The difference between an estate agent and a buying agent

Expert advice: Sheree Foy, Source Harrogate – the Property Finders www.sourceharrogate.co.uk

A question I’m often asked is what is the main difference between a buying agent and an estate agent? People are familiar with the estate agent offices on the high street, however buying agents are a rarer breed. The biggest difference is that buying agents work for, and are paid by, the buyer. Estate agents work for, and are paid by the seller, even though they need to work with buyers all the time to achieve sales for their customers. Could the difference in numbers between estate agents and buying agents be rooted in human behaviour? A successful property transaction for a vendor leads to a large cash sum reduced only by estate agents’ fees (typically around 0.5 to two per cent of the property price) and conveyancing fees, which are a widely recognised part of the process. On the other hand, a successful purchase of a property could mean parting with a large sum of money, negotiating a mortgage, paying stamp duty, conveyancing and surveying fees plus buying agent fees (often around one to two per cent) – perhaps a more painful feeling. Most buying agents tend to focus on the premium end of the market, where availability is lower and buyers are perhaps more willing to pay for a very detailed, personal service. So, why use one? Put simply, a good buying agent should increase your chances of finding and securing the right home at the best available price. Whilst a buying agent is unlikely to guarantee to save you money, they should be negotiating to secure the best outcome and you could recoup some, all or more than your fee as a result of their skilful negotiation on your behalf. In addition to looking at properties on the market, buying agents also have access to properties off market (those not visible on the familiar portals or the window of the estate agent). Buying agents can also work with surveyors, financial planners and solicitors to keep everything on track to exchange of contracts. They will be on hand to provide key contacts for any repairs or renovations that may be required post purchase. So, how do you find a great buying agent? The first thing is to find one that shares the same focus as your property search. For example, if you are looking to buy a premium property in Sheffield, try to find a buying agent that specialises in that market. If a buying agent claims to cover too large a geography or price range, it is unlikely that they’ll have the detailed knowledge needed. Remember that your requirements may go beyond the bricks and mortar to include advice on local schools, commuting times, planned property development etc. Do they really have personal and/or professional experience of the kind of property you are looking to buy and even more crucial, the kind of lifestyle you are striving to create? For example, if you are looking for an executive home to suit a growing family, is this a situation that the agent will have faced in their own life? Remember to ask to speak to previous clients. Recommendations on websites and Google are interesting but you simply cannot beat the opportunity to ask questions of a previous client that has experienced the service. Finally, any good buying agent will offer a free no-obligation chat to talk you through the service and you should get some valuable advice. This is also the ideal time to see if the personal chemistry works.