Whenever I’ve bought and sold in the past I’ve not necessarily used the same estate agent. This is not always practical in any event. Some would argue strongly against using the same agent, whereas others are okay with it.
So is it best to buy and sell with the same estate agent? The reason why it would be best to buy and sell with the same estate agent is if they are known to be proactive. But you have to be careful about a conflict of interest. You shouldn’t automatically use the same estate agent you’re buying your new house from, until you’ve compared them against other agents in your area.
But you do have a choice which agent you use when you sell your own house.
So just because you happen to find the right house you wish to buy from this particular estate agent, doesn’t necessarily mean they are the right agent to sell your property.
You should go with a good agent and one that has a good local reputation. You need an agent that’s going to proactively sell your house. So in a nut-shell don’t just go with the estate agent because you are buying from them, go with them because they are good.
There’s no law against an estate agent acting for both parties, so long as both parties consent.
What are the reasons why you would buy and sell using the same estate agent?
There are benefits to using the same estate agent to buy and sell with. But this will only work if both houses are in the same area. It’s simply not practical to buy and sell using the same estate agent if you are relocating to a different area.
Pros of buying and selling using the same estate agent
- You may be able to negotiate a better sales commission. The estate agent would benefit from two sales commissions from the two transactions. In which case they may be willing to offer a lower commission rate to secure your business.
- The estate agent has a bigger vested interest in the conveyancing chain than if they are only dealing with one of the properties. Whilst they must maintain confidentiality between the parties, they are in a much better position to know more of what’s going on than if they were only acting for one side of the deal.
- Speed of the transaction might be faster, as there’s one agent to deal with two transactions.
- If you have one agent coordinating both sides, this will minimise the stress and hassle associated with using two agents.
What are the reasons why you should not buy and sell using the same estate agent?
There are a number of reasons why you shouldn’t use the same estate agent.
Cons of buying and selling using the same estate agent
- There could be a conflict of interest. Whilst an estate agent should respect your confidentiality, there’s a possibility for a compromise of information. Then estate agent is working for you as the seller, but then they are also working for the vendor for their sale too. This scenario could create a conflict. As an example, what’s best for you as a seller in one situation may not be best for the buyer. And visa versa.
- Using the same agent doesn’t allow you to keep your hands close to your chest.
- If you are relocating to another area, it’s simply not practical for the estate agent in the new area to sell your current home. They will not know the area and house values. Also, they won’t be able to carry out the viewings of your house.
- The type of property the estate agent normally sells may be different to your house. For example, if you are down-sizing and the estate agent that sold you your new house only sell smaller properties. If your current house is a larger property and isn’t they type this agent is used to selling, it wouldn’t be a good idea to use the same agent.
Some choose an estate agent because of the people
Another reason to pick one estate agent over another is about the people.
Estate agencies are people businesses. To most it’s important to be able to like the people you are working with.
If you don’t like the people at the estate agent, you may find it difficult to work with them.
What are an estate agents legal obligations to buyers and sellers
Estate agents must treat buyers and sellers fairly.
The agent must show any offers to the person selling the house. ~This must be done promptly and in writing. The same applies to all offers made right up to when contracts are exchanged. This is because they are legally obliged to pass on all offers for the property.
But of course the seller doesn’t have to accept any offer made.
The estate agent also owes both parties a fiduciary duty of care. But if they break their fiduciary duty of care to either client they can be sued.
So in conclusion should you buy and sell with same estate agent?
Using the same agent for buying and selling might seem like an easy option, but it may not necessarily be the best thing to do due to the potential for a big conflict of interest.
But if you do use the same agent, they must be up for representing you and the seller at the same time and you have to be comfortable that the agent will best represent you and your interests.
However, if you are moving to another neighbourhood outside of your area, you won’t be be able to use the same agent in any case.
Please don’t forget to read this before you leave…
Please don’t forget to also read this article to discover how you could save £71,475 on your next mortgage if you sell your house and rent before buying again. As I said earlier, even I was amazed when I did the calculations!
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