there anything else involved..

You don’t need to be able to fill in a form, clearly.

I disagree.
Wasn't there a TV thing where it showed Foxtons staff forging client signatures? They seemed to do a good job of that form-filling.

[22s]

Ice_blue_tvr said:

When people say they are "cash buyers".. How often are they actually buying outright in cash? I heard this term so many times when we were putting offers in for houses assuming it meant people had the cash to buy the house outright, to later find out that wasn't the case..

Does it really mean fk all, or is it just a massively misused term?

Cash buyers to me is cash - readies in the bank account.

Some use it as catch all for "not a mortgage". For example, someone might buy using a bridging loan. This is subject to far fewer affordability checks and is processed much more quickly than a traditional mortgage, so you can usually exchange and complete in the same amount of time as a cash buyer because the legals take so long.

[67Dino]

My world is financial tech where most things these days can be done by businesses digitally, or by consumers online or with an app. Yet you buy a house and there’s a lot of face to face, phone and paper involved still, like doing insurance or banking in the 1980s.

Why is the real estate industry so manual and is it changing? Do you think I ever be able to buy a house completely online or with an app?

[22s]

67Dino said:

My world is financial tech where most things these days can be done by businesses digitally, or by consumers online or with an app. Yet you buy a house and there’s a lot of face to face, phone and paper involved still, like doing insurance or banking in the 1980s.

Why is the real estate industry so manual and is it changing? Do you think I ever be able to buy a house completely online or with an app?

I think it's a highly complex, fragmented and localised industry which makes it extremely difficult to produce a tech solution which will provide suitable protection to both buyer and seller.

When reviewing a property, you have the fundamentals (what is it made of? What's the condition?), the subjectives (how do I get to work? What are the restaurants like round here? How about the schools?) and the legals (what's the tenure? What actually comes with the property? Etc).

It's also a huge investment for most people, so having advice or insight into the above is always a useful thing, and that tends to involve hiring a professional in that area (be it surveyor, agent, solicitor, mortgage advisor).

Much like a complex business transaction where you have teams of professionals from all different disciplines working on a particular part of the deal, the same is true of a property transaction but on a smaller scale. Example: I just sold a flat which someone bought with an amazing roof terrace. During the legal process, their solicitor found out the roof terrace was actually illegal even though it had been in use since 1991 and the transaction happened in 2017. The agent then needs to mediate the process between buyer and seller, which ends in the seller paying the freeholder to get the terrace legally signed off. These types of situations are not all that uncommon.

One click purchases probably can happen for new builds - off plan has been happening for years and I'm sure there probably are some online purchases that happen for those types of property.

I think tech will continue to make inroads and provide better and better information to inform throughout the process, but I think it's a big hurdle to overcome for people to get their head around buying a house online.

The cynic in me also says that there are a lot of lawyers, surveyors and agents out there who have a vested interest in that not happening...

[s1962a]

What are your thoughts on an official sellers information pack, similar to HIP reports from long ago? I know searches etc are pretty much out of date by the time the report is produced, but information like building control/planning approvals, basic home condition report, and information on the lease etc would be quite useful for prospective buyers. I know work might be duplicated (searches, surveys etc) but some basic information would save time in my opinion.

I saw an advert for an auction property, and they seem to to provide some basic information upfront in the ad, which I thought was good.