How to… find a property search agent
Sophy Buckley looks at the dos and don’ts when finding and using a property search agent
No one knows how many property search agents there are in the UK - estimates for just the Home Counties and London range from 300 to over 1,000. Given that employing one could cost you tens of thousands of pounds - or more - and, in the words of one agent, is the closest relationship most people have outside marriage, how do you find the right one?
Anyone can set up as a search agent and there is neither a professional qualification nor professional body. There are dodgy ones, diligent ones and big, slick ones owned by the top-end estate agents (operating Chinese walls to avoid conflicts of interest) and all have lovely websites and glowing testimonials so whether you’re looking for an agent to buy in the UK or overseas, the first thing to do is to ask friends and colleagues.
“Word of mouth is best,” says Sophie Bramble, founder of Bramble Property Search, who has been helping clients find homes worth between £1m and £40m across the south of England for five years. “But Google can be useful.”
Once you have a short-list, she says, always ask to see client case studies (which should be anonymous as confidentiality is key) and probe them on their contacts, processes and costs. “It’s a good idea to arrange a two-day call back after the first meeting. A good agent will have used that time to find a few properties to start narrowing down the brief,” she adds.
Philip Selway of The Buying Solution, part of the Knight Frank estate agency group, believes the age of the agency is crucial. “Setting up as a buying agent is cheaper than as an estate agent so lots of property professionals give it a try. They do well in the first year when their contacts are good, but by year three it all dries up. Longevity is all.”
Tim Hammond, founder of the Association of Property Finders and Buyers Agents, says a good agent will have an intimate knowledge of a limited area and for the UK suggests a limit of a 30 mile radius. “Any larger and they won’t have strong relationships with estate agents or really know the property landscape,” he explains.
Sophie agrees: “It’s all about access, particularly to off-market, privately available properties and getting to view them first.” Budget will also narrow the field as some agents specialise in different house-price bands.
When interviewing the agent, ask about the service. For example, office hours are useless for those based or travelling overseas, or for those who work long hours, so explore how flexible agents are at meeting and communicating beyond 9-5. And think about how well you got on in that first meeting – if you are at all uncomfortable it will not work.
The next step is the contract.
Search agents don’t just find properties – they should offer independent advice; price-compare houses for value; perform due diligence often before highlighting a house to a client; research local planning policy; check security; evaluate surveys and building reports; investigate schools, transport links; and they negotiate the deal - which has been known to save a buyer the agent’s fee, usually between 1 and 3 per cent of the purchase price. So when a client signs the contract they are not just agreeing a finder’s fee but to pay for a diverse set of services. Should they find a property themselves, they should still expect to stump up the agreed fee.
“There will be a sole buyer’s agreement (SBA) in the contract and it may seem unfair but if a client is alerted to their perfect home by an agent or friend, they cannot circumvent the contract,” says Tim.
Aside from the SBA, the contract can be adapted to a client’s needs and should also detail services that incur additional charges such as camera crews, detailed architects drawings, CAD mock-ups, surveys. It should also include a break clause. Tim suggests no more than 14 days, but at The Buying Solution, it’s a month. Once signed, expect to pay a retainer of between £500 and £2,500 which may be a one-off charge or be paid quarterly. Some agents take this from the final fee, for others it’s an additional charge. There may also be an initial consultation fee.
Once up and running, let the agent take the lead, advises Sophie. “Let them view the properties and supply you with detailed analysis over and above what an estate agent would offer such as noise pollution, schools, transport links, neighbourhood feel, history,” she explains. “You should hear from your agent regularly – every week or so.”
Some searches are fast – the whole process from hiring to owning could be three months; others take longer. “I’ve had some clients take over a year to find their perfect house,” says Sophie.
Whatever the timescale, be prepared from the outset with a conveyance solicitor in place. Having all the ducks lined up puts the client in the best possible position to win preferred bidder status, which, as Philip says, can mean the client gets the house, even if they are not the highest bidder.
Visit the Bramble Property Search website, the Buying Solution website or the Association of Property Finders and Buyers Agents for more information.
By Sophy Buckley
