14
Jul
Estate agents warned over fixed fees
The ombudsman for estate agents has warned those working in the
profession to ensure they are open and transparent if they opt for
a fixed fee approach to commissions rather than the usual
percentage of the sale price.
Christopher Hamer noted that he has recently seen a number of cases
where an estate agent has opted for a fixed fee but not explained
this adequately to the customer.
In addition, in situations where the property has been overvalued
either carelessly or deliberately and sells for significantly less
than the asking price, the agent has an unfair advantage by asking
for a fixed fee.
He therefore advised that "the property valuation must always be
supportable but reflect the market situation and the fee must be
openly described as fixed irrespective of the price finally
achieved for the property".
In related news, the Office of Fair Trading recently approved an
estate agents redress scheme, allowing the secretary of state for
business enterprise and regulatory reform to make an order
requiring all UK agents dealing with residential property to join
an approved scheme.
