Vendors open to agent alternatives
Updated on 11 November 2009
Consumers are becoming increasingly open to other ways of buying and selling homes that avoid using estate agents, research has shown.
The Office of Fair Trading (OFT) said although the majority of sellers still used an estate agent, more than a third initially considered selling their home privately, using an online estate agent or selling their property at an auction.
It said there was a marked increase in interest in online estate agents compared with when it last carried out a survey on the issue in 2004.
The research, which was undertaken as part of the OFT's market study into the homebuying and selling process, also found consumer satisfaction levels with estate agents had improved during the past five years. Around 88% of buyers and sellers said they were satisfied with the service they received from estate agents, up from 72% of buyers and 74% of sellers in 2004.
The majority of consumer complaints relating to the homebuying process were also about other buyers or sellers or their solicitors, rather than the estate agent involved in the transaction.
But a survey of Trading Standards found that in 2008, one in four estate agents was failing to comply with relevant regulations when they were first visited by officers.
Two-thirds of buyers said their estate agent recommended providers of other services, such as mortgages, surveys and legal advice, to them, although only 36% of buyers took up any of these recommendations.
Eight out of 10 buyers said they did not think they received a 'hard sell' from their estate agent to take up these services, for which the estate agent would receive fees.
Heather Clayton, OFT senior director of infrastructure, said: "This is important research which updates the available evidence about the process of buying and selling a home and current and future developments in the sector. For example, it shows the enormous potential for new internet-based business models in home buying and selling."
The OFT plans to publish its study into the home buying market early next year.
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