Estate agents are licensed professionals who help people buy and sell their homes in the UK. An agent will walk you through the process of buying or selling a home and represent your interests throughout the property transaction.
Successfully buying or selling a home can largely depend on finding the right estate agent to work with. This article will explain how to find an estate agent, and how working with one can benefit first-time home buyers.
What Is An Estate Agent?
An estate agent is a professional who represents buyers and sellers during property transactions. They work independently or through an estate agency firm. If you’re buying a home, an estate agent (specifically a buying agent or the seller’s agent) will provide relevant listings and negotiate on your behalf (if a buying agent) or facilitate negotiations (if the seller’s agent).
If you’re a seller, your estate agent will provide comparable listings in your neighbourhood and help you sell your home for the best price possible. Estate agents in the UK typically earn a commission for their services, which usually ranges between 1% – 3.5% (plus VAT) of the home’s final sale price, though fixed fees are also available, particularly with online agents. The seller usually pays this commission.
Many people use the terms “estate agent” and “Realtor” interchangeably, but they aren’t the same thing. “REALTOR®” is a term specific to the US and refers to a member of the National Association of REALTORS® (NAR). In the UK, while there isn’t a direct equivalent, many estate agents are members of professional bodies like Propertymark (e.g., NAEA Propertymark for sales) or the Royal Institution of Chartered Surveyors (RICS). These memberships bind them to follow a code of ethics and best practices. Consumers can report agents to an approved redress scheme (like The Property Ombudsman or Property Redress Scheme) if they violate the code of ethics or regulatory requirements.
What Does An Estate Agent Do?
Estate agents help homeowners buy and sell homes by either acting as the listing agent (representing the seller) or a buyer’s agent (representing the buyer, a less common but growing specialism in the UK). Listing agents represent sellers during a property transaction and help them sell the home for the best price.
A buyer’s agent walks the home buyer through the process of purchasing a house and will negotiate with the seller (or their agent) on their behalf. Here are some common activities estate agents engage in:
- Listing homes on major property portals (like Rightmove, Zoopla, OnTheMarket) and their own website.
- Scheduling open houses/group viewings.
- Scheduling individual appointments with potential buyers.
- Showing sellers comparable homes (local market analysis) to help with pricing.
- Sending/receiving offers on the buyer’s behalf and negotiating terms.
- Negotiating with the other party for a fair price and favourable terms.
- Walking the buyer or seller through the conveyancing process (the legal transfer of property ownership), liaising with solicitors, and ensuring the transaction stays on track to completion.
What To Look For In An Estate Agent
Here are the key qualities you should look for in an estate agent:
- Knowledgeable of the local market: They should have a deep understanding of pricing trends, neighbourhood features, and recent sales in your specific area.
- Referrals from friends or family: Personal recommendations often lead to trustworthy professionals.
- Has a strong track record of sales and listings: Look for agents active in your desired area.
- A strong understanding of property contracts and the UK conveyancing process: They should be able to guide you through the legalities and paperwork.
- Good communication skills: They should be responsive, clear, and keep you informed at every stage.
- Always willing to negotiate to get you a better deal: They should be a strong advocate for your interests.
- Membership in a redress scheme (legally required for residential sales agents in the UK) and ideally, a professional body like Propertymark.
How To Find An Estate Agent
It’s always a good idea to meet with several estate agents before choosing the one you want to work with. If you’re wondering how to find a good estate agent, here are five steps you can take.
1. Get A Mortgage in Principle (MIP) / Agreement in Principle (AIP)
The first step for a buyer is to get an initial approval, or Agreement in Principle (AIP), for a mortgage. During an AIP, your mortgage lender will review your finances and conditionally approve you for a mortgage. They’ll also send you an AIP letter that outlines how much you’ve been approved for and the potential terms for your loan.
It’s important to get an AIP first so you know what kind of house you can afford. From there, your estate agent can begin looking for potential homes that meet your needs and budget. It also shows sellers and their agents that you are a serious and viable buyer.
2. Do Your Research And Get Referrals
It’s important to do your own research on estate agents and ask friends or family members for referrals. If they recently moved and had a good experience with a certain agent, you may want to meet with that individual.
You’ll be spending a lot of time with your agent during the home buying/selling process, so you want to work with someone you trust. It’s also a good idea to check the online reviews for anyone you’re considering hiring (e.g., on Google, Trustpilot, or property portals).
And while recommendations are a great starting point, keep in mind that your friends or family may not have the same home buying/selling goals as you. You can also find an estate agent by attending open houses or viewings in your area, or by checking official directories (like the National Trading Standards Property Agent Checker or Propertymark’s ‘Find an Expert’).
3. Interview Multiple Agents
Once you’ve found potential agents, you’ll want to interview them to see if you want to work with them. Sit down with a list of questions, and allow the agent to ask you any questions they have in return.
As the agent answers your questions, pay attention to their responses and how comfortable you are with that individual. Does it seem like the agent understands your goals and what you’re looking for in a home?
It’s also a good idea to ask about the current housing market in your area. You want to work with someone who knows the neighbourhood you want to live in. Make sure your goals align by asking about their work history and why they’d be the right agent for you.
4. Ask For References
Before making a final decision on who to work with, always ask the agent for a few references (ideally from recent clients). From there, you can contact those references and see what their experience was like.
If their references are a little light on the details, you can ask them if they would be willing to work with that agent again. If they say “no,” you may want to rethink hiring that person.
5. Check Your Contract
When you hire an estate agent (particularly if selling), you’ll sign an agency agreement or contract with that person/firm outlining the terms of your agreement. It states that you’re hiring that agent (exclusively or on a multi-agency basis) to help you buy or sell your home and explains the agent’s commission fees and any other charges (e.g., for premium marketing, EPCs if arranged through them).
You should always read through the contract to make sure you understand everything before signing. If there’s anything you’re unsure of, you can ask your agent to clarify or seek independent legal advice. This is the best way to ensure everyone is on the same page.
Tips For Buyers And Sellers Looking For An Estate Agent
Asking the right questions can help you determine whether an estate agent is a good fit for you. Here are some questions you can ask, regardless of whether you’re looking for a buyer’s agent or a listing agent:
- “Are you registered with a government-approved redress scheme (e.g., The Property Ombudsman, Property Redress Scheme)?” (This is a legal requirement for residential estate agents in the UK).
- “Are you a member of any professional bodies (e.g., Propertymark, RICS) and do you follow a code of ethics?”
- “How many years of experience do you have, particularly in this local area?”
- “Do you work by yourself or as part of a team, and how does that affect communication/availability?”
- “What kind of fees do you charge, and is VAT included?”
Tips For Home Buyers:
Here are some questions home buyers can ask when choosing an estate agent:
- “What type of representation do you provide (e.g., dedicated buyer’s agent, or do you primarily work for sellers)?”
- “Will you help with a bidding war or competitive offer situations?”
- “Do you have access to properties not yet widely advertised (sometimes called ‘pocket listings’ or ‘off-market’ properties)?”
- “Do you have any recent experience of sales/purchases in the specific neighbourhoods I’m interested in?”
- “Will you help me negotiate with the seller’s agent to get the best possible terms?”
Tips For Home Sellers:
Here are some questions sellers can ask when choosing an estate agent:
- “What is your recommended asking price for my home, and what is your rationale based on comparable recent sales?”
- “Are you comfortable handling negotiations, and what is your strategy for securing the best price?”
- “Will you manage the ‘ins and outs’ of the sale process, including liaising with solicitors and managing viewings?”
- “How will you market my home (online portals, social media, photography, virtual tours, open days)?”
- “Can you tell me about any recent home(s) you sold in this area, and what price they achieved relative to asking price?”
Finding An Estate Agent FAQs
The following are frequently asked questions about estate agents – they may help answer any lingering questions you still have.
How much commission does an estate agent make?
In the UK, most traditional estate agents charge a commission that ranges between 1% – 3.5% (plus VAT) of the final sale price. This fee is typically paid by the seller. Online estate agents often charge a fixed fee, which can be significantly lower. For example, on a £400,000 home, a 1.5% commission (plus 20% VAT) would be £7,200. This is usually paid directly to the selling agent, who then manages any internal fee split if a buyer’s agent is involved.
Do I need to hire an estate agent?
Technically, you don’t have to use an estate agent to buy or sell a home in the UK (‘For Sale By Owner’ – FSBO – sales do occur). Many people who choose not to work with an estate agent are trying to avoid paying the commission fees. However, this isn’t always the best approach.
If you’re a buyer, a dedicated buying agent can help you find potential homes that meet your needs (including off-market ones) and negotiate an offer with the seller. They can also provide guidance through the survey process and negotiate for any necessary repairs based on survey findings. Unless you’re confident you can do these things on your own, a professional agent can be invaluable.
And as a seller, the right agent can help you list and sell your home for the best price, often faster. Data consistently shows that homes sold through an agent typically achieve a higher sale price than those sold privately, often offsetting the commission fees.
Why should I work with an estate agent?
All buyers and sellers can benefit from working with an estate agent, but it’s especially helpful for first-time home buyers. An agent can help you navigate this complex process and do a lot of legwork on your behalf. Agents have access to vast property databases, deep knowledge of local neighbourhoods and comparable sales, and crucial negotiation skills. They also guide you through the intricacies of the UK’s conveyancing process.
The Bottom Line
The right estate agent is someone who understands your goals for buying or selling your home and goes above and beyond to meet them. With a little research, you can find a competent agent with a proven history and established relationships in the property industry.
You can find an agent by asking for referrals and interviewing potential agents before you decide on one. When you’re ready to start your home buying journey, finding an estate agent is just one step. You’ll also want to get a Mortgage in Principle.